Cell phone mania forces scramble for more airwaves

Dec 27, 2009  1:27 PM (ET)

By JOELLE TESSLER
Associated Press

http://apnews.myway.com//article/20091227/D9CRQE880.html


WASHINGTON (AP) - Wireless devices such as Apple's iPhone are 
transforming the way we go online, making it possible to look up driving 
directions, find the nearest coffee shop and update Facebook on the go. 
All this has a price - in airwaves.

As mobile phones become more sophisticated, they transmit and receive 
more data over the airwaves. But the spectrum of wireless frequencies is 
finite - and devices like the iPhone are allowed to use only so much of 
it. TV and radio broadcasts, Wi-Fi networks and other communications 
services also use the airwaves. Each transmits on certain frequencies to 
avoid interference with others.

Now wireless phone companies fear they're in danger of running out of 
room, leaving congested networks that frustrate users and slow 
innovation. So the wireless companies want the government to give them 
bigger slices of airwaves - even if other users have to give up rights 
to theirs.

"Spectrum is the equivalent of our highways," says Christopher 
Guttman-McCabe, vice president of regulatory affairs for CTIA-The 
Wireless Association, an industry trade group. "That's how we move our 
traffic. And the volume of that traffic is increasing so dramatically 
that we need more lanes. We need more highways."

That won't happen without a fight. Wireless companies are eyeing some 
frequencies used by TV broadcasters, satellite-communications companies 
and federal agencies such as the Pentagon. Already, some of those groups 
are pushing back.

That means tough choices are ahead. But one way or another, Washington 
will keep up with the exploding growth of the wireless market, insists 
Rep. Rick Boucher, D-Va. He is sponsoring a bill that would mandate a 
government inventory of the airwaves to identify unused or underused 
bands that could be reallocated.

"It's not a question of whether we can find more spectrum," says 
Boucher, chairman of the House Commerce Subcommittee on Communications, 
Technology and the Internet. "We have to find more spectrum."

CTIA, the industry group, is asking the government to make an additional 
800 megahertz of the airwaves available for wireless companies to 
license over the next six years. That would be a huge expansion from the 
industry's current slice of roughly 500 megahertz. The Federal 
Communications Commission is preparing to make more frequencies 
available for commercial use, but has just 50 megahertz in the pipeline.

Two trends are driving the demand.

First, advanced new wireless applications - such as mobile video and 
online games - devour far more bandwidth than voice calls or basic text 
messages, says Neville Ray, senior vice president for engineering 
operations for T-Mobile USA Inc.

Second, consumers are flocking to wireless Internet connections, in some 
cases dropping landline accounts altogether. ABI Research projects U.S. 
mobile broadband subscriptions will climb to 150 million by 2014, up 
from 48 million this year and 5 million in 2007.

The predicament, says Jamie Hedlund, vice president of regulatory 
affairs for the Consumer Electronics Association, is that many users 
"assume the wireless experience should be the same as the wired 
experience, but the capacity is just not there for that."

The industry's concerns are finding a sympathetic ear in Washington.

Julius Genachowski, chairman of the FCC, says finding more room for the 
wireless industry will be an important part of his agency's broadband 
plan. That plan, mandated by the 2009 stimulus bill, is due in February 
and will propose using wireless systems to bring high-speed Internet 
connections to corners of the country that are too remote for landline 
networks.

"If we are going to have a world-leading broadband infrastructure for 
the nation, wireless is an indispensable ingredient," says Genachowski 
aide Colin Crowell.

Lawrence Strickling, head of the National Telecommunications and 
Information Administration, the arm of the Commerce Department that 
manages the federal government's use of the airwaves, says the agency is 
also hunting for more frequencies the wireless industry can use.

Some of the crunch can be addressed with technologies that make more 
efficient use of airwaves and new equipment that lets users share bands. 
The FCC also wants to promote greater use of frequencies that aren't 
licensed to anyone, such as the "white spaces" between the bands used by 
TV channels.

But such solutions alone won't solve the crisis, the wireless industry 
warns.

The FCC's attention for now is on TV broadcasters, which hold nearly 300 
megahertz of airwaves that are mainly used to serve just 10 percent of 
American homes - those that still rely solely on over-the-air TV signals.

The FCC is exploring multiple options, most of which would leave 
broadcasters with enough capacity to deliver a high-definition signal 
over the air. One possibility, which might require congressional 
approval, is a voluntary program that would let broadcasters sell excess 
bandwidth through an auction, to either the government or directly to 
wireless companies. Although the FCC awarded spectrum licenses to 
broadcasters for free many years ago, those licenses are worth millions 
today.

"Fewer people are getting over-the-air TV and at the same time, more and 
more people are using mobile broadband," says Blair Levin, the official 
overseeing the FCC broadband plan. "So it only makes sense ... to get 
that asset into the hands of whomever can realize its greatest value."

The idea faces opposition from the powerful broadcast lobby. Dennis 
Wharton, executive vice president of the National Association of 
Broadcasters, says the proposal would stunt the industry's plans to make 
innovative use of the airwaves that became free when it turned off 
analog broadcasts and went entirely digital in June. Broadcasters have 
already returned more than 100 megahertz of those airwaves to the 
government and plan to use the rest to transmit high-definition signals, 
"multicast" multiple channels and deliver mobile TV to phones, laptops 
and cars.

"The FCC proposal would kill many of our future business plans in the 
cradle," Wharton says.

Wireless carriers are also setting their sights on frequencies held by 
companies that deliver voice and data services through satellites.

Hedlund, of the Consumer Electronics Association, notes that some of 
these companies have a lot of bandwidth but not a lot of customers. 
TerreStar Corp., for one, launched its satellite in July and is just 
building a subscriber base. And ICO Global Communications, which is 
running tests on a satellite launched last year, has not announced when 
it will begin commercial service.

But TerreStar General Counsel Doug Brandon believes the company has a 
strong argument for keeping its airwaves: Satellites can provide a 
critical lifeline in emergencies when other communications links go down 
and in rural areas where other carriers don't offer service.

If anything, added ICO Vice President Christopher Doherty, satellite 
phone companies are ideal partners for cell phone companies that want to 
expand coverage. TerreStar, for one, has a deal for AT&T Inc. to resell 
the satellite service.

More potential sources of frequencies are federal agencies that handle 
everything from emergency communications to surveillance operations. The 
Defense Department, for instance, needs the airwaves for such critical 
equipment as radars, precision-guided weapons and drone planes.

The Pentagon has vacated some frequencies and is developing technology 
that can make more efficient use of airwaves. It also says it is 
committed to finding compromises that work for the government and 
commercial sector, so long as those don't jeopardize military capabilities.

Karl Nebbia, head of the NTIA's Office of Spectrum Management, points 
out that federal agencies may be open to moving to different bands 
because the government is "a huge user of commercial broadband 
services." But one challenge will be to ensure federal users get the 
resources to relocate - including new equipment, potentially paid for 
with spectrum auction proceeds.

For now, one thing everyone agrees is that there are no easy pickings in 
the airwaves.

"There is no open space anywhere," says Kathleen Ham, vice president of 
regulatory affairs for T-Mobile.

-- 
================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204 
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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