No question that allocators artificially INFLATE rents, by restricting the supply of spectrum. They give away spectrum or sell it cheaply to speculators. They don't pressure large broadcast companies to put their spectrum hoards to use. They also unnecessarily withhold large sections of spectrum, and limit the use of private spectrum as technology changes. See http://www.newamerica.net/Download_Docs/pdfs/Pub_File_808_1.pdf and other articles on the New America Foundation website. Do allocators CREATE rents? There's an efficiency argument for creating private titles to spectrum, just as there is for private land titles, oil leases, or fishing rights. Restricting access to a scarce natural resource does generate rent. Georgists argue that while it may be more efficient to leave titles in private hands, the rent can and should be returned to the public in the form of lease payments or taxes. If the Federal Government were to lease spectrum at market, or tax its market value, spectrum hogs would be forced to use it or sell it. Rents would plummet, but not disappear. Polly Cleveland