If Congress passes a proposed payroll tax extension plan, it will have an unexpected effect on the world of mobile broadband. To partially fund the tax cuts, the government will auction off public airwaves, now being used for television broadcasts, to expand wireless Internet access nationwide.
The $100 billion compromise bill, finished Thursday but not yet put to a vote, would extend a 2% payroll tax cut and maintain unemployment benefits for people unable to find a job for a long stretch of time.
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According to The New York Times, $25 billion of that cut will come from auctioning off spectrum to wireless providers, such as Verizon Wireless or ATT.
Getting more spectrum into the hands of wireless providers should allow them to create faster, more expansive networks for people who use smartphones, iPads and other devices that bring the Internet to the palm of a user’s hand. And that would mean more economic growth for the U.S., according to lawmakers in favor of the deal.
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“With 13 million Americans still seeking employment, job creation is a driving force behind efforts to expand wireless broadband,” said Rep. Fred Upton (R-Mich.) and Rep. Greg Walden (R-Ore.) in a joint statement. “Spectrum auctions are not only good public policy for the communications and technology sector, they will produce meaningful job creation when we need it most.”
$1.75 billion will be given to the Federal Communications Commission (FCC) to pay television stations that agree to take a new position on the wireless spectrum. That would allow the Commission to auction larger (and therefore more valuable) continuous blocks of spectrum.
Julius Genachowski, chairman of the FCC, said in a statement that he was “pleased that Congress has recognized the vital importance of freeing up more spectrum for mobile broadband,” while also warning that the bill may not allow the FCC to “maximize” the utility of the actioned spectrum.
The bill doesn’t allow the FCC to prohibit major wireless providers, which already own a large swath of spectrum, from taking part in the auction. However, the bill does allow the FCC to limit the amount of spectrum a company can hold in a particular market.
The plan would also create a dedicated first responders’ network as well as unlicensed airwaves around the auctioned spectrum. That buffer zone could be used for setting up Wi-Fi in cities or to lessen the strain on a wireless network experiencing an unusual level of stress.
The bill is expected to come to a final vote in the House and Senate on Friday. President Obama, who has previously championed the idea of selling spectrum to enhance national wireless broadband access, said he would sign the bill as soon as it reaches the Oval Office.
What do you think of Congress’s plan to auction off wireless spectrum? Sound off in the comments below.
Image courtesy of iStockphoto, Olena_T
This story originally published on Mashable here.
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