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Digital Television and the Quid Pro Quo

Published online by Cambridge University Press:  20 January 2017

Thomas W. Hazlett  and
Matthew L. Spitzer
Thomas W. Hazlett*
Affiliation:
American Enterprise Institute
Matthew L. Spitzer*
Affiliation:
Caltech and University of Southern California
*
American Enterprise Institute
Caltech, and Professor of Law, University of Southern California.
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Abstract

The recent zero-priced award of $11–70 billion in digital TV (DTV) licenses by the federal government occurred when auctions had been initiated for non-broadcast licenses and when the seven decade-old regime of ‘public trusteeship’ in broadcasting had become famous for licensee reneging on promised obligations. Policymakers nonetheless declined to auction DTV licenses when enacting the Telecommunications Act of 1996, rejecting a plea from the Senate Majority Leader. This paper provides an overview of the episode and investigates three basic questions. (1) Why does Congress continue a regulatory system that routinely fails to provide the benefits it is supposed to generate? (2) Why did the National Association of Broadcasters propose high definition television as a way of keeping land mobile operators off an unused spectrum? (3) Why did Congress delegate to the FCC the decision to award licenses for digital television broadcasting?

Type
Research Article
Information
Business and Politics , Volume 2 , Issue 2 , August 2000 , pp. 115 - 159
Copyright
Copyright © V.K. Aggarwal 2000 and published under exclusive license to Cambridge University Press 

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