Texas Border Business
Hispanic-owned businesses and entrepreneurs contribute greatly to the flourishing economy of Texas. In fact, the most recent survey of Business Owners reports that there are nearly 450,000 Hispanic-owned firms in Texas, generating over $60 billion to the state’s economy every year. But, many of these businesses are having trouble effectively reaching their target markets and audiences.
According to a University of Texas at Austin study, one of the most critical challenges facing Hispanic-owned businesses in Texas is gaining better access to markets and consumers. Fortunately, broadband and innovative wireless technologies can be an equalizer and a big part of the solution to this challenge.
Through expanded and enhanced access to the high-speed broadband Internet connections that empower innovative mobile applications and connections, Texas’ Hispanic-owned businesses can expand their business reach regionally, nationally and even globally by being able to sell their products or services online.
However, due to increased consumer and business demand for mobile data, wireless carriers’ networks are increasingly congested. This means there is less capacity on their networks to deliver quality connectivity and support all of the innovative mobile technologies that can empower our Hispanic-owned businesses.
The federal government can help solve this issue by agreeing to free more airwaves – or “spectrum”- for consumer use. With the exception of a small wireless spectrum license this year, no airwaves have been freed for consumer mobile use since 2008. The world of wireless technology and the demand for mobile data on carriers’ networks has changed tremendously since then. At the time, tablets didn’t exist and Apple had just launched its mobile app store.
Carriers will continue facing a “spectrum crunch” on their networks as Americans move rapidly to newer wireless technologies. In fact, nearly 40 percent of all U.S. homes, 50 percent of all Hispanic homes, and 45 percent of all Texas homes are now “wireless-only.”
This hunger for increased mobile data has increased and will continue to place additional stress on carriers’ networks. Our federal regulators need to apportion more airwaves for consumer use to ensure that our communities’ and businesses’ needs for increased connectivity can be met. Federal officials must then ensure that this wireless spectrum is auctioned through fair competition that allows all carriers to bid for the access they need.
Four prominent Democrats from Texas, U.S. Reps. Henry Cuellar of Laredo, Joaquín Castro of San Antonio, Filemon Vela of Brownsville, and Pete P. Gallego of Alpine, along with nearly 80 other members of Congress, seem to understand the importance of allowing all carriers to bid in the FCC spectrum auction. Two weeks ago, this group wrote to the FCC emphasizing the need to license mobile spectrum.
Their letter stressed the importance of ensuring licensed airwaves for mobile broadband are available in an open and accessible fashion. The only way to guarantee that, these lawmakers said, is for the FCC to invite “as many bidders as possible to compete in an open and fair auction on equal terms.” FCC hearings on Thursday will address the auction question, as well as how the mobile spectrum will be licensed.
As a native Texan and still a Texas resident, I commend these members of Congress who understand that this spectrum auction will have far-reaching impact, not just on carriers but also on wireless users and businesses – like those found in the Lone Star State. Anything other than an open and fair auction could cost the federal government billions of dollars in lost revenue and ultimately disadvantage wireless users and businesses.
Federal spectrum policy has huge implications for jobs, economic growth and social improvement – especially for our communities and businesses. In the upcoming wireless auctions, all carriers should be allowed to bid freely and unfettered by excessive restrictions.
Palomarez is president and CEO of the United States Hispanic Chamber of Commerce
