The following USA Today article says that there isn't sufficient radio spectrum available here in the U.S. for the implementation of 3G wireless services. As far as governmental ineptitude, this would take the cake, JohnG, far in excess of any beaurocratic bundling the EU has done, and would severely retard the growth of the U.S. market. As the U.S. is Qualcomm's stronghold, this development should be of intense interest to Qualcomm shareholders.
usatoday.com
Faster, glitzier wireless service faces hurdles
By Paul Davidson, USA TODAY
The mobile phone industry may not be able to secure the airwaves it says it needs to provide "third-generation" services, such as video and audio, to small wireless devices.
Two federal reports due out next week are expected to oppose proposals to free up two prime radio frequency bands for so-called 3G services by displacing the current users.
Among other features, 3G would let mobile customers use hand-held gadgets or laptops to surf the Web quickly, view electronic maps and transfer big files from PCs. Today's Web services on cellphones are frustratingly slow.
Sprint PCS and Verizon Communications still plan to roll out early versions of 3G by next year, and some experts say enough spectrum is available for the short term. But the inability to snare choice airwaves could mean delays in rolling out advanced services as well as higher retail costs and slower transmission speeds, industry executives say.
"Without (the spectrum), we will not have services comparable to those around the world," says Steve Sharkey of Motorola, a top manufacturer. That could hamper U.S. ability to compete in a global economy, wireless officials say.
The most coveted spectrum is now used by the Defense Department for satellite tracking, radio communication and other purposes.
A Commerce Department report based largely on Pentagon input will say that sharing those airwaves with 3G services would cause excessive interference, say industry representatives familiar with the report. And moving the military to other airwaves would be too disruptive, the study is expected to say. Sharkey disputes both contentions.
Defense says it could move many services by 2010 and others by 2017. That's too late, some executives say.
The Federal Communications Commission is expected to issue a similarly gloomy report on the prospect of freeing another chunk of airwaves. That swath is used by schools for distance learning and by carriers that beam high-speed data to offices via antennas.
An important consideration for the wireless industry is that an international consortium earmarked three frequency bands — including these two under review — for worldwide usage.
Global consistency would let customers use the same devices anywhere. Making different equipment for different countries "substantially increases costs" and retail prices, and delays rollouts, says Barbara Baffer of Ericsson.
"I don't buy that," says Gartner analyst Bob Egan, adding that future software-based devices will be able to work with networks on various frequencies. And some experts are skeptical about 3G, citing lukewarm demand.
Although Commerce and the FCC will not make final decisions until summer, the reports signal their leanings.
Mobile phone executives still hope to persuade the Bush administration to override a Defense view largely formed under the Clinton administration. |