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Spectrum Fees May Preclude US Low-Cost Cellular

Posted by kdawson on from the no-free-lunch-or-breakfast-or-even-tea dept.

theodp writes "Not to apologize for an industry that charges $27,000 to catch a Chicago Bears game, but will the huge spectrum fees charged by the government block the emergence of low-cost cellular service? In the most recent FCC spectrum auction, carriers paid nearly $20 billion to grab a swath of the 700MHz spectrum. And now under President Obama's proposed budget, wireless carriers would be hit with huge annual fees — eventually reaching $550 million per carrier per year — for the right to hold a spectrum license. Critics say the carriers will simply pass these fees through to consumers."

2 of 246 comments (clear)

  1. Do the math... by aaarrrgggh · · Score: 4, Informative

    $10/user/year for the proposed fees.

    $40/user/life for the license.

    Drop in the bucket compared to the initial infrastructure deployment. In an efficient business, service would be almost free after 12 months.

  2. Re:tax in disguise by Shakrai · · Score: 3, Informative

    You are basically arguing the same old tired right wing arguement

    Pointing out that the carriers will pass any increased costs onto consumers is "the same old tired right wing argument"? Ya know, you guys don't get to automatically dismiss any and all criticism of Obama using that line, right?

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.