UHF freqency auction threatens wireless industry


In 2009, UHF television stations will abandon analog frequencies as they shift to digital. The frequencies that they will abandon will soon go on the FCC's auction block, and the result could shape the internet and wireless industry for decades to come.

These frequencies, in the 700 mhz range (channels 52-68), are desirable because they travel long distances without interference. Any company wanting to build a national wireless broadband network would find UHF the perfect foundation. In an age of growing connectivity, the profit potential of owning such a backbone is enormous.

The players are already lined up to fight for the frequencies. As you can imagine, the cell phone companies will be players, if for no other reason than to keep new competitors out of their market. Other bidders may include satellite television providers such as DirecTV, and rich internet moguls including Google (NASDAQ:GOOG).

The most interesting bid might be that of Frontline Wireless, a company put together by e-business investors and wireless veterans. They propose building a nationwide network under open source protocol, acting as a passive wholesaler of access to one and all. Frontline further sweetens the offer by proposing to reserve part of the spectrum for a national intergrated emergency services system, the need for which became painfully apparent during Katrina.

This would be the definition of a disruptive technology. It would allow local, smaller companies to offer broadband wireless internet connection, including VOIP. With a single stroke, Frontline's system could threaten the cellular industry, cable and satellite television, and networks built on platforms such as WiMax.

The results of such an auction are often preordained by the rules that are set for the process, and usually favor existing players in the market. However, in this instance, the voice of local law enforcement just might make a difference. If so, it could change the wireless market overnight.

We'll know soon, as the FCC is to announce its decision within the next few weeks.

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Last updated: February 10, 2012: 05:30 AM

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