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Jan. 14, 2010

In an unexpected move, the FCC is changing its decision from a proposal to reclaim spectrum from TV broadcasters for favoring wireless broadband services, according to an agency executive.

The original proposal was met with heavy opposition from broadcasters who argued it would greatly limit the potential of digital television broadcasting.

Instead of forcing television broadcasters to give up their spectrum, the FCC plans to make the option to sell spectrum holdings voluntary, at least for the time being.

The Federal Communications Commission is also considering several other measures, including using DTS (distributed transmission system) transmitters to more efficiently re-engineer broadcast network architecture, repacking station allotments and auctioning off some "overlay" licenses similar to was done in the mid-1990’s.

Phil Bellaria, director of scenario planning for the FCC's National Broadband Task Force says “The preference is to establish voluntary, market-based options to enable broadcasters who chose to do so to relinquish their TV spectrum and to receive at least some kind of compensation.”

But Bellaria added that the FCC would also have to reconsider the issue if its voluntary proposals failed in Congress or did not garner the needed amount of spectrum needed.

“Both of these options, along with the more heavy-handed mandatory option, are within the authority of the FCC but would take longer time to market,” Bellaria added.

"In the past, the record overwhelmingly demonstrates that there's a strong need for additional spectrum for mobile broadband services. We continue to believe that all spectrum should be on the table for potential reallocation, including the almost 300 MHz allocated for broadcast TV use, which is spectrum most favorable to wireless broadband. We look forward to working with the FCC and the broadband team to consider mechanisms to place spectrum to its highest use," said Bellaria.

In response to the news of the FCC’s lighter approach to reallocating broadcast television spectrum, CTIA President and CEO Steve Largent urged the agency to move aggressively to free up the airwaves for wireless broadband.

Overall, the wireless and mobile segment of the industry is facing an imminent spectrum crisis as high-bandwidth applications threaten to crash already overburdened networks.

FCC Chairman Julius Genachowski promised to address the issue in October 2009. The proposal to reallocate spectrum from broadcasters to mobile broadband providers was one of the measures considered to address the spectrum shortage.

In light of all this, it will be interesting to see in the coming week the reactions of other groups as it concerns spectrum allocation.

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Source: The FCC.