US Wireless Spectrum Auction Raises $44.9 Billion

An anonymous reader writes: The FCC's recent wireless spectrum auction closed on Thursday, and the agency has raked in far more money than anyone expected. Sales totaled $44.89 billion, demonstrating that demand for wireless spectrum is higher than ever. The winners have not yet been disclosed, but the FCC will soon make all bidding activity public. "The money will be used to fund FirstNet, the government agency tasked with creating the nation's first interoperable broadband network for first responders, to finance technological upgrades to our 911 emergency systems, and to contribute over $20 billion to deficit reduction. In addition, the auction brought 65 Megahertz of spectrum to market to fuel our nation's mobile broadband networks. The wireless industry estimates that for every 10 Megahertz of spectrum licensed for wireless broadband, 7,000 American jobs are created and U.S. gross domestic product increases by $1.7 billion."

Comments

It's a regressive tax.

[Anonymous Coward]

A mobile phone is practically a necessity. The cost recovery on such massive "investment" is nothing more than a regressive tax. Well, actually, it's also a great barrier to entry.

$45 Billion is just another tax, different form

[Trachman]

$45 Billion? True, this is the amount raised. All of it has been paid to Uncle Sam.

The same amount of $45 Billion is also telecomunication companies' best estimate, a modelled amount, equal to the net present value of all their clients' prospective fees, less their expenses, to be collected in the future.

If a customer would ever ask a question, why his wireless service bill is so high, he would be given an answer that the bill includes amortization of $45 Billion of previously capitalized expenses, which companies had to pay.

The GDP increase by $1.7 B is merely an additional tax, that the parties will need to pay, and represents increase in prices that the customers will sooner or later pay.