Subject: [NEXTEL-1] 'Air' Allocation Hogties Wireless Growth

From: Marcel <[email-masked]>
Date: Sat, 22 Feb 2003 22:54:35 -0500

Investor's Business Daily
'Air' Allocation Hogties Wireless Growth
Wednesday February 19, 10:51 am ET
By Mike Angell

As tech companies push wireless, the technology is increasingly coming up against two
limitations: spectrum and Washington, D.C.

Wireless devices like the popular new Wi-Fi gear use radio waves - that is, spectrum -
to carry voice and data.

The federal government - mostly in
the form of two separate
bureaucracies, though a third is
involved and Congress has hinted it
might get involved - regulates the
increasingly limited supply of
spectrum.

Such tech titans as Cisco Systems
Inc. and Microsoft Corp. are among
companies lobbying for more
spectrum for their wireless
customers.

Potential sources of spectrum
include TV stations and the military.
But they hate the idea of giving up
spectrum.

The bottom line, say observers, is that the spectrum game will be a long, complex
struggle.

"It's not exactly a quick task to change spectrum policy," said Nancy Victory, an
assistant secretary at the Commerce Department. That department, along with the
Federal Communications Commission, are the key regulators for this issue. The
Defense Department is on the periphery.

Victory and others realize time is short.

"All these new wireless technologies are quickly being incorporated into new products,"
said Victory.

The airwaves might seem limitless. But because of physical and technical issues,
almost all users must crowd into 1% of radio spectrum. This, says Victory, is the
"beach-front property."

Some Licensed, Some Not

Most of that 1% is licensed spectrum, and the bulk of that is licensed to broadcasters
and the military. Providers of wireless phone and data services have a smaller share of
the licensed spectrum. A smaller portion, though, is unlicensed. Cordless phones, Wi-Fi
and another wireless technology called Bluetooth are among users that share the
unlicensed spectrum.

Not long ago, interference between unlicensed devices, such as a baby monitor picking
up a cordless phone conversation, was an issue. For now, technology has removed
most of those problems. But the growth of unlicensed users adds to the potential for
interference.

"There's a concern that (spectrum) is going to get congested," said Ed Thomas, an
FCC engineer.

That fear is why Microsoft, Cisco and many other companies filed comments with the
FCC last year seeking to boost the amount of unlicensed spectrum available. The FCC
would like to oblige them, but only to a certain extent.

It comes down to the issue of licensed users such as the military and broadcasters
having to share some spectrum. And licensed users, as would be expected, are wary.

Deputy Assistant Defense Secretary Steven Price says he wants to see the commercial
wireless market succeed. But more use of unmanned aircraft, better satellite
surveillance and other new tools means the military's spectrum needs are growing, too.

"We're going to need more spectrum, not less," Price said.

For broadcasters, opening up more airwaves will reduce the value of their spectrum,
says Robert Rini, a telecom attorney who represents broadcasters. He says many radio
stations went bust after the FCC licensed more radio stations in the 1980s.

"The more spectrum you open up, the less valuable it is for current holders," Rini said.

Two federal agencies must do most of the arbitration. Commerce doles out spectrum to
licensed federal users such as the Defense Department. The FCC handles licensed
and unlicensed commercial users, state and local governments.

This situation can be unwieldy. A January report by the General Accounting Office says
it's sometimes difficult for the two agencies to cooperate because they represent
different interests.

Perhaps New Regulator Needed

If the FCC and Commerce can't work together, the GAO recommends an independent
commission take over all spectrum allocation.

All sides are trying to work together. Recently, Commerce and Defense proposed
letting new types of unlicensed wireless network gear known as 802.11a share the
same spectrum used by military radar. It would be the first such sharing by licensed and
unlicensed users.

Gear makers, which include Cisco and Intel Corp., would have to make their 802.11a
products more sensitive to avoid radar interference.

The FCC now has to approve or deny the proposal.

Sharing is one way to relieve congestion, but it's not a cut-and-dried issue. While many
executives say the latest technology makes sharing spectrum doable, worries persist.
"There are lots of uncertainties about the ability to share spectrum," Rini said.

The FCC would like to give licensed spectrum holders more leeway on how they use
their spectrum. It's proposed letting spectrum licensees sublease space on their own
without FCC approval.

But the GAO report says such plans could create congestion without an oversight body
like the FCC.

Another way to lessen the congestion is to better use licensed spectrum. The military
still uses a lot of older analog radios, which use more spectrum than digital radios.

Military radio is going digital, but Price says it can't go totally digital. It needs to
be able
to communicate with allies who use analog.

TV broadcasters, too, are slowly going digital. That will free up more of their spectrum,
but the process will take a long time.

In short, spectrum policy reform won't happen overnight.

Said attorney Rini, "It's going to keep me busy for a while."

http://biz.yahoo.com/ibd/030219/tech_1.html
--
    "NEXTEL-1 IT'S NOT JUST NEXTEL"
  Note The New address
Subscribe to Nextel-1: http://www.groups.yahoo.com/subscribe/NEXTEL-1

  "NEXTEL2 FOR iDEN SOFTWARE DEVELOPERS"
Subscribe to Nextel2: http://www.groups.yahoo.com/subscribe/NEXTEL2

  "WIRELESS FORUM HOMELAND SECURITY GROUP"
     The Complete Resource for Wireless Homeland Security.
Subscribe to WFHSG:  http://www.groups.yahoo.com/subscribe/WFHSG

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/