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« UWB Retreats? | Main | Wee-Fi: Clearwire's New Name, Challenges; $3b in Wi-Fi; Meraki Offers $10K 1 Sq Mi Kit »

November 4, 2008

FCC Slams Out a Pile of News: White Spaces, Sprint/Clearwire, Verizon/Alltel

Because we didn't have enough on our minds on election day, the FCC met and made three relatively massive decisions: Let's start with white spaces. I have been avoiding posting too much about the topic, because it's mindbendingly boring to the average reader or businessperson who is more interested in technology or developments when they happen, not when they're discussed ad nauseum. The gist of the white spaces proposal is that computer industry giants want television channels that are unused in specific markets to provide assurance of a lack of interference among adjacent channels.

Microsoft, Google, Intel, HP, and many others covet the space to use for high-speed wireless networking for broadband and wireless LANs. Over short distances, rates rival 802.11n Wi-Fi speeds; over longer distances, speeds will likely be closer to 10 Mbps. The expectation is that the frequencies, way down in the 54 to 698 MHz range, would have enormously superior propagation characteristics when coupled with higher power limits than Wi-Fi's 2.4 GHz or 5 GHz deployments. With adaptive scanning required to avoid stepping on licensed users, the white spaces technology would likely be much more resilient than Wi-Fi, too, as well as having a larger span of channels on which to choose to operate.

The National Association of Broadcasters, representing owners of TV stations and networks, protested that regardless of how well designed devices were to avoid interfering with TV signals, it was inevitable that they would. Dolly Parton surprisingly entered the fray--nearly a la Wi-Fi patron Hedy Lamarr--on behalf of the wireless microphone industry, which has a licensed low-power use for theater and performance.

The FCC voted 5-0 to move forward. Manufacturers would still be going through tightly controlled FCC certification and testing for their devices, and one imagines the NAB will be watching very closely as well.

The FCC also voted 5-0 to approve a WiMax merger/spinoff that allows Sprint Nextel to reorganize its Xohm broadband operation into a new firm that would be merged with Clearwire's assets and be named Clearwire. The new operation already has billions lined up from Google, Intel, and cable operators to invest. The Justice Department already gave its general go-ahead, too.

This move sets the stage for a real battle among all broadband providers: it will force AT&T and Verizon to move quite aggressively to use the new 700 MHz bandwidth they acquired (and plan to deploy GSM-based LTE over, even though LTE is still officially in the lab, not in production); and for wireline provides like AT&T and Verizon, as well as Comcast, Cablevision, Qwest, and all the rest, to rethink pricing, speed, and services that Clearwire enters. If WiMax pans out as a viable third or even fourth pipe into the home, other broadband options in the same markets will be cheaper and faster.

Finally, in the least-interesting part of the news, the FCC voted to approve, with Dems partially dissenting--procedural thing, it appears--to allow Alltel to be acquired by Verizon to create the biggest U.S. cell carrier. Alltel was the largest of the smaller carriers, as it were, providing service in areas that the major carriers often overlooked. The Alltel acquisition is partially an infrastructure play that reduces Verizon's roaming costs while expanding its customer base.