Competition In The Air

Forbes reports:

the U.S. Federal Communications Commission is about to free up the biggest chunk of airwaves in history, making room for a host of wonderful new wireless technologies--and ushering in another brutal bout of competition.

The first thick slice of the airwaves (officially called "the radio spectrum" or just "spectrum") will be auctioned off Aug. 9. Spectrum is the key natural resource required by all wireless technologies--AM, FM and satellite radio; broadcast and satellite television; Wi-Fi; cellphones; and many others. More spectrum means more capacity: clearer calls, sharper TV pictures, more channels.

The total amount of spectrum being auctioned off this month, 90 megahertz, is enough to create two new companies the size of Verizon Wireless, which currently provides service to its 55 million subscribers using roughly 42 megahertz of spectrum. (The airwaves, though invisible and intangible, are easily measurable. Just as oil is measured in barrels, quantities of spectrum are measured in megahertz.)

The Ronald Coase dream becomes a reality.