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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 170.90-1.3%3:59 PM EST

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To: kech who wrote (5829)12/31/2000 9:52:11 AM
From: Eric L  Read Replies (1) of 196546
 
Re: Spectrum

Excerpts from a recent article by Andrew Seybold

>> More Spectrum For 3G

On Friday, October 13, 2000, President Clinton issued an executive order directing the FCC and other federal agencies to develop a plan for allocating 3G spectrum to U.S. wireless service providers.

Most U.S. wireless service providers believe that they need additional spectrum, but there is no "new" spectrum. It has all been allocated. If and when the federal government "finds" additional spectrum for 3G technologies, it will be at the expense of existing services that will have to be relocated, and the process will take time and money.

Why move to 3G?

As defined by FCC.gov/3g, 3G will provide for faster speeds and additional features.

But there is another and perhaps more compelling reason: By moving from 2G to 3G, wireless service providers can increase the number of voice users per megahertz of spectrum - and gain data capabilities virtually for free.

Where will the spectrum come from? There will be two auctions. The first will be a re-auction of 1900-MHz PCS spectrum that was held by companies that defaulted on their payments. The second will put 30 MHz from TV channels 60-69 on the auction block. After the 700-MHz auctions, the U.S. total will be only 218 MHz of spectrum for mobile wireless, which is still far below the rest of the world even though we have more "nationwide" service providers than most other countries.

The third source will become available as a result of the executive order. The most likely candidate so far is the 1700-MHz band, but the military would have to be cleared from this band.

The two auctions will go a long way toward helping wireless service providers fill out their footprints and move toward 2.5G or 3G. However, there seems to be no doubt that we need more spectrum. The issue is when it will be ready for service providers to use and how much it will cost. <<

- Eric -
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