This proposed solution on WCS spectrum, which is still under review by the FCC, effectively creates much-needed new spectrum capacity.

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The company witnessed a number of positive developments last quarter and offers service providers a complete solution across the access spectrum, from DSL and cable to PON.

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The ideal solution would be to enact spectrum reform that frees up larger swaths of the electromagnetic spectrum to be allocated by market forces.

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Technological progress is not the only reason why spectrum markets would be a second-best solution, Mr Benkler argues.

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So the near-term solution is for companies that need additional spectrum to acquire or merge with wireless providers that have spectrum.

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The government has the perfect solution sitting under its nose but that spectrum is currently reserved for military use, according to Mr Walker.

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The longer-range solution is for the federal government toc re-purpose unused and underused radio spectrum for mobile broadband purposes.

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As long as the FCC fails to inject major amounts of spectrum into the marketplace, or strongly hints that future spectrum could be off limits to carriers with specific spectrum portfolios, the agency leaves companies facing capacity shortages in the near term with no solution other than secondary market purchases or to raise retail prices.

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If spectrum were scarce by some law of nature, they argue, selling licences would certainly be the best solution.

ECONOMIST: Economics focus