Determined to free up 500MHz in spectrum for fixed and mobile broadband, the Obama Administration has waded into what promises to be a prolonged struggle among TV broadcasters, communications service providers and content companies, all fighting for slices of the valuable airwaves, given the financial and technological stakes involved.
On June 28, President Barack Obama said he wants 500MHz of federal and non-federal spectrum to be licensed to the FCC, and then made available for use, within a decade. Echoing the FCC’s National Broadband Plan, Obama said the added bandwidth will “trigger the creation of innovative new businesses, provide cost-effective connections in rural areas, increase productivity, improve public safety, and allow for the development of mobile telemedicine, telework, distance learning, and other new applications that will transform Americans' lives.”
But achieving that goal won’t come easily. The effort, analyst Jeff Silva of investment bank Medley Global said in a research note, “faces politically charged obstacles not easily resolved in the near term.”
For one thing, the FCC continues to square off against the public safety community over the D Block portion of 700MHz spectrum that didn’t sell two years ago. First responders want the holdings handed over to them, while the Julius Genachowski-led FCC is talking about again seeking qualified service-provider bidders for a 2011 auction. That dispute has put pressure on the Obama Administration, which has committed to fixing the communications problems that arose after the 9/11 terrorist attacks. At the same time, the Obama team wants to further next-gen innovation as the United States struggles to keep pace with the rest of the world.
Whatever happens, the government must make more spectrum available soon. Smartphones, tablet computers such as the Apple iPad, e-readers such as the Amazon Kindle and machine-to-machine initiatives for the smart grid are increasingly straining wireless networks. By 2014, such devices will account for more than 87 percent of total mobile network data traffic in the United States, ABI Research said in May. To deal with the looming crunch, the FCC a month ago opened 25 megahertz more of spectrum as it works to identify any more airwaves that can be added by the end of the year.
