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business1d ago
How to Align Incentives to Accelerate Spectrum Productivity
- ITIF proposes using Dominant Assurance Contracts to fund upfront spectrum reallocation costs and speed deployment.
- DACs could let incumbents receive funding upfront to accelerate relocation and retrofits in the spectrum reallocation process.
- The plan suggests a Threshold funding amount and a 34% per-carrier contribution to trigger the Fast Retrofit Plan.
- If the Fast Retrofit Plan succeeds, fast retrofits would enable quicker access to spectrum and higher-performing altimeters.
- The DAC model relies on bonds and a credible fail prize to prevent free-riding and ensure funding commitments.
- The proposal uses the upper C band and aviation altimeter upgrades as a case study for acceleration.
- The report acknowledges risks, including coordination failures and potential misallocation of upfront funds.
- The paper argues that DACs can coordinate activities and credibly pledge payment in case of failure.
- The blueprint includes a six-step FRP process with milestones, penalties, and auction interplays.
- Carrier-level analysis shows a dominant strategy to contribute under the DAC framework.
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