The government’s broadband stimulus money is creating a showdown of sorts in Washington, D.C.
The Federal Communications Commission will channel about $7.2 billion by February 2010 to companies interested in bringing broadband connections to under-served and not-yet-served rural areas of the country.
White space spectrum being shown here between TV channels
Of course numerous companies are interested: many established firms from the cable, telco and consumer electronics industries.
Perhaps the most contentious part of the plan has to do with the wireless spectrum to be made available by the switch to digital from analog television broadcasting. The release of the new spectrum could bring entrepreneurs into the picture – and more competition to the broadband business.
The change has freed up the unused white space spectrum (54 MHz to 698 MHz) previously used for over-air television signals. Congress set a June date for the release of the swath.
“The decision to open up new spectrum is one of the most contentious the FCC has ever made,” says ABI Research vice president Stan Schatt. “It’s the equivalent of the government opening up a previously untapped oilfield.”
That’s because signals at this wavelength can pass through features such as hills and forests – making the spectrum more valuable.
Service provider startups might see this spectrum as an opportunity to compete, especially in rural areas where there is a lot of white space available. And they might be able to tap into the $7.2 billion of funding waiting to be spent.
The broadcast industry is opposed to the white-spaces plan, concerned a generation of new devices will cause interference. Chip makers, device manufacturers and consumer-electronics companies are in favor, says ABI.
Opening up the white space would be just what the broadband business needs: more competition.
