Obama

President Obama signed a memorandum this morning that will free up 500Mhz of government and privately-owned spectrum over the next decade to double the amount of wireless broadband capacity in the United States.

The Obama Administration claims the newly available spectrum will throw a rescue line to overburdened wireless networks that are facing a spectrum crunch.  The White House estimates wireless data usage will explode — growing between 20 and 45 times in the next five years.

President Obama:

Few technological developments hold as much potential to enhance America’s economic competitiveness, create jobs, and improve the quality of our lives as wireless high-speed access to the Internet.  Innovative new mobile technologies hold the promise for a virtuous cycle — millions of consumers gain faster access to more services at less cost, spurring innovation, and then a new round of consumers benefit from new services.  The wireless revolution has already begun with millions of Americans taking advantage of wireless access to the Internet.

Expanded wireless broadband access will trigger the creation of innovative new businesses, provide cost-effective connections in rural areas, increase productivity, improve public safety, and allow for the development of mobile telemedicine, telework, distance learning, and other new applications that will transform Americans’ lives.

In practical terms, the reallocation of spectrum could spark a battle between the current spectrum holders — often government agencies and private UHF television stations — and the government.  Parts of the plan will require Congressional approval, a sure-fire guarantee that wireless providers will have to write some more checks to their astroturf and sock puppet friends to help sell the benefits of the plan to a wary Congress.

Since most of the spectrum would likely be sold at auction, the proceeds could deliver the administration a tidy sum to either reduce the federal budget deficit and/or fund broadband initiatives.

But what might seem at first like a win-win might not turn out that way in the end.

We have the following concerns:

Past spectrum auctions have largely benefited incumbent wireless carriers, especially companies like AT&T and Verizon who have the deep pockets that guarantee successful bids at auctions.  Both wireless carriers are not actually using all of the spectrum they already acquired in earlier auctions and have essentially warehoused those frequencies, particularly in rural areas, to keep them out of the hands of other companies that could deliver service.  FCC requirements that auction winners actually utilize their acquired spectrum have been so lax as to be laughable.  Carriers can easily satisfy FCC requirements building only in urban areas and leaving large swaths of the countryside unserved. The FCC must set rules that auction winners use their allotments in both rural and urban areas, or face fines or forfeiture.

Setting aside some frequency blocks for smaller providers and would-be competitors is critical.  In today’s mobile wireless marketplace two companies are superpowers and then there is everyone else.  Both AT&T and Verizon have the resources to outbid virtually anyone.  Allowing blocks of frequencies to be reserved exclusively for new competitors would bolster competition and give consumers more choices.  Those frequencies must be sold in a block that is identical nationwide — not leftover spectrum running through several frequency bands.

Providing additional spectrum for wireless broadband isn’t a problem, but with complaints about wireless service providers growing, along with consumers’ bills, now is the time to reform wireless for the benefit of consumers.  Let’s make it a “win” for everyone.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Bloomberg Obama Proposes to Double Airwaves for Mobile Web Access 6-28-10.flv[/flv]

Bloomberg News explains the controversy behind the transfer of spectrum from the government and broadcasters to the mobile broadband industry.  (2 minutes)