CBO
TESTIMONY
Joint Statement of
David H. Moore, Senior Analyst
and
Perry C. Beider, Principal Analyst
Natural Resources and Commerce Division
Congressional Budget Office
on
Digital Television
before the
Subcommittee on Telecommunications and Finance
Committee on Commerce
U.S. House of Representatives
March 21, 1996
NOTICE
This statement is not available for public release until it is delivered at 9:00 am (EST), Thursday, March 21, 1996. |
Mr. Chairman and Members of the Subcommittee, I am pleased to appear
before you to discuss the Congressional Budget Office's (CBO's) estimates
of the receipts that might be generated by two proposals associated with
television broadcasting technologies. For simplicity, I will refer to those
proposals as Option I, technically known as the "analog return proposal,"
and Option n, sometimes called the "second-channel auction." My testimony
today makes three points.
- First, the radio spectrum is a valuable public resource. Auctioning licenses
permitting use of the spectrum ensures that those licenses are granted
to the parties who value them most and makes a substantial contribution
to federal receipts. The Congress may choose among many different options
in trying to capture those receipts to reduce the deficit. Prominent among
the options are two proposals that direct the Federal Communications Commission
(FCC) to pursue different strategies in moving the nation to a new television
broadcasting technology.
- Second, we stand at a fork in the road to the television of the future.
The proposals discussed here today will lead to different allocations of
a valuable part of the radio spectrum. The most important factors in choosing
a course for the future are that the ultimate allocation of the spectrum
produce the most value for society and that the benefits of transition
be equitably shared among broadcasters, viewers, and taxpayers.
- Third, although federal receipts are an important factor in choosing a
strategy for transition, the uncertainties involved in estimating spectrum
receipts make CBO's estimates for the two proposals so close as to be indistinguishable.
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