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Obama's budget calls for new wireless spectrum fees
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President Obama proposed new wireless spectrum licensing fees in his budget outline on Thursday. This move could potentially bring in as much as $4.8 billion in revenue over the next decade.
In his budget outline for the fiscal 2010 year that begins in October, Obama proposed that wireless carriers pay new fees to license spectrum from the government. The fees would start out at $50 million in 2009, go up to $200 million in 2010 and jump over the next decade to $550 million per licensee per year.
These fees would come on top of license fees that the carriers have already paid to the government in previous spectrum auctions. In the most recent major auction--the 700 MHz block last year--the government raised a record $19.6 billion from wireless companies, most notably Verizon Wireless and AT&T Mobility.
The Tier 1 wireless carriers--AT&T, Sprint Nextel, T-Mobile USA and Verizon--have not yet commented on the proposal, but are likely to oppose the measure. The wireless industry has voiced strong opposition to previous proposals to tack on additional spectrum licensing fees. Any changes to licensing fee structure would require legislation.
CTIA, the wireless industry trade association, said on Thursday that it had not yet staked out a position on the proposal. "We are currently reviewing the details of the proposal and look forward to participating in the next stages of this issue," CTIA said in a statement.
For more:
- see this article
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Comments
Posted by Fred Reyes | February 27, 2009 - 3:31pm
Obama, haven't you done quite enough already.
No-BAMA!
Leave well enough alone. Don't you have a better plan than to gring new fees to already fee hammer families and businesses. The next thing you'll want to tax is the entire internet and everthing on it. Why just not go back and retro-charge every technology since the Dot-coms?
Say it it isn't so Joe & O!
There is no hope!
F Reyes
Texas Republican
Posted by Maggie | February 27, 2009 - 4:43pm
Unbelievable! Mr. Obama is very busy devising new and not-so-new (Russia has already concept proofed them) ideas on how to stifle industry and business. This is yet another way that government, that creates nothing, will hinder growth in another industry, thereby cutting growth in the economy. In plain terms, more fees, less profit,less new jobs, less tax revenue from people with jobs that pay taxes. Great strategy!
Posted by Anonymous | February 27, 2009 - 5:10pm
Whoever complains about this has not looked into the detail.
Please try and do that before commenting.
Stupidity at its best is when smart people assume they know something.
Posted by Anonymous | February 27, 2009 - 5:15pm
This would cause spectrum hogs to release their stock pile and create competition. Recognize that this will not be a "law" or permenant. The author included something in his passage that is very telling about the motivation of the administration. I quote: "The wireless industry has voiced strong opposition to previous proposals to tack on additional spectrum licensing fees. Any changes to licensing fee structure would require legislation." This is a short term action like the unemployment benefits. You asked for short and long term solution from this administration and you are getting them. Because you can't recognize them is your own fault.
Posted by Anonymous | February 28, 2009 - 10:19pm
You 53% voters who put this guy in office should be very quiet when the slip you the Big Tax Weenie..
Higher fees to business, means higher prices to consumers...dahh Were you all having a blonde moment in November?
Posted by Anonymous | March 2, 2009 - 8:20am
This is not a good strategy telecommunication sector already facing so many problem.this is the time to retain otherwise people go out of market.
Posted by Anonymous | June 15, 2009 - 1:31pm
To the stupid taxbama supporters. IDIOTS!! If they levy the fees/taxes against the current spectrum holders the cost will simply be moved to the end user. Why would a (spectrum hog) release any of their holdings. Dumbass, if you own the whole block who cares if the taxes are raised? The consumer will have no choice but to ante up the difference.
And to you kool aid sucking idiot short term solution feeb, when have you everrrrrrr seen taxes like this go away or down? I'm waiting, If all carriers are taxed equally they will all react by cutting costs/jobs and then raising end user fees to compensate. There's no glaring incentive to release spectrum and even if they did ( WHAT START UP COULD BUILD A SUCCESSFUL PLAN WHILE ACCOMMODATING THE NEW BURDENSOME TAXES) And what are these fees supposed to do anyway all I saw mentioned was (raise more money for the kenyan to waste) I love the way it says the government raised xx billions through these fees. You sick twisted FU@#$, they did not rais sheet. The innovative companies providing a service raised money that the government stole a portion of simple as that.
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