Tuesday, February 12, 2013

Spectrum Always Matters

The Intelligent Transportation Society of America doesn’t want the Federal Communications Commission to free up spectrum in the 5.85 GHz to 5.925 GHz range, as part of its wider effort to clear 195 megahertz of 5 gigahertz spectrum band. The ITSA wants those frequencies reserved for in-vehcile communications.

If the ITSA gets its way, those portions of spectrum proposed for Unlicensed-National Information Infrastructure (U-NII) devices would be unavailable for other non-licensed applications.

That ITSA opposes spectrum sharing in the 5.85 GHz to 5.925 GHz band is not unusual. Spectrum access is the foundation for any business model using wireless communications. And spectrum exclusivity, when it can be obtained, also enhances the equity value of such businesses.

The ITSA language, though, is rather “soft,” suggesting ITSA would prefer exclusivity, but is not sure it can prevail, nor does it believe it cannot live with spectrum sharing.


Separately, Dish Network continues to say it will sell its Long Term Evolution spectrum if it does not win control of Clearwire (a prospect many believe is very close to impossible) or if it cannot find a partner to help it build a new national LTE network.

Both developments illustrate the key role regulators play in enabling communications business models and the potential profit from starting such businesses.

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