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Save the taxpayer from the latest net neutrality spectrum scam

Today's WSJ editorial page hits the free-market nail on the head once again in its lead editorial: "The Spectrum Game"; it's about the FCC's upcoming decision on how to auction the 700 MHz of spectrum that is considered by the market to be "the Riviera beachfront property" of all spectrum potentially available.

  • WSJ: "... Like Mr Hundt, they know such conditions [like net neutrality] might scare off auction competition and increase the chances of Frontline grabbing the licenses for a song."

WSJ understands this is the most valuable spectrum the FCC has ever auctioned.

  • Naturally this valuable spectrum has spawned a cottage industry of policy entrepreneurs who want to figure out a way to divert the billions of dollars due the American taxpayer under the law -- to their companies' coffers. 
  • They try to justify this multi-billion wealth transfer from the American taxpayer to companies by saying it would forward a "popular" net neutrality mandate, a social-engineering policy which Congress specifically rejected mandating only last year.    

I hope the FCC is wise enough to see through this net neutrality spectrum scam, and not effectively bypass Congress' authority by effectively legislating corporate spectrum entitlements unauthorized by Congress.

To guard against charges that there is an-under-the-table transfer of billions of dollars due the American taxpayer under the law, the FCC needs to be completely transparent and upfront about the implications their decisions have on auction proceeds.

  • If the FCC were to somehow amend the auction rules with a net neutrality mandate for some of the spectrum, the FCC should, at a minimum, be very explicit about what authority they are using and what the justification is for why the American taxpayer should not receive top dollar in the auction for this spectrum.
  •  It is telling that the same companies like Google that support the Frontline net neutrality spectrum scam on taxpayers also want the consumer foot the entire bill for upgrading the Internet.

Bottom line: At its core, net neutrality is a corporate welfare scheme:

  • to force the average consumer to fund the costs of bandwidth hogs; and 
  • to force the American taxpayer to fund corporate welfare for corporations who don't want to pay market value for their competitive business inputs.



  • "Mr Hundt