As featured on Daily Kos 
By: Mike Montgomery

$12 billion.

That’s a lot of clams, even to the federal government. But that’s approximately how much the Federal Communications Commission (FCC) will be leaving on the table if they restrict some bidders during their upcoming spectrum incentive auctions, according to economists Robert J. Shapiro, Douglas Holtz-Eakin, and Coleman Bazelon. In their study published by Georgetown University, “The Economic Implications of Restricting Spectrum Purchases in the Incentive Auctions,” the trio warn that limiting just two participants — Verizon and AT&T — from taking part in spectrum auctions could “reduce auction revenues by about 40 percent.”

But wait, there’s more. The group also estimates that forcing certain providers to watch from the sidelines could raise consumer bills by 9 percent. In short, the federal government will be refusing money, and consumers will be paying more money for their wireless service.

If that sounds backward to you, you’re not alone.

There was some good news on the education front, courtesy of The White House:

“Today, President Obama called on the Federal Communications Commission to take the steps necessary to build high-speed digital connections to America’s schools and libraries, ensuring that 99 percent of American students can benefit from these advances in teaching and learning. He is further directing the federal government to make better use of existing funds to get this technology into classrooms, and into the hands of teachers trained on its advantages. And he is calling on businesses, states, districts, schools and communities to support his vision.”

The tl;dr read version: President Obama wants every student in America online. And he wants it to happen sooner rather than later.

Smart. Students today are better served by carrying a tablet rather than a backpack full of books, especially if they’re going to learn the skills they’ll need to play in the global economy and avoid future back pain.

But hitting the president’s mark will take more than words, especially with cities and school districts strapped for dough. Broadband networks don’t build themselves, which means continued private investment — and a regulatory environment that encourages it, both on the state and federal level — will be key.  Connecting 99% of students isn’t a moon shot, by any means, but it is a heavy lift. This means everyone, from government to business, needs to roll up their sleeves and work together to get it done.

As a strong proponent of preserving the Internet as a platform for communication and commerce kept free from burdensome regulation, I geeked out when I knew I would be spending time with the guy I perceived as leading the charge against our virtuous, sacred Internet.

I refer, of course, to the head of the International Telecommunication Union (“ITU”), Dr. Hamadoun Touré, who convened the World Conference on International Telecommunication (“WCIT”) late last year. I expected Dr. Touré to be the Internet’s equivalent of a goose farmer cultivating foie gras, force-feeding regulation down the Internet’s throat.

But for all the criticism heaped upon the ITU for its goals and process before, during and after the WCIT, I was surprised by a few of the notes Touré struck during his visit to Stanford University. During his keynote speech, Touré advocated for every single draconian proposed change to the world’s telecommunications laws, which was exactly what I expected from him. But what really stood out to me was his recognition of the need for updated communications infrastructure.

Touré spoke of all-IP (Internet protocol) networks springing up around the world and the need to embrace this technological advance as the next frontier in a hyper-connected world. He told the sold-out crowd that nations around the world are installing these IP networks with great success, spawning the creation of exciting micro-economies that didn’t previously exist. Touré implied that the U.S. has an opportunity to lap the rest of the world in terms of installing all-IP networks. Extrapolating on Touré’s statement, the U.S. must speed the transition in order to continue to stay ahead of the curve domestically while retaining our competitive edge globally.

Interestingly, while Dr. Touré seems to prescribe regulation as the solution to virtually every problem facing the Internet, his answer to the question of how to encourage faster and greater deployment of IP networks stands in stark contrast to that position. Oh the irony! He says the way to go is “light-touch regulation,” which limits the extent to which government should intervene with the management of the Internet ecosystem.

Obviously, I didn’t agree with everything Dr. Hamadoun Touré had to say over the course of the two-day Stanford symposium. However, I was thrilled to learn that the leader of the ITU is a vocal opponent of heavy regulations when it comes to transitioning the United States to the IP future we so desperately need.

Bananas.

That’s the best way to describe the current state of the wireless industry. Absolutely bananas.

Smartphones, tablets, LTE-enabled laptops, wirelessly connected cars… each day brings some new gadget, some new device tapping into the power of wireless networks. There are north of 300 hundred million people in the U.S., and according to Pew some 85% of them now own a cellphone. Of that group, 58% have upgraded to a smartphone. Do a little scribbling on the back of an envelope and you get something around 135 million people walking around with a wireless connection to the Internet in their pocket.

That’s a lot of people pushing out a lot of data. Billions of bytes, 24 hours a day. And all that traffic, all those bits and bytes and gigs, they all require spectrum to travel from points A to B, which is why wireless providers are currently on major shopping sprees. Investing billions to acquire more airwaves. Swapping frequencies in different markets. Working with the government to free up more spectrum in order to keep up with demand.

Earlier this month, T-Mobile merged with smaller provider MetroPCS. Early last week, satellite TV provider DISH Network pitched north of $25 billion to acquire wireless provider Sprint — a bid above what Japanese company SoftBank had also offered for the company. And those are just the two most recent moves. As mobile broadband continues to explode in popularity, there are going to be many more deals to come.

Call it a free market frenzy. A wireless lollapalooza, even. As the Federal Communications Commission continues to creep toward its proposed spectrum incentive auctions — which will, hopefully, free up a ton more spectrum for wireless use — providers aren’t waiting around. They can’t afford to. The wireless industry is one of our most vibrant sectors, and a big reason for that is competition. Even the biggest players are constantly forced to invest billions in order to meet the demands of their customers.

In such a highly competitive environment, the best thing the government can do is keep things from slowing down. That starts with ensuring the FCC auctions are open to every player willing to make the investment in — and quickly put to use — newly freed up airwaves. Hitting that mark will bring the government the most bang for its spectrum buck. It will also provide customers and the tech community with more robust networks. Ones that are able to keep up with innovations just around the corner.

The government can also help by encouraging wireless providers to work together in order to meet the challenge of ever increasing demand. As DISH’s flirting with Sprint shows, there’s no shortage of players hoping to get into the provider game. But even with the FCC’s auctions, it will take providers striking deals with each other to keep connections strong and the industry growing.

By focusing on smart oversight, regulators can protect consumers and maintain a vibrant wireless industry at the same time. That way, when it comes to the future of the industry,bananas will be just the beginning.