IPcentral Weblog
  The DACA Blog
  Institutions
     
  Tanks
     
  Blogs
     
  Mags
     

Tuesday, August 23, 2005

 
Spectrum Driving Innovation in Business Models
(previous | next)
 

This morning, a panel is tackling the issues of "Property Rights in the Air: Approaches to Spectrum Reform."

Most interesting set of legal questions I've heard so far just came from Tom Sugrue, VP at T-Mobile. Tom brought up the negotiations his firm is having with some airports. They believe they have arrangements to be the singular provider of broadband within some of the airline clubs through the unlicensed spectrum. Yet, the airline clubs lease space from the airport or airport authority. So, who has the ability to contract with and enforce the right of T-Mobile to be that provider?

In other contexts, T-Mobile provides broadband on an exclusive basis at Starbucks stores. Starbucks owns the storefront and can make the exclusive deal. Airports, in the best sense, ought to be profit making entities. Their management incentive is to earn revenue from their renters as well as from other services provided (parking comes to mind). Thus, a real tension has developed because travelers demand access to Wi-Fi and potential providers want to capitalize on the demand.

A market should be able to work out the problem. The airline clubs should be willing to pay a premium to the airport in order for the airport to set the conditions that allow the airline clubs to have a deal with T-Mobile. But new contracts take time to negotiate and implement. In the interim, the availability of unlicensed spectrum spurs innovation in the technology as well as in the business models of many organizations – from Starbucks and WalMart to airports and other more "public" areas.

posted by @ 1:25 PM | Economics , Innovation , Spectrum

Link to this Entry | Printer-Friendly | Email a Comment | Post a Comment(0)

Post a Comment:





 
Blog Main
PFF Blogosphere Archive
Archives by Month
  May 2008
April 2008
March 2008
February 2008
  - (see all)
Archives by Topic
  - A La Carte
- Antitrust
- Broadband
- Cable
- Campaign Finance Law
- Capitalism
- Capitol Hill
- China
- Commons
- Communications
- DACA
- Digital Americas
- Digital Europe
- Digital Europe 2006
- Digital TV
- E-commerce
- Economics
- Electricity
- Energy
- Events
- Exaflood
- Free Speech
- Gambling
- General
- Generic Rant
- Global Innovation
- Human Capital
- Innovation
- Internet
- Internet Governance
- Interoperability
- IP
- Local Franchising
- Mass Media
- Monetary Policy
- Municipal Ownership
- Net Neutrality
- Online Safety & Parental Controls
- Privacy
- Software
- Spectrum
- Sports
- State Policy
- Supreme Court
- Taxes
- The FCC
- The FTC
- Think Tanks
- Trade
- Universal Service
- VoIP
- Wireless
- Wireline
Site Feed
  - Atom
- RSS 1.0
- RSS 2.0
We welcome comments by email - look for a link to the author's email address in the byline of each post. Please let us know if we may publish your remarks.
 










The Progress & Freedom Foundation The Progress & Freedom Foundation The Progress & Freedom Foundation