Who really wins in spectrum auction?

There’s lots of celebration in the media about the supposed benefits that the recent spectrum auction will bring Canadian consumers in terms of cell phone and other wireless services, as well as speculation about what the federal government should do with the $4.25 billion in proceeds from the auction. But who really wins here?

The public is now on the hook to pay back this $4.25 billion to these telecoms companies for the privilege of accessing property that, as citizens, actually belongs to them – namely the radio spectrum. Moreover, their monthly fees will also go to pay hundreds of millions more to build the technical infrastructure to support any new networks as well as millions more in profits for these private companies shareholders. At the same time, because they live outside of the urban centres where these news services will be offered, millions of people will never see any of those benefits.

If it is the interests of “consumers” (as citizens) that the government really has in mind there are lots of better ways to put radio spectrum into public service. Community owned wireless systems, for instance, put both ownership and control of such services in the hands of the people who actually own the resource -- that is, Canadians as a whole – and community ownership helps ensure that the services are designed and priced to meet the needs of users rather than corporate shareholders. There are numerous examples and models of community wireless systems in both North America and other parts of the world for the government to choose from.

As for what to do with the auction windfall? How about using some of it to ensure that all people in Canada have access to wireless services, such as investing in bridging some of the digital divides that still exist between rural and urban dwellers and the inner cities and more affluent parts of town. Or how about putting some of it into supporting community radio and television outlets? Or independent and not for profit wireless news and information services? What’s the point in having national wireless networks if they are filled with commercials like where to buy the latest ring tones, the closest pizza joint, and the nearest place to get a loan until pay day.

The radio spectrum is public property. It’s time to give the peoples of Canada rather than private corporations control over the resource.

For more information see:

Spectrum Auction to Transform Wireless Industry
The Toronto Star
http://www.thestar.com/article/465074

For Sale to the Highest Bidder: Telecom Policy in Canada
Marita Moll and Leslie Regan Shade (eds.)
http://www.policyalternatives.ca/Reports/2008/03/ForSale/

Community Wireless
http://www.communitywireless.org/

Community Wireless Networking and Open Spectrum Usage: A Research Agenda to Support Progressive Reform of the Public Airwaves
Sascha Meinrath
http://ci-journal.net/index.php/ciej/article/viewFile/233/192