Analysts at Citigroup released a report suggesting that the current wireless spectrum is sufficient for demand. The problem, is that current wireless operators that control large amounts of unused spectrum, are lacking the funds to build networks to use the spectrum available. Top-tier operators however, are using their spectrum holdings for existing services.
This comes in light due to lobbying on behalf of the FCC and CTIA, who have identified the need for additional wireless spectrums be made available for auction to keep up with demand for wireless data.
Citgroup’s writers for the report, Jason Bazinet and Michael Rollins, believe that the US does not face a spectrum shortage. “Too much spectrum is controlled by companies that are not planning on rolling out services or face business and financial challenges. And, larger carriers cannot readily convert a substantial portion of their spectrum to 4G services, because most existing spectrum provides 2G-3.5G services to current users.”
Companies such as Clearwire, LightSquared, and Dish Network are slow to establish networks, ultimately holding up much of the unused wireless spectrum. Citigroup also noted that true 4G would offer a more enriched wireless experience for the consumer, allowing “robust mobile use and limited home use”limited due to the current lack of replacements for large screen HD video streaming.
Citigroup offers the above companies a sort of cheer-leading by noting incumbent wireless carriers’ reluctance to accelerate the 4G experience. As LightSquared claims to “dramatically lower prices on the retail level and give consumers a brand-new option for wireless broadband,”up-and-coming carriers can properly distribute wireless spectrum to consumers and businesses.
Comcast recently announced its venture into the wireless industry with its nationwide, 800 cell tower strong network, furthering the claim that there is plenty of of spectrum left over.
Posted by David Yi, Social Media and SEO Assistant at Wireless Emporium