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The 700mhz Spectrum Auction In Perspective

Posted by Zonk on Thu Jan 24, 2008 01:01 PM
from the kind-of-a-big-deal(tm) dept.
YIAAL writes "Writing in Popular Mechanics, Robert X. Cringely looks at the upcoming auction of the 700mbz spectrum, which is currently used for soon-to-be-defunct analog TV. 'Why are all these companies so excited? Because the 60 MHz of spectrum that's about to be auctioned is the last prime real estate for mobile communications that will be available in the U.S. for decades to come ... Some pundits (that would be me) think Google will bid to win its spectrum block, then will trade that block to Sprint/Nextel for some of that company's 2.5-GHz WiMAX licenses that are far better suited for data.' Plus, the prospect of offering unlicensed data service in the 'white space' between existing broadcast channels."

Related Stories

[+] Hardware: Google et al. Want 700 MHz Auction Opened Up 170 comments
The 700 MHz spectrum could give birth to the much-anticipated third pipe, but phone and cable lobbyists are currently pressuring the FCC to sell companies like AT&T and Verizon our airwaves — in a flawed auction process — so they can hoard this valuable spectrum and stifle competitive alternatives to their networks. Google and other would-be providers are not taking it lying down. They want the FCC to mandate that whoever wins the auction be required to sell access to those airwaves, at wholesale prices, to anyone wanting to provide broadband Internet service. They also want anonymous auctions to prevent the giant incumbents from manipulating the results against small players (as they have done in the past).
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  • Check your summary please! (Score:2, Insightful)

    What are we talking about here? Millihertz? Millibitz (or whatever the 'z' in mbz means)?
  • I've been deeply skeptical all along and now the _how_ google wins it is in place with this quote "trade that block to Sprint/Nextel"

    The _why_ this spectrum will be neither cheap nor open is in the quote "trade that block to Sprint/Nextel"

    Sigh...
  • Good Times (Score:3, Interesting)

    by usul294 (1163169) on Thursday January 24, @01:10PM (#22169234)
    I'm anxious to see what develops from this. The 700 Mhz band should have a fairly large range (greater than normal wi-fi), but less than a radio station for example, given the same power. I'm interested in what each of the bidders wants to use the band for, most likely for providing wireless internet. At first connection speed might be a problem though, but still acceptable for casual browsing and e-mail. maybe not fast enough for real-time youtube.
    • by RingDev (879105) on Thursday January 24, @01:16PM (#22169312) Homepage Journal
      And what would happen if one of the bid winners licensed existing TV stations to broadcast over some specific frequency just as they already are? Sure, it's not innovative or revolutionary, but the broadcast TV model has already proven profitable, and there are a LOT of people in the US with out HD TV's/Converters. Seems like there could be a rather solid market out there to continue the status quo, at least for a while until the HD penetration numbers rise.

      -Rick

      [ Parent ]
      • Re: (Score:2)

        TV broadcasting isn't all that profitable and is severely inefficient. The OTA converter boxes for the small minority who need one (and I am one... rooftop antenna and curbside free 25" TV is good enough for me) will be readily available soon enough. There
        • by hedwards (940851) on Thursday January 24, @02:06PM (#22170120)
          In general I agree, I've played around a bit with my wee small antenna and an atsc tuner, and the results are far better than I was getting with an ntsc tuner. The picture is crisp, clear and consistent in a way that the analog signal never was in this room.

          But anybody that lives out in the boonies, the places where getting quite a bit of static are going to be screwed over if they haven't gone satellite.

          Overall though, I think that the people that are screaming to maintain the status quo and the horribly inefficient allocation of the airwaves for an increasingly small minority need to think about the common good, and consider whether they have a right to forgo paying for a subsidized box if it means depriving everybody of the use of the spectrum.

          It would in many ways make more sense to subsidize a basic satellite package for people that live far enough away from the nearest broadcaster than to maintain the system as it is.

          Even if the spectrum is bought out by a company that misbehaves in the end, we still have an additional choice to make, whereas previously we had one fewer option. And that's a good thing either way, it gives a chance for a new service to sink or swim.
          [ Parent ]
          • by evilviper (135110) on Thursday January 24, @03:59PM (#22171990) Journal

            But anybody that lives out in the boonies, the places where getting quite a bit of static are going to be screwed over if they haven't gone satellite.

            Actually, you've got that exactly backwards. Those on the fringes who get ANY picture on analog TV stations, should expect to get a perfect ATSC signal. It has been proven in practice a great many times (a web search should turn up plenty of accounts). And more to the point, broadcast radius is, in fact, ATSC's biggest strength over DVB.
            [ Parent ]
      • by greensoap (566467) on Thursday January 24, @01:53PM (#22169902)
        Based on the auction rules, there is nothing limiting the potential licensees to which technologies they use the licenses for. (Except maybe the blocks designated for public safety.) The cost of each license is probably enough to prevent it. The cost and the geographic limitations that is; most licenses are fairly small (designed for potential Commercial Mobile Radio Services [CMRS]) the exception being Block C in the Upper 700 MHz with is broken into 12 geographic area groupings.

        Traditional analog broadcasts had higher power ratings and larger coverage areas than allowed by the new licenses. The reasons being that the broadcasts were all one direction and the broadcasters were attempting to get the signal to as many people as possible. The new licenses are designed with CMRS in mind. CMRS doesn't use the coverage TV broadcast did, the more coverage the more transmitters requiring a piece of the network. Whereas, TV there was just one transmitter. Because CMRS is all about two way communication, it makes more sense to keep the each transmitting network small and have many of them. That way you can let, say, 20 people transmit within a range of frequencies on 10th avenue and one block over allow a different set of 20 people to transmit within the same range (the network serving 40 people across the two city blocks). Increase the power rating, hence the range, now the same geographic area only serves 20 people because there isn't enough spectrum space to serve more within the frequency range. (Okay, very crude example with very little actual engineering. Somebody familiar with current GSM standards could provide a much more accurate example. But, this should convey the concept.)

        Because the licenses were designed with CMRS in mind, the power ratings are lower and the size of each "cell" is smaller. In order to have effective TV broadcast you would have to buy many of the license to ensure you didn't cause interference over another licensee's geographic coverage.

        Furthermore, it doesn't make sense for a broadcasting company to spend large dollars on new licenses when those broadcasters are all transitioning to digital TV. It makes more sense to just go with the transition and tell consumers that it isn't their fault because the government made them do.

        Basically, there is really nothing in the auction rules themselves, but economically speaking it would not be a wise business decision.
        [ Parent ]
      • Re: (Score:3, Informative)

        by Anonymous Coward
        Not trying to be rude here but...
        Um...you just came up with a solution to a problem that isn't even there.
        I'm not sure you know what the transition from Analog broadcast to Digital broadcast is all about. And you are not alone.

        Nobody is required to switch
      • Re: (Score:3, Interesting)

        the broadcast TV model has already proven profitable,

        And is becoming less profitable by the day...

        and there are a LOT of people in the US with out HD TV's/Converters.

        This is just stupid. People don't have converter boxes now, but by 2009 damn near all of
    • Re: (Score:2)

      They say that it can do 10mbits at 70km so I think it would be fast enough for YouTube.
      What it will not be fast enough for is streaming HD-Video to your home.
      The other problem with this spectrum is that the antenna has to be a lot larger than for a 2.4ghz.
  • Google: Hey Sprint/Nextel, trade you my 700 Mhz for your 2.5Ghz!
    (awkward pause)
    Sprint/Nextel: nah.
    (awkward pause)
    Google: ... damn!
  • The 700MHz Band is great for data (Score:4, Insightful)

    by VeriTea (795384) on Thursday January 24, @02:21PM (#22170380) Journal
    The article is just plain wrong when it states that the 2.5GHz band is superior for data, it is not. Throughput is primarily dependent on bandwidth, so 20MHz at in the 700MHz spectrum will effectively carry the same amount of data as 20MHz in the 2500MHz spectrum. The big difference is that Google can provide coverage in rural/suburban areas that have relatively low demand for throughput with far fewer sites. In urban areas Google can pack the sites just as closely together and will still be better off then they would with the 2.5GHz spectrum because they won't have to install in-building repeaters to ensure good coverage inside many of the buildings that would otherwise require such a system.
    • Re:The 700MHz Band is great for data (Score:4, Interesting)

      by morton2002 (200597) on Thursday January 24, @02:50PM (#22170876)
      The better propagation characteristics do have a drawback: limited frequency reuse. The cells will have to be spaced further apart to avoid overlap, resulting in more users communicating with the same tower. Furthermore 700 MHz doesn't have the scattering properties of higher frequencies that allows for multipath signal combining, which is tremendously useful in non-line-of-sight situations. This means that coverage in dense urban environments will have to rely exclusively on the partial propagation through buildings, which may leave shadows on a coverage map. These quiet zones could be targeted with additional tower placement, if not for the frequency reuse problem.
      [ Parent ]
    • Re:The 700MHz Band is great for data (Score:5, Informative)

      by slonik (108174) on Thursday January 24, @05:25PM (#22173362)
      The article is just plain wrong when it states that the 2.5GHz band is superior for data, it is not. Throughput is primarily dependent on bandwidth, so 20MHz at in the 700MHz spectrum will effectively carry the same amount of data as 20MHz in the 2500MHz spectrum.

      As someone who professionally designs cellular networks I can tell you that for data services 20MHz at 2.5GHz is much better than the same 20MHz at 700MHz. The data rate is determined not only by the channel bandwidth but also by the amount of interference that is generated by neighboring base stations. This interference depends on the RF propagation characteristics. At 2.5GHz the RF signals die off much faster with the distance than at 700MHz. As a result your interference levels will be lower at 2.5GHz. The downside is, of course, that cell coverage area of each individual base station will get smaller and you have to deploy them at substantially higher density. Rule of thumb: for voice you are coverage limited and you want your 700MHz (or 850MHz, ATT, Verizon) and big cells. For data you want small cells and high frequency band (2 or 2.5GHz).

      Just my two cents from the tranches.
      [ Parent ]
      • Re: (Score:3, Informative)

        Wrong. OP is correct. All things being equal you can fit the same amount of data in 700-720MHz as in 2.5-2.52GHz. As another poster mentioned [slashdot.org] the difference is not capacity, but instead reusability.
    • Helloooooo, McFlyyyyyyy! The coupons! (Score:4, Informative)

      by Anonymous Coward on Thursday January 24, @01:30PM (#22169494)
      They already have the coupon system ($40 off a tuner, and surely someone will make a simple one for less than that).

      You're a few years too late in your complaint.
      [ Parent ]
    • coupons here (Score:3, Interesting)

      You can get 2 $40 coupons at this site [dtv2009.gov]
      • Re: (Score:3, Insightful)

        You can sign up for the coupons, but the converter aren't available yet... Also I'd like to know if Tivo will support one or more of the converters. I have an analog Tivo with lifetime subscription. I'll be mighty pissed if they don't support a digital
    • Re:so whatabout my grandma? (Score:4, Funny)

      by ch-chuck (9622) on Thursday January 24, @01:39PM (#22169644) Homepage
      Yeah, it really sucked when they switched records from 78rpm to 33rpm - my grandfather had to go out and buy a whole new turntable and stylus, bastards.

      [ Parent ]
      • Re: (Score:3, Insightful)

        Except they didn't intentionally break the 78 setting on your grandpas record player.
    • Re: (Score:2)

      Why? Your proposal costs money to all manner of large corporations, whereas the present system means that people will be buying new TVs--hence giving the economy a boost, just like the gov't wants.

      O'course, someone with a bit of wherewithal and some co
    • Re: (Score:2, Interesting)

      This is already implemented. Not quite as extravagant as you propose, but there are coupons for up to 2 TV's per household that will cover close to the full cost of a digital tuner. People without cable or satellite have priority for some of the coupons.