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Broadcasters receive free access to spectrum worth billions

“You broadcasters get subsidized access, free access to a valuable public resource, the airways, worth billions of dollars.”

Editorial explanation

Why it is included

Broadcasters are granted licenses to use public spectrum rather than acquiring perpetual, market-priced spectrum rights in the same way wireless carriers obtain licenses via auction. The economic value of broadcast spectrum is large and has been realized in recent FCC spectrum transactions (for example, the 2016 broadcast incentive auction and subsequent spectrum auctions that involved billions of dollars). However, broadcasters typically do pay regulatory fees and operating costs, and the term “free” is shorthand for license-based access without routine market-price spectrum charges. The basic factual core — that broadcasters use public airwaves whose market value can amount to billions — is supported by FCC auction results and analyses, though precise valuation varies by band, market, and methodology.

Analysis

What the official said

“You broadcasters get subsidized access, free access to a valuable public resource, the airways, worth billions of dollars.”

Claimant: Brendan Carr Chairman, Federal Communications Commission
Agency or office: Federal Communications Commission

Context

Chairman Brendan Carr defending FCC probes of broadcasters and arguing broadcasters benefit from use of public spectrum and therefore must operate in the public interest.

Evidence

Broadcasters are granted licenses to use public spectrum rather than acquiring perpetual, market-priced spectrum rights in the same way wireless carriers obtain licenses via auction. The economic value of broadcast spectrum is large and has been realized in recent FCC spectrum transactions (for example, the 2016 broadcast incentive auction and subsequent spectrum auctions that involved billions of dollars). However, broadcasters typically do pay regulatory fees and operating costs, and the term “free” is shorthand for license-based access without routine market-price spectrum charges. The basic factual core — that broadcasters use public airwaves whose market value can amount to billions — is supported by FCC auction results and analyses, though precise valuation varies by band, market, and methodology.

Evidence

Sources