Spectrum Crunch Won’t Go Away, Kaplan Tells CTIA

"Obviously I can’t comment on the specific deal,” Kaplan said. “The spectrum crunch is real and regardless of which way [the merger] shakes out, we're going to have to get more spectrum online for broadband,” he said. “The demand is there.” Kaplan said if there were spectrum hoarding among carriers “we would be very concerned,” but no evidence exists. “I think it’s a red herring” and not “the real issue here,” Kaplan said.

Commissioner Mignon Clyburn will take a close look at the merger “to ensure that the ecosystem that we have continues to protect consumers,” said aide Louis Peraertz. “We will have an open mind as we review the details of the application and its impact on the competitive nature of the system.”

"Those of us who have been in spectrum for a long time know how long it takes to get spectrum on the table,” said Verizon Wireless Vice President Charla Rath. “What’s happening in any given year is very interesting, but it doesn’t affect how you ought to be thinking about the future."

Office of Engineering and Technology Chief Julius Knapp is excited to be at CTIA to see the new kinds of devices being put forward by manufacturers, he said. “It’s hard to believe that the wireless industry is coming up on 30 years old,” Knapp said. “I can remember when it was an achievement to have a phone that wasn’t hooked to something.” Knapp said the face of wireless “pales” in comparison to what’s on tap. The FCC is trying to ensure that the new devices “have the spectrum that they're going to need to thrive,” Knapp said. “We have to be efficient, but as the technology grows, we also have to have sufficient spectrum.” Spectrum demands may be even higher than expected, he said. “We're just in the early stages,” he said. “All of these things are going to consume spectrum.”

"We are all increasingly used to having multiple devices with a plethora of services, and we want them to work all the time -- wherever we go,” said Qualcomm Vice President Dean Brenner. He noted the growth of the use of tablets in the last year, and that just a few years ago no one knew what an e-reader was. “All of these services depend ultimately on more spectrum,” he said. “None of us know exactly where this spectrum crunch will hit, but we know it will hit.” Spectrum is “one area the entire industry has coalesced around,” though “broadcasters might not be there yet,” said Barbara Baffer, vice president at Ericsson. “More spectrum is paramount to survival.”

"I think the potential is enormous” in mobile healthcare, Brenner said. “There is just tremendous interest in the medical industry in moving forward.” Knapp said the FCC has approved waivers for numerous medical devices in need of spectrum, and hopes to provide spectrum for medical body area networks. Knapp said he has met many times with industry to talk about new devices. “You just walk out in awe at the possibilities,” he said. “I like to tell them I hope I never have to see your technology or use it, but if I do I'm glad it’s there.” Knapp said he’s “optimistic” the FCC will move forward on experimental licensing rules as proposed by the agency last year. In the initial comments round, most appeared to support the agency’s proposal, while some said the rules should be extended, he said.

Review of AT&T/T-Mobile won’t slow work on overhaul of the Universal Service Fund and of the intercarrier compensation regime, Jim Schlichting, senior deputy chief of the Wireless Bureau, said on a panel on universal service. “I don’t see any connection between the two,” he said “We've got a lot of folks at the commission."

That all five commissioners signed a blog last week on reform speaks to the level of interest in moving forward, Schlichting said. “Time is ripe,” he said. “We realize it’s very complicated -- but now’s the time to engage the commission. This is an opportunity.” CTIA Assistant Vice President Scott Bergmann said much of the FCC’s proposal for a revamp is positive for the wireless industry. “It talks a lot about mobile services and seeks comments on whether that should be its own priority,” he said.

USCellular is “very pleased” the FCC recognizes the role of wireless in USF, said Grant Spellmeyer, senior director. The “number one item” for his company is making USF a broadband fund, he said. Whatever form a proposed Connect America Fund takes, it must provide funding for wireless, Spellmeyer said. There must also be a clear link between USF and intercarrier compensation reform, he said. Spellmeyer said the FCC’s rulemaking notice does too much to accommodate the interests of small ILECs. “I see a whole number of things [proposed] like rights or first refusal” for incumbents, he said. “We don’t support that."

Verizon Wireless top priority remains capping the fund, said Vice President Tamara Preiss. “For consumers who ultimately pay for the fund, there is a limit to how much they can pay,” she said. “It’s all about setting priorities.” Verizon “wholeheartedly” agrees that the fund should be “repurposed” to pay for broadband, she said. “That is what consumers want,” she said: Broadband is “going to be the platform on which all services are delivered.” Spellmeyer also challenged the accuracy of broadband maps released by NTIA. “Sometimes it overstates the coverage and other times it understates the coverage,” he said. Schlichting said the FCC is analyzing wireless data on the map and comparing it to data from wireless database provider American Roamer.