& 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
Like Apple, Facebook, and Google, Sony is examining the possibilities of 5G too.
The iPhone maker is looking for a wireless engineer who can develop hardware using emerging technologies.
Welcome one and all to our new 5G site!
Koontech intros the fire- and bomb-proof phone.
AT&T is reported to be using Huawei's equipment in Mexico.
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    Ditching the Slash & the Orchestration Wars

    5|3|16   |     |   (2) comments


    SDN and NFV have been inextricably bound with each other for so long that on a conceptual level, smooshing them together into one catch-all phrase – SDNFV – is now justifiable, according to Dan Pitt, executive director of the Open Networking Foundation (ONF). Light Reading spoke to Pitt at the NFV World Congress, where he explained that the next ...
    LRTV Custom TV
    ZTE TV Connect Highlights

    5|3|16   |     |   (0) comments


    ZTE gives us a tour of its booth and new products at TV Connect in London.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (1) comment


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    FCC Poised to Re-Regulate Wholesale Access
    Carol Wilson, Editor-at-large, 4/28/2016
    Rovi Reels in TiVo for $1.1B
    Mari Silbey, Senior Editor, Cable/Video, 4/29/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.