At the 2011 state of the union, Obama began to hint at his
plan to “win the future”, which is being called the Wireless Innovations
Infrastructure Initiative. Revealing his plan in more detail at Northern Michigan
University on February 10th, the president’s aim is to
build out the nation’s high-speed wireless network.
What is it? The plan has three main goals:
- Expand “4G” wireless coverage to 98% of
Americans within the next 5 years
- Reduce the US deficit* by nearly $10 billion
over the next decade through the sale of 500MHz of federal wireless spectrum,
doubling the amount of spectrum available for mobile broadband
- Invest in the nationwide public safety network
for increased efficiency and security
*The White House press release says it will reduce the
deficit by $10 billion, but the math does not add up. The government is projecting that the spectrum auction will
generate $28 billion of revenue over an unspecified period of time. Of that amount, $3 billion will be
spent on the Wireless Innovation Fund, $5 billion will be spent on the
Universal Service Fund, and $10 billion will be spent on a public safety
network, totaling $18 billion.
That leaves $10 billion of revenue, which the press release indicates
will reduce the deficit by $10 billion.
This can be read two ways, either the deficit will be reduced by $10
billion each year for the next ten years, or the deficit will be reduced by $10
billion by the end of the next ten years, which implies a steady, consistent
decline in the deficit each year.
This seems to be grossly overstating the effect on the national debt,
which will actually only decrease by $10 billion. Read more »