FCC Delays 3G Allocation
The US Federal
Communications Commission is delaying the allocation of spectrum
for “third generation” (3G) wireless devices. In a June 26th
letter to the Department of Commerce, FCC Chairman Michael Powell
said that the FCC is working hard to find the best means to
allocate advanced wireless spectrum. The July 2001 deadline for
allocation, however, is considered by the FCC to be premature.
In
the fall of 2000, President Clinton urged the FCC to identify and
allocate spectrum for 3G wireless services. The FCC agreed to a
deadline of July 2001 so that the auction of spectrum could
commence according to plan on September 30, 2002. “As July draws
near, however,” Powell wrote “it is apparent that additional
time is necessary to allow the Commission and the Executive Branch
to complete a careful and complete evaluation of the various
possible options for making additional spectrum available for
advanced wireless services.” Powell further asked some
flexibility be given to the auction deadline, asserting that its
presence was adding significant strain to those working on the
allocation process.
According to the FCC, “3G
systems will provide access, by means of one or more radio links,
to a wide range of telecommunication services supported by the
fixed telecommunication networks and to other services that are
specific to mobile users. A range of mobile terminal types will be
encompassed, linking to terrestrial and/or satellite-based
networks, and the terminals may be designed for mobile or fixed
use. Key features of 3G systems are a high degree of commonality
of design worldwide, compatibility of services, use of small
pocket terminals with worldwide roaming capability, Internet and
other multimedia applications, and a wide range of services and
terminals.”
The notification of a delay
in allocation of 3G spectrum comes as a setback to the wireless
industry. It is not, however, the only challenge they are facing.
First and foremost, device
manufacturers have had a hard time convincing consumers that the
3G wireless Internet is everything it claims to be. Many experts
in the field have recently expressed serious doubts about the
ability of current technology to meet the demands of mobile
Internet users.
Furthermore, service
providers are having to invest staggering amounts of capital in
the construction of a 3G network including radio towers and base
stations. Estimates of these costs are in the range of $100-200
Billion. And although certain legislative action has recently
hinted that license winners will be able to split costs, the
investment required may still be enough to make some providers
think twice.
The
FCC thinks the airwaves are not yet ready for 3G devices. The
wireless industry can only hope that consumers can’t wait for
the day they are.