Friday, August 16, 2013

U.S. Licensed and Unlicensed Use of White Spaces Hangs in the Balance

As the U.S. Federal Communications Commission prepares rules for repurposing some broadcast TV spectrum (TV white spaces) no longer used, one key issue is the method of licensing. 

Some believe the best way to commercialize the TV white spaces spectrum is to auction most of the frequencies. Others believe it is vital to preserve significant amounts of that white spaces spectrum for unlicensed use, using the prior example of Wi-Fi as an example of innovation that should arise.

As always, there are huge commercial implications. As always, major users of licensed spectrum will prefer a licensing method. As always, many others think the greatest amount of innovation will occur if an unlicensed model is used.

Given the huge commercial implications, many believe only portions of the spectrum actually will be available on an unlicensed basis. 

There are valid arguments for both points of view (licensed versus unlicensed access). A licensed approach will help mobile service providers; an unlicensed approach will help all sorts of innovators and entrepreneurs, with mostly indirect economic benefit, as with Wi-Fi.

Some think the best outcome would be a mix of licensing, with significant amounts available on an unlicensed basis. 

Since most broadcast TV spectrum tends to be used in bigger markets, the amount of available white spaces spectrum will be most limited in dense urban areas, and most abundant in rural areas where there are fewer people.

So one key issue is how much usable spectrum might be available on a nationwide basis, consistently enough to provide incentives for services, devices and apps to be created that are usable everywhere. 

Innovation without permission is how some would describe the advantages of unlicensed approaches to use of spectrum. 

Some might say it is clear both mobile services based on licensed spectrum, and Wi-Fi style services, apps and devices based on unlicensed spectrum are complementary and strategic ways to clear and commercialize new frequencies. 




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