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July 3, 2001 - E-Pass Washington

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.

Relevant Sources:

3G at the FCC

Powell's Letter to Commerce

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