Bush proposes tax on unlicensed spectrum

President Bush has made proposal to support legislative changes that would allow the Federal Communications Commission to tax "un-auctioned" radio spectrum in his budget plan for 2007, which faces a huge budget deficit. This tax, which seems to be targeting unlicensed frequencies, used for Wi-Fi and other applications, is expected to raise about $3.6 billion by the year 2010. Although the president mentions "user fees" in his proposal, it's not clear whether it would be paid by manufacturers or end users. The sum, which the tax would amount to, is not known either. On the other hand, Bush administration expects spectrum auctions to bring about $25 billion between 2007 and 2009.

Source: RCR Wireless News; Reuters