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Concept
Bandwidth allocation
Résumé
Bandwidth allocation is the process of assigning radio frequencies to different applications. The radio spectrum is a finite resource, which means there is great need for an effective allocation process. In the United States, the Federal Communications Commission or FCC has the responsibility of allocating discrete portions of the spectrum, or bands, to various industries. The FCC did this recently, when it shifted the location of television broadcasting on the spectrum in order to open up more space for mobile data. Different bands of spectrum are able to transmit more data than others, and some bands of the spectrum transmit a clearer signal than others. Bands that are particularly fast or that have long range are of critical importance for companies that intend to operate a business involving wireless communications.
The FCC generally uses auctions to allocate bandwidth between companies. Some economists believe based on Auction Theory, auctions are the most efficient method of allocating resources. Due to the differences in the amount of data each band can transmit and the clarity of the signal, auctions allow the more desirable bands to sell for more. The United States currently auctions off bands that then become the property of purchaser. The FCC spectrum auctions have multiple rounds of bidding, as opposed to each party submitting one sealed bid. The FCC, when auctioning multiple bands, auctions them simultaneously. This allows for a more efficient bidding process, and keeps bands being auctioned at the end of the auction from being over or under valued. An example of this practice was the 700 MHz auction in 2008. While this method raises billions of dollars for the government, there is concern that smaller companies may be priced out of the market and therefore rendered unable to compete with large firms. This would reduce the number of points of view in the communications industry, which would violate one of the principles of the FCC, to protect the public interest.
Source officielle
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