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March 26, 2007

With the Converstion To Digital TV, A New Opportunity [6:33 am]

Or not: Hot Spectrum Draws Cash, and Ideals

“This offers the potential for a real game changer in broadband spectrum,” said John M. R. Kneuer, assistant secretary for communications and information at the National Telecommunications and Information Administration, an arm of the Commerce Department. “It can both generate new innovation and lower prices.”

The airwaves in question are in the 700-megahertz band, a segment used until now for UHF television but freed up by the move to digital broadcasting. Unless Congress reverses itself, those frequencies are scheduled to be reclaimed by the government and reallocated for public safety and commercial broadband networks on Feb. 19, 2009.

Mr. Kneuer points out that because the new band is at a lower frequency than today’s cellular and digital wireless services, it has a far greater range as well as the ability to penetrate the walls of homes and office buildings more effectively.

That could enable a new entrant to build out a broadband service dedicated to mobile devices — a sector considered to have greater growth potential than conventional voice services. This could be done quickly and relatively inexpensively with just a few transmission towers and then filled in with additional capacity as new customers join the network.

“This is the realization of a truly national wireless Internet,” said Reed E. Hundt, a former F.C.C. chairman.

[...] “This spectrum could catalyze tremendous innovation,” said Kevin Werbach, assistant professor of legal studies at the Wharton School, University of Pennsylvania. “However, if the auction process is focused on raising the most amount of money for the government, it might prove counterproductive for the larger economic interests of the country.”

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