SPECTRUM AN ISSUE FOR 3G TECHNOLOGY

By Tamara L. Cravit

The biggest impediment to the next generation of wireless technology may not be technical, it may be licensing.

In March, the National Technology and Information Agency released a report discussing the potential for so-called 3G, or third generation, wireless technology to share the 1.7 GHz frequency band with existing users. Telecommunications firms are eyeing the 1.7 GHz band as their best hope for a future of always-on, high-speed mobile Internet connectivity.

The agency looked at the question of whether existing users of the frequency—including the Department of Defense—could share the 1.7 GHz band, and whether they could be moved to different frequencies. The NTIA’s consensus does not bode well for 3G wireless.

Because the Department of Defense uses the 1.7 GHz frequency band for both classified command communications and to control military satellites, the NTIA concluded that frequency sharing was not feasible. Its estimate is that attempting to move those applications to other frequencies could take as long as 30 years and cost as much as $6.6 billion. That cost would need to be borne by the 3G wireless industry.

To move forward with the promise of 3G, the wireless industry is faced with an unpleasant choice: invest billions of dollars for an uncertain reward, or reinvent nascent technology yet again. For the companies betting their futures on 3G wireless technologies, there are no easy answers.

—Tamara L. Cravit