Bush Administration Proposes Taxing Unlicensed Spectrum (Updated)
Feb 6, 2006, 10:55 PM by (staff)
In its 2007 budget proposal, the Bush Administration has included a vaguely worded proposal to tax unlicensed spectrum. Claiming that service providers are taking advantage of unlicensed spectrum to avoid licensing fees, the item suggests "user fees" on "un-auctioned" spectrum could raise $3.5 billion by 2010. However there is no clarification on what that fee would be or if manufacturers or end users would pay it. Both Bluetooth and Wi-Fi operate in unlicensed 2.4 GHz spectrum. Many cordless phones operate in this same band or unlicensed 900 Mhz or 5.8 GHz spectrum. Separately the Bush Administration also predicted spectrum auctions could bring in $25 billion by the end of the decade as well. Update: According to the Office of Management and Budget (OMB), the administration has no intention to tax unlicensed spectrum technologies such as Bluetooth, cordless phones and especially Wi-Fi. Instead the technologies the administration was referring to in their proposal are satellite companies, taxi dispatch services and other industrial uses that have taken advantage of the free bands.
more info at RCR News »
more info at Reuters »
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