The Federal Communications Commission (FCC) has announced that
it will be seeking to add more bandwidth available for mobile
broadband thereby increasing the spectrum space that is currently
being offered to carriers by 2015.
Cisco VNI predicts that Global Mobile Data Traffic will continue
to explode with a CAGR of 92% through years 2010-2015.
With the rapid adoption of Smartphones, Tablets, and other data
hungry mobile devices operators will be scrambling to add
additional spectrum to their portfolios whether it be from FCC
auctions of newly allocated spectrum, M&A, or from re-farming
legacy operations.
Source: Cisco VNI Mobile, 2011
The FCC is currently looking at what spectrum it can make
available to satisfy the ever increasing demand for mobile
data.
The Middle Class Tax Relief and Job Creation Act of 2012
(H.R. 3630) provisioned the FCC with authority to:
- Hold voluntary incentive auctions - broadcasters spectrum 600
MHz Band
- Allocate necessary spectrum for a nationwide interoperable
broadband network for First Responders - 700 MHz Upper D Block
- > Provide $7bn for Public Safety Broadband Network
- > Provide up to $1.75bn for relocation costs for
Broadcasters
- Establish auction timelines
- > 1915-1920 MHz and 1995-2000 MHz - PCS H Block
- > 2155-2180 MHz - AWS 3 Block
- > 1755-1780 MHz - Government
- > 1675-1710 MHz paired with 15 MHz to be determined by the
FCC.
The FCC is also poised this quarter to either allow or block
Dish from using their 40 MHz of MSS spectrum for terrestrial mobile
broadband. In order for Dish to meet its accelerated self
imposed coverage requirements upon approval, Dish will have to
partner with an existing operator to host its spectrum on an
existing network.
While the FCC is taking necessary steps to make spectrum
available via auctions for public operators, this process is not
expected to yield quick results. Carriers will have to engage
in the lengthy process of bringing this spectrum to market.
The standardization process through 3GPP, testing and
implementation of new Band Classes, integration of new devices and
infrastructure all take significant time in order for a carrier to
deploy new spectrum allocations. With the ever increasing
demand for mobile data by subscribers, rapid adoption of
smartphones and tablets, the explosive growth of M2M, and as
developers create data intensive applications such as Siri,
Facetime, mobile video, et.el., carriers will continue to look for
new spectrum via M&A, re-farming legacy networks, small cells,
Wi-Fi offloading, or other alternative methodologies.