& cplSiteName &

Playing by the Rules: The Success of Unlicensed Spectrum

Richard Thanki
3/7/2014
50%
50%

For over a century, wireless services using licensed spectrum have profoundly shaped our lives. It’s difficult to imagine a world without the influence of radio, television, satellite links, and mobile telephony.

However, during the last 15 years, communication using the unlicensed bands of spectrum has witnessed an explosion in usage and utility that rivals, and in many ways eclipses, the licensed experience.

  • Unlicensed spectrum has allowed unprecedented innovation in wireless applications and technology. Multiple standards, such as WiFi, Bluetooth, and ZigBee, have enabled a dizzying array of connected devices. In addition many of the most pivotal recent innovations in wireless technology, from multiple antenna techniques to advanced modulation, first found widespread deployment with unlicensed technologies.
  • Unlicensed networks carry most of the world’s Internet traffic. WiFi networks carry more Internet traffic from end-user devices, including PCs, tablets, and smartphones, than Ethernet cables and mobile networks combined. Even in the case of smartphones, more Internet data traffic is carried on WiFi than on 3G and 4G networks.
  • The majority of wireless devices shipped use unlicensed bands to communicate. More devices are shipped each year that use unlicensed technologies such as WiFi and Bluetooth than those that use the licensed bands.
  • The Internet of Things will consist almost exclusively of unlicensed wireless devices. By 2020, around 100 billion devices will be connected, with more than 95 percent using unlicensed technologies to communicate. The idea of SIM cards for every device is simply not coming to pass.

This flowering of innovation and industry has also generated immense economic value. Multiple economic studies have demonstrated the substantial economic value generated by unlicensed wireless technology. A recent analysis by Raul Katz, Adjunct Senior Research Scholar at the Columbia Institute for Tele-Information, suggests that in the US alone the value from unlicensed spectrum is $140 billion per annum . As wireless connectivity further permeates every aspect of everyday life, commerce, and industry these benefits will grow commensurately.

Perhaps the key to its success is that potential participants in the unlicensed spectrum bands simply have to follow a set of rules with no need to either obtain permission from a spectrum "owner" or acquire such a title themselves. These two approaches, access by rules and access by title, are used by societies to manage access to a number of limited-capacity resources.

For example, we use rule-based access to enable access to our road networks and justice systems and title-based access to manage access to most land. Professor Brett Frischmann, affiliate scholar at the Center for Internet and Society at Stanford Law School, provides a succinct explanation of why rule-based systems (those following a "commons management principle") can generate greater benefits in some instances than title-based access:

    The general value of commons as a resource management principle is that it maintains openness, does not discriminate among users or uses of the resource, and eliminates the need to obtain approval or a license to use the resource. As a general matter, managing infrastructure resources in an openly accessible manner eliminates the need to rely on either market actors or the government to “pick winners” downstream. In theory, at least, this facilitates innovation in the creation of and experimentation with new uses. More generally, it facilitates the generation of positive externalities through the downstream production of public goods and non-market goods that might be stifled under a regime where access is allocated on the basis of individuals’ willingness to pay.

The unlicensed bands display these characteristics in spades. Freedom to access the spectrum has prompted the creation of a range of standards that act like public goods: empowering any manufacturer -- from the very smallest to the very largest -- to create compatible devices that can be sold directly to a global market of end-users.

The pace of change in unlicensed spectrum isn’t slowing down. In coming years we will see new bands of unlicensed spectrum coming into widespread use, opening further avenues for innovation and industry.

— Richard Thanki is a former Ofcom economist and a current PhD candidate at the University of Southampton.

(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
AJ Allred
50%
50%
AJ Allred,
User Rank: Light Beer
3/16/2014 | 3:18:29 AM
Re: Thanki's "Playing by the Rules"
Ironically, communist and primitive systems can sometimes get things done more efficiently than our 'democratic' dual-squeeze of land title and permit hurdles.

No wonder China and Africa are advancing with relative speed in wireless - - they don't have to step over so many zoning people who are protecting the "view scape".

As a former planner myself, I can attest that planning uses tools of the past to prevent the present from ever reaching the future.

If we want our phones to work, then we should stop hating the cell tower.
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
3/10/2014 | 9:19:09 PM
Re: Thanki's "Playing by the Rules"
Here's something I learned recently: Today's system of licensing developed during a humanitarian crisis. Legislators were reacting to the perception that unlicensed amateurs were swamping the signals from the US Navy and other authorized providers who were attempting to send assistance to the victims of that disaster.

The disaster was the sinking of the Titanic. Yes, the current regime is THAT OLD.

And even then the licensing system was unnecessary. The problem wasn't unlicensed amateurs -- the problem with the Titanic was that the ship radio operator was a fool.
Richard Thanki
50%
50%
Richard Thanki,
User Rank: Light Beer
3/10/2014 | 8:02:25 AM
Re: Thanki's "Playing by the Rules"
It's interesting that in land, as in many other resources/infrastructures rule-based operation (zoning laws) co-exists with a system of titles and licences (land ownership)!
Richard Thanki
50%
50%
Richard Thanki,
User Rank: Light Beer
3/10/2014 | 7:59:04 AM
Re: Thanki's "Playing by the Rules"
Licensing will be necessary for the foreseeable future, especially for services where the costs of infrastructure deployment are relatively very high and link budgets need certainty. Certainly the case for mobile and satellite.

 

However, for the vast majority of new connectivity applications the market will choose unlicensed technologies - the performance to cost/hassle ratio is too high to ignore. Even mobile operators are likely to plump for unlicensed for small cell backhaul.

 

This situation will become even more pronounced as increasingly sophisticated radios, antennas and processing are able to eke ever more performance out of unlicensed bands.
Mitch Wagner
100%
0%
Mitch Wagner,
User Rank: Lightning
3/7/2014 | 5:30:01 PM
Re: Thanki's "Playing by the Rules"
Is there a case to be made against unlicensed spectrum? Is there a case to be made for the continuation of licensing spectrum, given technology advances that make that framework unnecessary.
AJ Allred
50%
50%
AJ Allred,
User Rank: Light Beer
3/7/2014 | 1:22:52 PM
Thanki's "Playing by the Rules"
Richard Thanki's piece "Playing By the Rules" is good stuff.  In the USA, wireless carriers have to clear hurdles in both the "rules" and "title" realms:  zoning permit constraints can be major hurdles by themselves (rules realm), and may encourge excessive land purchase or leasing revenue expectations by constraining market options (title realm).

Consumers might do themselves a favor by pushing their municipalities to ease-up a bit on zoning constraints that are often out-of-date and/or based too much on fuzzy aesthetics.  Licensed spectrum ought not to a too-easy target for out-of-touch land planners. 

 
More Blogs from Column
Here's how to build and scale a secure digital video business with confidence.
An insider's perspective on how 4G and 5G standards get created.
Even in the cloud, location matters thanks to regulation, as Ashwin Krishnan of Hytrust explains.
Who benefits from the new Ethernet protocol and why? Ixia Chief Marketing Officer Jeff Harris has some suggestions.
Status and next steps on spectrum policy for Gigabit LTE and 5G in the US and beyond.
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
Three Gets Smart(y), BT Invokes Twitter – The Recap

8|21|17   |     |   (0) comments


From Telecoms.com, a recap of the week's telecoms talking points. It's been a week of gimmicks as Three tests out a pay-as-you-go sub-brand called Smarty; Comcast
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
T-Mobile Turns On First 600MHz 4G Sites
Dan Jones, Mobile Editor, 8/16/2017
WiCipedia: Dolly Babes, Manifesto Backlash & 'Brotastic' Failures
Eryn Leavens, Special Features & Copy Editor, 8/18/2017
Verizon Takes On AT&T's FirstNet on 4G
Dan Jones, Mobile Editor, 8/16/2017
Ericsson Plans 25,000 Job Cuts – Report
Ray Le Maistre, International Group Editor, 8/17/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
Talk About a Custom-Made Workstation! Click Here
Proper ergonomics indeed.
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.