JULY 31, 2006

By Mark Gimein
BusinessWeek Magazine

WiFi Eyes the Empty Airwaves

http://www.businessweek.com/magazine/content/06_31/b3995073.htm?chan=tc&chan=technology_technology+index+page_more+of+today



The white space—unused spectrum between TV channels—could be key to new 
wireless services, but big telcos say it's a threat

Ever since the government licensed the first radio stations, we've been 
accustomed to thinking of the airwaves as a scarce resource. Once handed 
out to the politically well-connected, in more recent years it has been 
auctioned off to services such as wireless phones for many billions of dollars.

Look at a chart of how the airwaves are divided, and you'll see sections 
devoted to radio, TV, cell phones, police radios, and other devices, each 
of which has its own band of frequencies. Policymakers have talked about 
allocating those frequencies more efficiently. Reducing the space given 
over to TV by moving to digital broadcasts has been one key aim.

Now Michael Calabrese, a vice-president at the New America Foundation, a 
liberal Washington think tank, has advanced a new plan to use some of the 
wireless spectrum. It qualifies as one of the most promising and innovative 
ideas in communications. The idea: to open up "white space"—unused 
frequencies between TV channels—for unlicensed use to anybody who wants to 
put up a transmitter.

OPEN SPECTRUM. "Unlicensed" spectrum is something we already know about. 
It's the principle behind WiFi, the networking technology employed to 
provide the wireless Internet connections you're probably using with your 
laptop: hotspots at Starbucks, in-home wireless networks, and in the 
citywide wireless clouds now in the planning stages in Philadelphia and San 
Francisco.

Anybody who wants to put up a WiFi network can—it uses spectrum that 
regulators two decades ago decided to leave open instead of parceling it 
out as they did with the channels used for radio or TV (before WiFi came 
into its own, most of the uses to which that spectrum was put remained very 
specialized).

The problem with WiFi is that the signal doesn't travel very far or 
penetrate walls well. That's something opponents of big citywide WiFi 
networks have been eager to mention. They have a point, and it's part of 
the reason WiFi isn't yet an adequate alternative to wired broadband 
services like cable or DSL.

"BEACHFRONT." One way of getting around the problem might be to make the 
signal stronger with more powerful transmitters. But that's not an option 
because WiFi has to operate on very low power to avoid interfering with 
other WiFi networks or devices such as cordless phones. Another option is 
to use a different frequency. Lower frequency signals travel further and go 
through obstacles more easily.

But there isn't very much desirable low frequency spectrum—Calabrese calls 
it "beachfront" spectrum—up for grabs. And that's where "white space" comes 
in. TV stations use powerful transmitters to send their signals out for 
many miles. But the stations can't operate at frequencies too close to each 
other or the signals would bleed together. That's why not every channel 
number can be used (in New York City, for instance, stations operate on 
channels 2, 4, 5, 7, and 9, and some of the channels in between are left 
empty).

The insight of the proposal advanced by Calabrese and his colleagues is 
that lower power services can be slotted into those unused spaces and still 
leave enough of a buffer zone to avoid interfering with TV signals. 
Calabrese calls unlicensed spectrum between today's TV channels "rocket 
fuel for broadband networking."

CHEAP SPACE. When he first proposed it in 2001, Calabrese says it seemed 
like a quixotic plan. That's no longer so. The Federal Communications 
Commission is interested enough in the proposal that it has gone to the 
stage of soliciting public comments. And technology companies are very much 
behind it.

Intel's technical studies show unlicensed networks in the white space 
between TV channels could allow better signals than current WiFi and still, 
because they would require fewer transmitters, cut the cost of building 
extensive wireless networks like those planned by many municipalities to a 
quarter of what they would cost now. Calabrese's plan demands very little 
in the way of new technology. Effectively, it operates just like today's 
WiFi, but in a different part of the airwaves.

Broadcasters have opposed the new plan, waging what Calabrese calls a 
"scorched earth" campaign against it. They claim their main concern is 
interference with TV signals. But regulators have been trying to pry some 
of their spectrum away from broadcasters for years, and there might be a 
lot more at work than just concerns about interference. In earlier decades, 
having a broadcast license meant having a right to deliver one kind of 
service—radio or TV, for instance.

THREAT TO INVESTMENT. But now lots of new data services can use just about 
any frequency. Letting new services into the space between TV channels 
reduces broadcasters' hopes that eventually they would just get to keep 
their big swaths of spectrum and might be allowed use them to offer new 
services without having to spend billions to buy spectrum at auction (as 
the phone companies had to do to offer cell phone services).

The big telcos aren't thrilled about the idea either. More powerful 
services in unlicensed spectrum would pose a threat to the big investments 
they have made in 3G data services for which they charge $60 to $80 a 
month. And it could present a more powerful competitive threat to cable and 
DSL lines than the current crop of municipal wireless plans.

So far, the telcos have been sitting out most of the debate, but there are 
hints that they'll act if opening the TV band white space gets closer to 
reality. One handout that Verizon (VZ ) distributed on Capitol 
Hill—provided to BusinessWeek by Calabrese—argues that there's already 
plenty of spectrum available for unlicensed uses. The problem is that most 
of that spectrum is at very high frequencies and has only limited usefulness.

MORE TO AUCTION? Another objection to allowing unlicensed uses of the white 
space: Selling spectrum licenses has in fact been a very good public policy 
idea. It has raised billions of dollars for the government and let the 
market have a voice in deciding what services will be offered.

A recent paper by a researcher at the Progress and Freedom Foundation, a 
libertarian-leaning think tank that has often sided with the big telcos, 
argues that if the white space is to be opened up, it can simply be 
auctioned off. That would certainly be better than nothing. But the 
incredibly rapid growth of WiFi over the past years proves auctioning 
spectrum off to the highest bidder isn't the only way to make the most of 
the airwaves.


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



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