Spectrum and Wireless

In his recent paper, “Is There Really a Spectrum Crisis? Quantifying the Factors Affecting Spectrum License Value,” TPI’s Scott Wallsten found that spectrum auction prices increased from 2007 – 2011, suggesting that demand for wireless services outpaced technological improvements in spectrum usage and increases in spectrum supply. Both the Federal Communications Commission and Congress have made moving spectrum into the market a priority. Are the proposed spectrum auctions and release of spectrum for unlicensed uses enough to ease the “crunch”?

In his recent paper, “Is There Really a Spectrum Crisis? Quantifying the Factors Affecting Spectrum License Value,” TPI’s Scott Wallsten found that spectrum auction prices increased from 2007 – 2011, suggesting that demand for wireless services outpaced technological improvements in spectrum usage and increases in spectrum supply. Both the Federal Communications Commission and Congress have made moving spectrum into the market a priority. Are the proposed spectrum auctions and release of spectrum for unlicensed uses enough to ease the “crunch”?

Spectrum license values have steadily increased over the past five years, explains Scott Wallsten in “Is There Really a Spectrum Crisis? Quantifying the Factors Affecting Spectrum License Value.” From 2007 to 2011, spectrum auction prices in terms of dollars per MHz-pop increased, suggesting that demand for wireless services outpaced technological improvements in spectrum usage. Therefore, Wallsten advises, “The FCC and NTIA should continue to move spectrum into the market and ensure that spectrum already available be able to move smoothly and efficiently through secondary transactions.”