& cplSiteName &

Is There Really a Spectrum Shortage?

Dan Jones
12/14/2012
50%
50%

11:20 AM -- It's been a busy week in the continuing race to grab precious wireless spectrum in the U.S.

Sprint Corp. (NYSE: S) revealed a $2 billion bid for control of Clearwire LLC (Nasdaq: CLWR)'s nationwide 2.6GHz spectrum. Dish Network LLC (Nasdaq: DISH) got clearance to use AWS-4 spectrum for an LTE network. The Federal Communications Commission (FCC) , meanwhile, says it will open up 100MHz of 3.5GHz radar spectrum for small cells and sharing.

The Clearwire deal in particular, which has CNN Money declaring Sprint a would-be spectrum king, gets me wondering if it's really necessary to talk about a spectrum crunch for the big three carriers in the U.S. at the moment.

Consider these points:

If Sprint wins Clearwire it will get access to average holdings of 160MHz in the 2.5GHz-2.6GHz band in the top 100 U.S. markets. (See Clearwire: What 4G Spectrum Shortage? and Sprint Wants to Buy Clearwire Outright for $2.1B.)

As Karl Bode over at DSL Reports pointed out in November, AT&T Inc. (NYSE: T) didn't really need to acquire T-Mobile US Inc. , which it said it did to complete its Long Term Evolution (LTE) rollout to 300 million people, after all. (See AT&T Puts Up $14B to Boost Broadband and Big AT&T & T-Mobile 4G Buildout Ahead?)

In fact, AT&T has been busy buying up spectrum and getting the FCC to agree to open up the WCS band for its use later this decade. (See Sprint Could Make Millions Selling WCS to AT&T.)

Verizon Wireless , meanwhile, said in March that without its AWS spectrum swap with cable companies this year, it feared a spectrum shortfall on its 700MHz C-Block network in some markets by 2013. In order to get the AWS spectrum, though, it has agreed to sell off some 700MHz spectrum in the A- and B-Block. (See Verizon Fears 4G Spectrum Shortfall and Verizon CFO: Spectrum Sale to 'Play Out' in Q1.)

So it seems to me what we're really seeing is jockeying by AT&T, Verizon and Sprint to get good amounts of spectrum that best suit their commercial and strategic interests.

Now, I know that access to spectrum is a very real concern for smaller players in the market. In fact, I think we could see even more smaller carriers rolled up by the big guys to add subscribers and spectrum in 2013 and beyond.

Of course, as with oil and any other finite resource, a spectrum crunch is inevitable eventually, particularly as tablets and other data-hungry devices eat up more of the shared bandwidth on a network.

Small cells, spectrum sharing, smart antennas and software-defined radio (SDR) should all -- hopefully -- help us manage and stretch out wireless capacity in the future.

For now, however, it doesn't seem to me that the big three carriers in the U.S. are in danger of falling off a bandwidth cliff just yet.

What do you think?

— Dan Jones, Site Editor, Light Reading Mobile

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:09 AM
re: Is There Really a Spectrum Shortage?


That cost of entrance barrier is the sort of thing Dish faces, whether it will admit to it or not.  Wonder how long before this spectrum king in the making tries to annex Dish's holdings. JB

More Blogs from Jonestown
Pokémon Go has taken the US by storm in a week, but it will look quaint in a few years' time as virtual reality games and apps arrive on 5G.
It wasn't much of a contest really!
Researchers at the University of Madison-Wisconson are taking the concept of 5G wearables to the next level.
More than a third of poll respondents think that IoT will kickstart 5G.
Like Apple, Facebook, and Google, Sony is examining the possibilities of 5G too.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, July 27, 1:00PM EDT
The Changing Face of the Data Center World
Rodney M. Elder, Senior Solutions Architect, Equinix
UPCOMING COURSE SCHEDULE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
in association with:
From The Founder
The more things change, the more they stay the same for Juniper's next-gen comms solutions, and that's a good thing.
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 Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (0) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
LRTV Interviews
AT&T Launches Network Functions on Demand

7|17|16   |   05:26   |   (0) comments


Roman Pacewicz, Senior Vice President, Offer Management & Service Integration, AT&T Business Solutions, discusses the operator's launch of its Network Functions on Demand service.
LRTV Interviews
Enterprise Pitch for Ciscosson

7|14|16   |   04:43   |   (0) comments


After seven months of near silence, Cisco and Ericsson executives publicly discussed details on their extensive partnership. Among the tidbits shared by Martin Zander, VP, group strategy programs, Ericsson, and Doug Webster, VP service provider marketing, Cisco: The partnership was initially launched to serve the service provider market, but is already gaining ...
Wagner’s Ring
Cisco Faces Up to Hypercloud Threat

7|13|16   |   02:42   |   (0) comments


Facebook, Amazon and Google mostly don't buy branded technology for their networks – they build their own. That's a threat to Cisco – and its competitors too – which face potentially dwindling demand for their product. Is Cisco up to the challenge? Light Reading went to the annual Cisco Live conference to find out.
LRTV Huawei Video Resource Center
Building a Better Connected Russia

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Alla Shabelnikova of Ovum shares the findings of a white paper outlining the challenges and opportunities of broadband rollout in Russia.
LRTV Huawei Video Resource Center
The Global Video Business

7|13|16   |     |   (0) comments


At UBBS World Tour 2016, Roger Feng of Huawei shares insights on the future of video business.
LRTV Huawei Video Resource Center
UBBS World Tour Moscow Highlights

7|13|16   |     |   (0) comments


At UBBS World Tour 2016 at Moscow, Huawei showcases its outstanding progress in video technology.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
September 27, 2016, Philadelphia, PA
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
SoftBank Muscles In on ARM in $32B Deal
Iain Morris, News Editor, 7/18/2016
Ericsson 'Doubles' Savings Goal as Sales Slump
Iain Morris, News Editor, 7/19/2016
Kevin Lo's Move to Facebook: Sign of Things to Come?
Patrick Donegan, Chief Analyst, Heavy Reading, 7/20/2016
Verizon's Next With VNFs
Carol Wilson, Editor-at-large, 7/21/2016
Facebook Gets Its Drone On
Ray Le Maistre, Editor-in-chief, 7/22/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.