[opendtv] Re: News: CEA FORECASTS CONSUMER ELECTRONICS REVENUE WILL SURPASS $155 BILLION IN 2007

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Fri, 12 Jan 2007 07:37:09 -0500

At 9:49 AM -0800 1/11/07, John Willkie wrote:
It's not what politicians say; I was referring to the Communications Act of
1934 as amended.  You might want to read it from time to time.

I have. Last time I checked, it was written and passed by politicians.


It's not the privileged few who get licenses, its people who fill out
applications for construction permits.  Luck and perseverance aren't
attributes of privilege.

Whatever you say John. Try getting a license in a major TV market.


Who cares what telecom guys/gals are crying?  Just because somebody opens
their mouth about a new competitor doesn't mean a whit to anybody.

Maybe not to you, but the politicians need to get top dollar for the 700 MHz spectrum that may finally be auctioned in the next two years. If there is a perception that broadcasters will be able to deliver FTA services to mobile receivers, the value of that spectrum to competitors will be significantly deflated.


Only an ignorant idiot would say that ALL broadcasters don't pay for their
spectrum.  There are annual spectrum-use fees, etc.  Broadcasters who have
held their channels for decades didn't pay for the spectrum, but people who
have bought stations in recent decades (note how station sales are spiking
these days) have paid many millions of dollars for "free" spectrum.

The fees that broadcasters pay are chump change, primarily intended to fund the operation of the FCC. These fees are in the noise level, compared to the billions that are being paid by potential broadcast competitors for small chunks of spectrum.

As for the inflated price of TV stations, you are making my case about the "privileged few." The government made a big mistake when it allowed a market for broadcast licenses to exist; it is going to be very costly to undo that mistake. But it does substantiate my assertion. You cannot file an application with the FCC and get a license in any major market - you must buy an existing license at a price that is SIGNIFICANTLY higher than the value of the physical assets of the station. And the government does not get a dime, other than the fees that the FCC collects for the license transfer.

Regards
Craig




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