Executive Summary
The 700 MHz band includes the spectrum occupied by UHF TV channels
52 through 69 (698 MHz - 806 MHz). As a result of the 1996
amendments to the Communications Act, this band was re-allocated
for use by other communications services, including Public Safety
and Public Commercial use. Although development of Public Safety
use in the 700 MHz band began in 1997, few systems have actually
been deployed due to concerns with interference from the incumbent
broadcasters.
In accordance with the Balanced Budget Act of 1997, public use of
the 700 MHz band was mandated via the FCC Auction process. At the
onset of this process, the FCC announced that commercial licensees
in this band would be permitted to provide fixed, mobile and
broadcast services. Suggested uses of the 700 MHz commercial
spectrum included mobile and new digital broadcast operations,
fixed and mobile wireless broadband services (including FDD and
TDD based systems) as well as fixed and mobile wireless uses for
private internal radio needs. Commencing in September 2002,
followed by a second auction in May/June 2003, 735 licenses were
awarded in these auctions, raising over $144M.
Two companies, Aloha Partners and Qualcomm, have emerged as the
major license holders and are currently developing businesses
utilizing their 700 MHz spectrum. Aloha Partners intends to
provide fixed and mobile wireless broadband internet access
services but the company is still undecided about what technology
to deploy. Qualcomm plans to establish and market a mobile video
service under the MediaFLOŽ brand name to cellular and PCS
operators. MediaFLOŽ will support real time video streaming as
well as ' Clip Casting ' to mobile handsets.
Both Aloha Partners and Qualcomm have sufficient spectrum to
support nationwide footprints.
In Canada, a similar regulatory process has been underway for
almost a year, beginning with Public Safety systems that will be
closely harmonized with those in the U.S. Over the next year or
so, Industry Canada is expected to follow a similar process as the
U.S. in developing commercial operations in the 700 MHz.
What makes 700 MHz spectrum exceptionally attractive for wireless
broadband operators is the cost dynamics of system deployments:
the lower the frequency of operation, the farther signals
propagate and penetrate through trees and buildings and bend
around obstacles. This has a dramatic impact on the cost of
deployments compared to systems operating at higher frequencies.
As a seat of the pants rule, a doubling of frequency at which a
wireless system operates, equates to a doubling of deployment
costs and at least a doubling of cell sites or halving of each
cell's coverage area.
Of course there are other factors toconsider such as available
spectrum bandwidth and subscriber density, but allelse being
equal, lower spectrums provide unique competitive advantage
compared to similar bandwidth spectrum at higher frequencies.
Digital video broadcast and mobile broadband services can be made
very cost effective despite relatively narrow spectrum bands.
The 700 MHz spectrum is increasingly being developed for use of
OFDM based technologies: Qualcomm has shifted from use of CDMA to
OFDM as the core technology in MediaFlo. Similarly, Airspan, Intel
and other companies are pursuing development of systems based on
OFDM/WIMAX. Migration of TV broadcasters away form the spectrum
and licensing of the vacated spectrum could become the decisive
factor in how quickly and extensively development unfolds. |
