Feds Say There's Not Enough Spectrum For Future Smartphone Demands

Mobile phone sounds

One of the biggest constraints to delivering more content to mobile phones is capacity, which is driven in large part by how much spectrum the government allocates to carriers. “A key input is spectrum….there is not enough of it,” Blair Levin, the FCC’s top broadband official told industry executives and lobbyists.

Reuters reports that because of the shortfalls, U.S. regulators are seeking ways to make more efficient use of the airwaves already in use, so that commercial carriers can be prepared as consumers rely on smartphones even more for communicating and entertainment. One way is to free up some of the airwaves used by U.S. government agencies such as the Department of Defense. Levin: “The demand curves from uses like smartphones suggest it’s going to increase dramatically, for spectrum.”

One of the biggest bidders in the last spectrum auction was Verizon Wireless (NYSE: VZ), which intends on using the new airwaves to roll out its 4G network. Another company with a wealth of spectrum is Clearwire (NSDQ: CLWR), which is in the middle of rolling out a 4G network based on WiMax. Rather than participating in auctions, Clearwire cobbled together a deep portfolio by buying up unused spectrum and partnering with educational and religious organizations, which have been allocated some bandwidth.

Two companies that will likely be looking to increase their holdings is AT&T (NYSE: T), which has seen the results of heavy smartphone use first-hand through its exclusive with the iPhone, and T-Mobile USA, which is still working on rolling out its 3G network.

CTIA President Steve Largent told reporters that the wireless industry will lobby to get lawmakers to include language in legislation to set a timetable for spectrum auctions for businesses. “We can’t wait eight to 11 years for additional spectrum,” he said.

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