The FCC’s 700 MHz band plan – why it matters

The FCC’s recently issued an order on the use of 700 MHz spectrum.  The airwaves have been occupied by television broadcasters, and will be made available for other wireless services, including public safety and commercial services (download the FCC press release).  The spectrum will be vacated by TV broadcasters on February 17, 2009 and auctioned no later than January 28, 2008.  Based on the press release, the FCC order creates:

  1. “Open Platform” wireless spectrum.  Whoever wins the auction for this huge chunk of spectrum (22 MHz) must agree to “provide a platform that is more open to devices and applications.”  The goal is to “allow consumers to use the handset of their choice and download and use the applications of their choice.”
  2. Nationwide public safetey wireless spectrum.  The winner of the bid for 10–20 MHz of “Nationwide Commercial” wireless spectrum, will join in a Public Saftey/Private Partnership and will also win the right to “build out a nationwide, interoperable broadband network for the use of public safety.”  The winner also gets to use some of the Public Safety network (see the transparent overlap in the figure) as long as their use of the Public Safety network is pre-emptible when there is an emergency.

What is the impact?

  1. Google must build a network if it wants to play.  Despite a severe attack of arrogance, Google did us all a favor by influencing the FCC to set aside spectrum for an open platform wireless network.  But the bad news for Google is the fact that it will not be able to buy the spectrum and make money by wholesaling access to the airwaves to others.  Google must bid on the spectrum like everyone else, and then it must build a network and operate it.  Maybe for the first time ever, Google will be faced with getting its hands dirty.  Build a real network, operate it, and deal with all those nasty users complaining that it doesn’t work the way they want it too.  Accountability.  Jeesh, what a bad dream.  Of course, Google can hire someone to build and to run it, but ultimately it will be theirs.
  2. The big plum is in the Public Safety spectrum.  The winner of the auction for the National Commercial spectrum, not only gets to build out the Public Safety network and use some of the spectrum when possible, it gets to compete with the Open Platform winner in the 700 MHz band.  What’s so great about 700 MHz?  One of the biggest problems for mobile networks today is coverage, indoor and out.  Because 700 MHz is lower frequency than most of today’s cellular networks, it will have fantastic propagation characteristics.  It will go further in the open air than today’s cellular, and it will penetrate build walls better.  Expect the bidding to be fierce for this chunk of spectrum.

Full disclosure: Employed by AIRV, no position in GOOG at time of writing.

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