Just imagine if the winner of the 1 GHz LMDS license decided to warehouse that spectrum for ten years instead of offering a new service. Economists tell us we should permit spectrum warehousing. I agree with Congress. Seriously, spectrum involves complex technical considerations. Spectrum policy needs to take into account the differing characteristics of radio waves at different frequencies and the many ways in which use of one frequency can impair operation of a different service at another frequency.
Economists have a lot to contribute to the development of spectrum policy.
But so do engineers. We neglect them at our peril. Particularly in the auction environment, business plans are made and commitments signed weeks and months in advance of auction. Revisions intended to benefit bidders may have the opposite effect. Worse, marketplace behavior may begin to reflect the assumption that our rules will continue to evolve and that there is no need to comply with those already on the books.