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CEA, CTIA React To NAB Spectrum Study

New York – The
Consumer Electronics Association (CEA) and CTIA – The Wireless Association each
released statements regarding the National Association of Broadcaster’s

on spectrum incentive auctions


From the CEA: “The
NAB study sets up and knocks down a purely fictional straw man. The study
presumes an unrealistic scenario in which every single existing TV station
continues to operate over-the-air. However in the event of incentive spectrum
auctions, it is highly likely numerous stations will capitalize on their
spectrum assets by exiting the business or sharing resources. 

“More, the NAB
study implies that many broadcasters will be forced to auction their spectrum.
However, current congressional legislation includes only voluntary incentive
auctions and reimbursement expenses for relocation costs.

“Our nation faces
a crisis as demand for wireless spectrum will soon outstrip supply. Meanwhile,
the number of Americans relying purely on over-the-air TV is less than 10
percent, according to both CEA and Nielsen market research. Incentive auctions
would be a financial windfall for broadcasters, free up the spectrum necessary
for the next generation of American innovation to move forward and bring in $33
billion to the U.S. Treasury.

“Spectrum auctions
would be a win-win-win for the United States. CEA, CTIA – the Wireless
Association, the Federal Communications Commission (FCC), the Obama
Administration and numerous members of Congress support spectrum incentive
auctions. NAB stands alone and is simply trying to protect its business

Guttman-McCabe, VP of CTIA – The Wireless Association, said, “Contrary to the
scare tactics that NAB is presenting to consumers and policymakers,
reallocating underutilized spectrum will not remove free over-the-air broadcast
television. We also want to remind broadcasters of two key points in all of the
incentive auction discussions, as well as in each of the legislative discussion
drafts. First, participation in the auction is voluntary. Second, repacking
costs will be reimbursed. NAB’s study confirms that even under their analysis,
spectrum can be moved voluntarily to its highest and best use, billions can be
raised for the United States Treasury and free over-the-air broadcast services continue.

“Even though we
are the most efficient users of spectrum, driving high-speed mobile broadband
to 300 million Americans, the U.S. wireless industry needs the ability to
purchase more spectrum in order to continue to provide their customers with the
best products and services in the world. Since spectrum is a finite resource,
it is vital that the U.S. government ensures the highest and best of use.
Economists estimate that for every dollar invested in mobile Internet, it will
create an additional $7 to $10 for the GDP. This is in addition to the tens of
billions of dollars that will be raised at auction. Our members want to help
boost our country’s economy, but they must have access to more spectrum. This
can, and should, be a win-win-win.”