FCC Frees Up Spectrum for Low-Cost Wireless Hubs

By Ryan Knutson 

U.S. regulators approved a plan Friday to unlock a large swath of airwaves that could be used to set up cheap, new wireless networks.

The move by the Federal Communications Commission frees up airwaves in the 3.5 gigahertz band, which are higher frequency than some Wi-Fi bands and don't travel very far. Currently, the frequency is used for Navy radar systems along the coasts, at a smattering of Army bases, and by rural Internet providers. Otherwise it is entirely unused.

Rather than a traditional model of auctioning the block to individual owners, the FCC plans to let users share the airwaves free or pay for priority access via an auction system.

The sharing regime--thought to be the first of its kind in the world--is made easier because of the physics of the 3.5 gigahertz airwaves. Traditionally, wireless carriers have used lower frequency airwaves that travel long distances and penetrate barriers such as walls and trees. Higher frequency airwaves don't travel as far or penetrate walls as well, making it easier for multiple networks to share the same frequency even if they're a located only a few blocks apart.

Backers of the approach include Google Inc., which has complained that the prevailing auction system makes the airwaves scarce and drives up the price of service. Earlier this year, the FCC drew about $45 billion in bids for spectrum in an auction where AT&T Inc., Dish Network Corp. and Verizon Communications Inc. won the bulk of the licenses.

Next year, the FCC could raise even more money in a complex auction where TV broadcasters will sell their airwaves to the agency, which will resell it to wireless carriers. The high price tag makes it is difficult for new entrants to gain access to airwaves needed to build or expand new wireless networks.

Demand for wireless airwaves has skyrocketed over the past decade as more Americans use smartphones to surf the web and stream videos. Access to the newly freed up spectrum will be coordinated by databases known as Spectrum Access Systems. Those systems will function as a traffic cop that tells antennas which channel of the 3.5 gigahertz band they are allowed to send signals over.

Google and a company called Federated Wireless have indicated interest in developing such databases. The search firm has been one of the most active companies supporting the plan. Wireless carriers have been more cautious and pushed for longer license terms and large license areas, which they say will give companies more incentive to invest. The plan adopted Friday reached a middle ground, FCC officials said.

The 3.5 gigahertz airwaves will be useful for networks that cover dense urban areas. In a speech last month, Milo Medin, a Google executive who pioneered the company's Google Fiber project, said one potential use would be to set up hot spots in areas where the company has fiber.

The government first identified the airwaves for sharing in several years ago, but only if hundreds of miles along the U.S. coastlines were excluded from use to avoid interference with the Navy radars. Research led by Google demonstrated those exclusion areas may not be necessary, and the plan adopted Friday includes a road map for eliminating the exclusion zones altogether.

It will still be some time before the airwaves can be used to power cellphones, however. The FCC still must begin a process to select the companies that will manage Spectrum Access Systems. After that, network antennas and cellphones must be built that are capable of hearing those frequencies.

Write to Ryan Knutson at [e-mail]

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