National Broadband Plan just the starting point for future broadband discussion

The National Broadband Plan delivered to Congress today calls for another 500 megahertz of spectrum to be freed up for wireless use by 2020, as well as an auction of D-Block spectrum and greater use of unlicensed spectrum.
Federal Communications Chairman Julius Genachowski has been releasing parts of the plan during the last few months so most of the broad policy goals included in the plan, including releasing more wireless spectrum and a nationwide public-safety initiative, have already been made public. How Congress reacts to the 376-page plan will be watched closely by industry going forward. Even the FCC noted in its comments that the plan will always be in “beta” mode since technology will continue to evolve.
Wireless industry trade associations CTIA and PCIA released public comments saying they are pleased with the plan. Venture capitalists and wireless carriers have been concerned that net-neutrality requirements would be included in the plan, which they argue would stifle innovation. “As a general rule, anything that would view the network as a commodity is pretty short sighted,” said Sal Tirabassi, a partner with M/C Venture Partners, a Boston-based VC firm that focuses on communications infrastructure investments between $10 million and $60 million.
While much of the plan focuses on wired broadband connections, two of the six long-term goals stated in the plan focus on wireless services: The United States should lead the world in mobile innovation with the fastest and most extensive wireless networks of any nation, according to the plan, and every first responder should have access to a nationwide wireless interoperable broadband public-safety network.
Regarding spectrum use, the plan calls for 300 megahertz to be released in the next five years. One of the more controversial recommendations in the plan would be to allow TV broadcasters to be paid from auction receipts to relinquish some of the spectrum they use for mobile services. In the past, all money received from spectrum auctions has been given to the U.S. Treasury. “Mechanisms (to access more spectrum) include incentive auctions, which allow auction proceeds to be shared in an equitable manner with current licensees as market demands change. These would benefit both spectrum holders and the American public. The public could benefit from additional spectrum for high-demand uses and from new auction revenues. Incumbents, meanwhile, could recognize a portion of the value of enabling new uses of spectrum. For example, this would allow the FCC to share auction proceeds with broadcasters who voluntarily agree to use technology to continue traditional broadcast services with less spectrum.”
The plan also recommends using Universal Service Fund proceeds for broadband development, and could include shifting up to $15.5 billion from USF to broadband initiatives. Further the plan calls for creating a Mobility Fund so that “no states are lagging significantly behind the national average for 3G wireless coverage,” since 3G coverage is the basis for 4G coverage, the FCC said. The plan also suggests that a block of spectrum be licensed with the condition that the licensee offer free or low-cost service, which is similar to a plan originally suggested in 2008 by M2Z Networks, which is headed by former FCC executive John Muleta. Interestingly, the FCC said only that Congress “consider” this suggestion. The plan also would expand the number of companies that pay into the USF fund.
The FCC says the plan will be revenue neutral as it uses funds from future wireless auctions to pay for other areas of plan, including the nationwide wireless public-safety network. As part of the plan, the FCC released a tool that consumers can use to check if their broadband access speeds are close to what broadband providers say they are. Going forward, the FCC wants to collect broadband information speeds for each region and publish them based on pricing and competition.