CHANGE IS IN THE AIR(WAVES)

The issue of spectrum management reform is not new, but there's a new twist this year: The nation's chief telecom regulator is seriously considering proposals that, if instituted, would radically alter the Federal Communications Commission's role as regulator of the airwaves.

FCC Chairman Michael Powell has called for a new approach to spectrum management in which new technologies would “ultimately free spectrum from its former shackles” and transform the patchwork system of spectrum allocation into a more coherent and efficient process. At the crux of the matter, though, is a simple question: Do we need regulators to decide how each slice of bandwidth is used, and by whom?

Powell believes new frequency-agile radio technologies could enable new classes of wireless services to gain access to bigger chunks of spectrum. A 2002 FCC task force report recommends action it says would lead to more efficient spectrum use and allow virtually anyone to access the airwaves without prior FCC approval as long as they don't interfere with existing licensed uses.

For decades, our government has operated under the assumption that the demand for spectrum exceeds supply, and consequently that a “command-and-control” method of spectrum management is required. However, innovation in wireless technology and the emergence of new and unpredictable spectrum uses make that model more difficult to justify and bolster the case for wide-ranging reform that would allow opportunistic uses of underused spectrum.

Powell has set in motion a process that could reverse decades-old practices and pit technologists and entrepreneurs against established service providers. He rightly says the current “one band, one use” regime can stifle progress. But current licensees have invested billions to buy licenses and build networks on the assumption of operating in a stable regulatory environment. They are understandably worried about spectrum uses that could devalue their assets and interfere with their operations.

The debate over Powell's new spectrum policy paradigm will begin to take shape this year, but don't hold your breath for quick resolution. There are too many unknowns.

Both incumbent licensees and prospective new spectrum users have a lot to gain or lose. Don't look for the FCC to come down squarely on one side or the other. As the battle progresses, the commission will likely try to give new spectrum technologies a chance and also keep existing wireless services from being degraded. Score another one for the lawyers and lobbyists.