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Feds to carriers: Let's share the airwaves

Updated.  Federal spectrum managers on Tuesday recommended that a huge chunk of spectrum used by the 20 government agencies be made available to commercial mobile operations - a move that is sure to please carriers claiming to be strapped for airwaves.

GigaOM Kevin Fitchard

Context & Ripple Effects

With no clearing-and-auction pipeline big enough to satisfy carriers who say they are strapped for airwaves, federal spectrum managers on March 27, 2012 recommended instead that a huge chunk of spectrum used by 20 government agencies be opened to commercial mobile operations — sharing rather than relocation as the release valve.

The recommendation traveled unusually far for a spectrum-policy story: GigaOM's report was picked up same-day by PC Magazine, CNET, Computerworld, Gizmodo, Engadget, The Verge and dailywireless.org, and notably by AT&T's public policy blog — the clearest signal among the pickups that the affected carriers regard this as their fight.

First-order effects

  • Commercial carriers gain a credible near-term path to additional network capacity at a moment when their own public position is that licensed spectrum is running short.
  • The 20 federal agencies using those airwaves now face the operational burden of the deal's other half: engineering coexistence with commercial traffic or vacating bands they currently hold.

Second-order effects

  • Equipment and device makers get a new target band to standardize against, and whichever sharing architecture regulators settle on becomes a product requirement across the radio supply chain.
  • Incumbent holders of exclusively licensed spectrum face pressure on its scarcity value: if federal bands can be shared into commercial use, 'more exclusive licenses' stops being the only answer to carrier capacity complaints.

Third-order effects

  • If the pattern holds, US spectrum policy shifts structurally from clear-and-relicense toward managed federal-commercial sharing — a model whose success depends on untested coordination mechanisms between agencies that have held these airwaves for decades.
  • A durable federal commitment here would also reset the lobbying calculus for carriers and agencies alike, turning every future federal allocation review into a contested commercial opportunity.

The trend: US spectrum policy is pivoting from exclusive government holdings and one-time auctions toward shared federal-commercial airwaves as mobile demand outpaces cleared supply.