After AWS: What's Next?
By Mary Lou Jay
The winning bids in last year's nearly $14 billion AWS (Advanced Wireless Spectrum) auction of the 1.7 GHz and 2.1 GHz bands portended some changes in the wireless marketplace. Leading carriers such as Verizon and Cingular Wireless scooped up large portions of the spectrum, but T-Mobile significantly closed the spectrum gap on its competitors as the auction’s largest bidder. Leap and MetroPCS also greatly increased their spectrum share and cable companies, not previously players in this market, acquired a respectable portion of bandwidth. The additional spectrum means there will undoubtedly be “something in the air” in terms of new or advanced services and offerings; but just what shape will those take?
The auction’s impact is likely to be more evolutionary than revolutionary, says Bill Plummer, vice president, external affairs, Nokia. “There’s this expectation
that the auction somehow represents the graduation from second generation to third generation services. But, in fact, we’re already seeing third generation services deployed by some operators, or actually at least some set of services being deployed by all operators in the U.S. “It does give the incumbent players more capacity, and it does bring some potential newcomers into the mix. Some of those newcomers are coming from a traditional fixed environment—cable would be a good example—so they’re going to have a different perspective on how content and services reach consumers, and that could introduce new dynamics to the marketplace. That’s a healthy thing for the incumbents and newcomers alike.”
Becoming a stronger national presence
In the AWS auction, T-Mobile spent $4.2 billion to acquire more than 120 licenses
across the U.S., achieving all of its major objectives, according to an October 2006 speech by company president and CEO Robert Dotson. The company doubled its spectrum position nationally, gaining parity with its competitors. It even gained some efficiency advantage, since it now has enough spectrum in the 1.7 and 2.1 GHz bands to enable it to operate within two bands, as compared to other carriers’ three bands or more.
“I think T-Mobile could really disrupt this market in terms of becoming a very aggressive, disruptive fourth player,” says Marina Amoroso, senior analyst, consumer research, mobility, for the Yankee Group. “It has the advantage of not
being in the number one or number two position, so it can afford to take some risks, to challenge the other carriers to be as competitive in offering products and services as T-Mobile can afford to offer them.”
CTIA Spectrum Clearinghouse, LLC
The FCC has designated CTIA-The Wireless Association® to act as a clearinghouse to facilitate the relocation of incumbent licensees now that the 2006 Advanced Wireless Services (AWS) auction is complete.
To ensure the independence and neutrality of its clearinghouse, CTIA has established a new entity, the CTIA Spectrum Clearinghouse, LLC, to serve as the non-profit cost-sharing clearinghouse.
The CTIA Spectrum Clearinghouse, LLC is committed to administering the cost?sharing functions for relocation of Broadband Radio Service (BRS) and Fixed Microwave Service (FS) incumbents from the 2.1 GHz band on a fair and equitable basis.