Privately owned spectrum and the Chavez government May 28th, 2007
Hugo Chavez demostrates why the wonkish concept of privately owned, tradable spectrum rights are actually an important democratic right:
Venezuela’s oldest private television station has gone off the air as thousands banged on pots and pans in protest against a decision by President Hugo Chavez that did away with a popular opposition-aligned channel. Fireworks exploded across Caracas as crowds of Chavez’s supporters celebrated his decision not to renew Radio Caracas Television’s license and instead to award it to a new public service station.
Chavez, of course, did not shut down the station, but instead declined to renew its license. A key distinction. Because the airwaves have already been nationalised (as they have been for nearly a century around the world) the Chavez government decision not to renew the license is a theoretically legitimate, if illiberal, one.
This example of the power the the power to licence grants government is extreme, and in Australia, the risk is remote. But there are still dangers for liberal democracies when governments hold the ultimate decision whether a broadcaster can actually broadcast. James Gattuso’s Heritage Paper on the US Fairness Doctrine opens with two quotes demonstrating political desire, if not willingness, to manipulate with broadcasters by threatening their licences:
“Our massive strategy was to use the Fairness Doctrine to challenge and harass right-wing broadcasters and hope the challenges would be so costly to them that they would be inhibited and decide it was too expensive to continue.”
- Bill Ruder, Democratic campaign consultant and Assistant Secretary of Commerce, Kennedy Administration“The main thing is the Post is going to have damnable, damnable problems out of [its Watergate coverage]. They have a television station…and they are going to have to get it renewed.”
- President Richard Nixon
At Technology Liberation Front, Gattuso also provides the contemporary context of the renewed push for a modern Fairness Doctrine, noting that it is partially a response to the perceived conservative domination of the talk back radio industry. The Democratic Party wants to regulate away its ideological competition.
There are many other desirable features of privately owned spectrum, but it doesn’t hurt to remember the big one. As Chavez has now so starkly demonstrated, the government’s power to licence broadcasters is also the power to control them.



