The Spectrum
A pedestrian uses a mobile phone on Orchard Road in Singapore, on Monday, Feb. 29, 2016. Singapore's Infocomm Development Authority plans to auction additional mobile spectrum this year as it seeks to lure a new entrant to compete with the city's three existing providers.
Photographer: Nicky Loh/BloombergWe’re hungry for something we can’t see, taste or weigh: the spectrum. These invisible electromagnetic waves carry radio, TV broadcasts and, increasingly, full-length movies to our smartphones. Worldwide mobile use is soaring, and capacity is being strained. So operators are going after airwaves once used for television broadcasts, since these travel far and penetrate buildings. They’re also looking toward tiny waves that just might enable the next generation of mobile to run even faster. The spectrum keepers, also known as governments, see opportunities to earn some cash.
The U.S. completed a spectrum auction in April that raised a total of $19.8 billion, with $7.3 billion going to pay down the national debt. Another $10 billion went to the 175 television stations that relinquished frequencies no longer needed in an age of digital broadcasts. Mobile operators had begged the government to free up spectrum to meet rising demand. U.S. wireless devices have more than tripled since 2000 to reach 396 million in 2016. Video accounted for half of total U.S. mobile data traffic in 2012; by 2020 it’s expected to be three-quarters. Beyond the freshly available TV spectrum, operators are also eyeing new bands that could be used for 5G, the fifth generation of mobile service. These high-frequency bands, called millimeter waves because they’re 1 to 10 mm long, are so weak they can even be scattered by rain. But they’re much faster and, with more base stations to extend their reach, could eventually provide streaming service that’s 10 times faster than 4G. Globally, smartphone subscriptions grew more than 17 percent from 2015 to 2016, to reach 3.9 billion. Without greater mobile bandwidth, users could suffer more dropped calls and crashed applications. Dozens of countries — including Canada, France, Israel and Mexico — have used auctions to make more spectrum available.