Congress has reached a compromise on key wireless spectrum issues that had the potential to put the kibosh on innovation and competition when it came to both mobile broadband and unlicensed spectrum. The House and Senate had proposed language in a bill that interfered with the FCC’s ability to set the terms of a proposed auction for a portion of the digital TV spectrum, and also prevented the agency from allocating unlicensed spectrum that could be used for white spaces broadband or even more airwaves for Wi-Fi.
But on Thursday legislators reached a compromise that ensures that the FCC will be able to set spectrum auction rules, which means it will have the freedom to ensure that AT&T (s T) and Verizon (s VZ) don’t walk away with the lion’s share of the new spectrum (after it sets a public rulemaking). Of course, the rules that are currently being proposed for that auction still leave the value of those airwaves for mobile broadband in doubt. Now it just has to vote on the legislation tomorrow.
From a tech perspective it’s the compromise on unlicensed spectrum that’s the most important. The law will acknowledge that the FCC will have the authority to designate spectrum as unlicensed in the TV band and beyond — meaning Congress can’t demand that if the FCC gets airwaves it has to auction them the highest bidder. Yes, such an action ensures more money for the U.S. Treasury (and presumably a boon to taxpayers), but it also means that technologies that could rely on unlicensed airwaves may never come to fruition. And, those technologies, such as Wi-Fi, Bluetooth and others arguably offer consumer, business and economic benefits that offset the loss to the U.S. Treasury.