So Long Genachowski: A To-Do List for the FCC's Next Chair

On May 17, Federal Communications Commission Chair Julius Genachowski will clean out his desk at the agency, leaving his successor with a laundry list of pressing and unresolved issues. So which problems should the new FCC chairman tackle first?

The Open Technology Institute (OTI) recently convened a panel of representatives from the public interest community and the wireless carrier industry to discuss the next chairman’s priorities, the state of the wireless market in 2013 and other critical  issues at the Commission. Here are six key takeaways:

Market Consolidation:  The panelists agreed almost unanimously on the lack of competition in the wireless market--with the exception of T-Mobile’s Steve Sharkey. Rebecca Thompson of the Competitive Carriers Association noted that together, AT&T and Verizon hold between 75 percent to 85 percent of prime spectrum, a rate of market dominance that is much higher than the top two players in the majority of industriesPanelists identified access to spectrum, access to networks, and access to devices as necessary for a competitive wireless marketplace.

Spectrum Reallocation: Many recommended that the Commission promote fair rules for auctions and prevent excessive spectrum concentration. Spectrum auctions, in which the government auctions the right to transmit over specific bands of spectrum, determine the extent to which carriers can operate in given markets. Steve Sharkey noted that as consumer demand for data services continues to grow, access to spectrum is crucial for wireless competition as it allows more carriers to provide services to a given consumer base. Michael Calabrese, Director of the Wireless Future program at the New America Foundation, identified the incentive auction process and federal spectrum sharing as mechanisms to promote access to spectrum. Calabrese also advocated for a “use it or share it” approach to spectrum whereby bands not being used in certain areas could be used by others until the licensee builds out. 

Unlicensed Spectrum:  Panelists also discussed the potential of unlicensed spectrum. Unlike licensed spectrum, which can only be used by an assigned licensee, unlicensed spectrum can be used by any innovators and consumers who follow certain technical guidelines. Calabrese and OTI Director Sascha Meinrath highlighted the potential of unlicensed spectrum in un-served and underserved areas. In these communities, leveraging unlicensed spectrum would allow new carriers to provide crucial wireless services. . Free Press’s Matt Wood emphasized the innovative potential of unlicensed spectrum.Innovators have used unlicensed to deliver offerings ranging from Wi-Fi hotspots to medical equipment to wireless keyboards.

Mobile Handset Interoperability: Thompson noted that interoperability – the ability to use one’s mobile device across all US cellular services rather than one specific carrier -- is crucial for smaller carriers. Thompson highlighted that costs to interoperability are minimal whereas the benefits are enormous. Restoring interoperability is in the interest of consumers and emerging carriers, panelists noted.

Prison Phone Justice: Steven Renderos of Center for Media Justice linked exorbitant prison phone costs to larger issues of competition and access in the industry. Renderos pointed out that it’s cheaper to call Singapore than receive call from prisoner, citing an average cost of 20 dollars for a 15-minute call. Two or three companies dominate the prison phone industry, which receives contracts through a problematic and non-competitive bidding process. Given the egregiously high rates charged for these calls and the impact on primarily low-income communities who are already marginalized, Renderos flagged prison phone rate reform as a critical issue for the FCC.

Open Data and Rigorous Research: Finally, Matt Wood noted that the FCC never realized its vision of data-driven research to drive key decisions. We need data to analyze and foster competition, Wood argued. If the FCC makes data surrounding pricing, broadband deployment, and other factors open transparent to researchers, it will be much easier to make informed, data-driven recommendations for promoting competition.

This post originally appeared on In The Tank, a blog from the New America Foundation.