Apps Abound, But Spectrum's Scarce

In more ways than one, last month's Wireless 2000 show really did provide a look at the future: Wireless penetration at the convention center easily approached levels that many speakers predicted for North America over the next few years. Yet judging by the blocked calls in downtown New Orleans, accommodating that growth won't be easy.

But if remarks at the show are any indicator, the FCC appears sympathetic to spectrum shortages and anxious to work with the industry to remedy them.

"I believe the most serious challenge facing your industry today (is) the need for more spectrum," FCC Chairman William Kennard said. "The demand for spectrum is simply outstripping supply. Spectrum scarcity is the ultimate spectrum cap."

Although the FCC continues to appear unwilling to lift the spectrum caps, Kennard proposed alternatives, including a secondary spot market for unused spectrum.

"Today there is a spot market for wireline bandwidth," Kennard said. "If it can be done there, why not for wireless?"

His vision: an online clearinghouse to help pair licensees that have available spectrum with companies interested in using it to accommodate, for example, sporting events and shows such as Wireless 2000.

"I want the commission to work with the industry to make this happen," Kennard said.

A lot of questions would have to be answered to make that concept a viable solution.

"You're promising that a network will be available to the consumer when he wants it," said Chris Resavy, former Omnipoint senior director, technology. "If you're buying available timeslots, I think that consumers are going to be hurt because they don't have a dedicated service. If I'm a provider of that spare spectrum, what happens if I can't deliver it during the entire time frame that they need it (because) I need it for my own subscribers?"

Upcoming auctions of TV channels 60 to 69 and reclaimed C-block spectrum will provide relief but likely not enough, especially if all the show's predictions about bandwidth-hungry applications pan out. A proposal to revamp the digital-TV standard also could jeopardize broadcasters' ability to vacate that spectrum by 2006. Even so, Kennard sees more opportunities than problems.

"I urge incumbent broadcasters to voluntarily negotiate with incoming licensees so that this valuable spectrum can be used quickly to its maximum capacity," Kennard said. "While negotiations and voluntary agreements to accelerate moving to new assignments can be accomplished under existing case-by-case waivers, I would like to see an easier, more market-driven process." One example is a proposal to allow individual stations to move out of the band earlier via private auctions, which Kennard called "a very interesting and creative idea that deserves consideration."

Commissioner Susan Ness continued that theme of laissez faire, business-friendly alternatives during a roundtable session. Ness said that auction problems sometimes were due to deadlines that didn't allow the market to react in time and noted that Congress' aggressive schedule for auctioning TV channels 60 to 69 could affect business plans.

Although the commissioners had no easy remedies for wireless' growing pains, they at least seemed to feel that pain. But for all the criticism that the FCC and the rest of the federal government bears, it's tough to criticize wireless policy when you look at the results. As Greg Rohde, NTIA assistant secretary for communications & information, put it, "It's hard to make a case that something is seriously amiss."