3G gets boost from Bush - Top Technology Showcase

Computer Technology Review, August, 2002 by Joshua Piven

The Bush Administration has finally agreed to release a heretofore-restricted portion of the radio spectrum to enable third-generation (3G) wireless services in the United States.

The U.S. Department of Commerce's National Telecommunications and Information Administration said that a new plan will release 9MHz of new spectrum space, composed of 45MHz from the 1,710-1,755MHz band (now used exclusively by federal government agencies, including the Department of Defense), as well as 45MHz from the 2,110-2,170MHz band, currently occupied by private-sector companies.

The plan, known as the "3G Viability Assessment," builds upon the authorization in February of ultra wide-band as a commercially viable technology (see the April issue of CTR, available at www.wwpi.com).

The Cellular Telecommunications and Internet Association, a wireless industry consortium, reports that wireless voice and data usage has grown from 16 million subscribers using 20 billion total minutes in 1993 to 130 million subscribers using 450 billion minutes last year. While the government has been attempting to identify and release additional spectrum space for high-speed data and voice services since 1992, it was not until October of 2000 that the Clinton administration directed various agencies to implement a 3G wireless plan by July 2001.

This deadline passed with little progress. Meanwhile, U.S. companies watched as European countries allocated 155MHz of spectrum space for 3G services. The new plan, while a compromise, allows the U.S. to catch up to other countries, at least in terms of spectrum allocation.

The Department of Defense has agreed to relocate its systems within two years, but in no case later then 2008. Due to restrictions in the Strom Thurmond National Defense Authorization Act, any private sector company that receives spectrum space in the 1,710-1,755MHz band must reimburse government agencies for the cost of relocating or modifying their communications systems. According to government estimates, the cost to relocate non-military systems in the band is $210 million; estimates to relocate military assignments had not been determined at press time. (The 2,110-2,170MHz band has no such restrictions, since it is in the private sector.)

Industry players had also been requesting commercial access to the 1,755-1,770MHz band. The government panel determined that this portion of the spectrum is not viable for 3G services due to Department of Defense systems that cannot be easily relocated to other ranges.

While the new 90MHz of spectrum space is welcome news, International Telecommunication Union models have indicated that an ideal 3G allocation would be closer to 300-420MHz. Still, the new allocation will allow 3G U.S. phones to operate in Europe, long a demand from industry players.