Level of Investment Should Factor Into FCC Spectrum Policy, Phoenix Center Says

should favor those licensees with more ‘skin in the game,’” said co-author and Phoenix Chief Economist George Ford in a news release. “While federal agencies must repurpose spectrum to create value, they also must avoid destroying value through the unartful management of interference.” The FCC must avoid any repurposing of spectrum that doesn’t take into account the significant investments of network operators, the center said. Otherwise, companies will cut their investments and the value of the spectrum will also deteriorate, the center said. “The Center’s model of interference dictates that license holders who have made little or no sunk investment in capital to generate benefits from their license would receive little relief under an optimal rule, but those licensees with substantial sunk network investments would receive expansive treatment by the regulator.” The paper offers as an example the “saga” of LightSquared, since rebranded Ligado. “Ligado has labored for years to repurpose 40 MHz of satellite spectrum for terrestrial mobile broadband use, thereby increasing the spectrum’s market value,” the paper said. “However, Ligado’s proposal has been held up by serious and ongoing interference concerns.” Ligado "will review today’s report closely, but at first glance, it does not appear to contain any new or updated information,” an official said. “We have demonstrated that we are committed to working collaboratively with all stakeholders. ... We are confident that our planned satellite and ground-based network can peacefully co-exist with our spectrum neighbors.”