How Important Is Spectrum in Your Life?

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July 23 (Bloomberg) -- Bloomberg Businessweek's Sam Grobart explains the importance of spectrum in the wireless world on Bloomberg Television's "Lunch Money." (Source: Bloomberg)

Batteries, which have been linked to other airline fires.

At&t recently agreed to buy link wireless and the spectrum that comes with it.

Spectrum is basically a collection of wireless airwaves, the frequency that lets your mobile phone connect with a network.

Are you still confused?

We explain.

Spectrum is part of your digital life that you probably know nothing about.

Spectrum is invisible waves that allow us to translate video, audio, data.

Your cell phone, radio, and tablet streaming a movie from netflix are all using spectrum.

The federal government regulates spectrum and auction spectrum off to large companies like at&t and verizon or several smaller companies.

Like real estate, spectrum is all about location, location, location.

That is because not all spectrum is created equal.

Some is better for things like cell phone service and wi-fi.

Companies do two things.

One, they try to order spectrum they already have.

Two, they try to get more spectrum through government auction or by buying other companies.

This is causing some people to worry that we're rapidly approaching peak spectrum.

If the government is not auction off more spectrum, get ready for a lot more dropped calls.

Hello?

Hello hello?

Can you hear me?

Can you hear me hear it?

Can you hear me here?

Some companies may stockpile spectrum to keep it out of the hands of competitors.

Furthermore, newer wireless networks can use spectrum more efficiently.

We can drill for more oil.

We can also build more fuel- efficient cars.

If the government allocates spectrum efficiently, there should be plenty of milkshake to go around.

This text has been automatically generated. It may not be 100% accurate.

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