FCC Eases Wireless Spectrum Rules

Wireless service providers now can more easily swap, share, and lease spectrum, based on a recent U.S. Federal Communications Commission move to revise rules that pertain to spectrum ownership.

The commission's decision earlier this month is expected to result in better wireless coverage in rural areas and might lead to the proliferation of broadband services to wireless users in rural areas of the United States

The new rules let carriers lease spectrum from other carriers without the FCC's involvement. Today, the commission is actively involved in the process of spectrum sharing between carriers and has the power to approve or reject such deals. The revised plan eliminates the approval process and is expected to fuel the expansion of wireless service availability.

"Access to spectrum is critical to development of a wireless broadband platform," FCC Chairman Michael Powell said in a statement.

Wireless Country

The revised rules let a carrier share spectrum with other providers. Spectrum sharing makes the most sense in rural areas, where a relative dearth of users results in excess capacity more often than is the case in most metropolitan areas.

Because spectrum owners now are permitted to lease portions of their networks to other service providers or even users, owners will be able to get the most out of their investments. Users who reside in or travel to rural areas also are expected to benefit in a couple of ways. Soon, users in less-populated areas should have a handful of wireless service providers to chose from instead of just one, which currently is the case in many rural areas.

Large enterprise users also will be able to lease spectrum either in areas where they have many employees or where they might be supporting an event over a week to a few months.

Access and the City

As more spectrum becomes available in highly populated areas, the revised rules also would benefit carriers and users in larger cities, says Roger Entner, an analyst at The Yankee Group.

Small service providers would be able to lease spectrum from larger carriers that have deeper pockets and can afford to buy more spectrum in upcoming auctions, he says.

The rules apply to a variety of wireless spectrums, including fixed wireless Local Multipoint Distribution Service and mobile Personal Communication Service spectrum.

While several providers, including Sprint PCS and AT&T Wireless, support the FCC's move to add more flexibility into spectrum-sharing issues, most are withholding comment until the FCC makes specific guidelines available to the public.

The new rules "should provide increased access to spectrum for consumers whose carriers had been spectrum-constrained, leading to fewer dropped calls and improved quality of service," says Tom Wheeler, president and CEO at the Cellular Telecommunications & Internet Association, an industry group representing wireless service providers.