Wireless Architectural Alternatives: Current Economic Valuations versus Broadband Options, The Gilder Conjectures

There has been an assumption that spectrum can be divided into segments and then auctioned off. It has been assumed that this is optimal in terms of its benefit to the public and that the FCC in so doing is optimizing the public good. There has been an alternative conjecture, termed the “Gilder” conjecture, that segmenting bandwidth is not the best means and that using all of the bandwidth amongst all of the users maximizes the public good. This paper considers the “Gilder” Conjecture and demonstrates what can be done with spectrum, independent of auctions under the auspices of implied territorial ownership. The paper presents the most recent theoretical results on optimal spectrum allocation. The paper then proceeds to discuss what is truly achievable in the contest of today’s technology. The paper finally summarizes the financial and policy implications of this radically new approach to spectral utilization and what new options this may open for the regulatory bodies.