| The FCC is in the final stages of deciding if and how to authorize use of the TV broadcast "white space," which it could make available by early 2009. In this first-of-its-kind paradigm, we propose a detailed white space policy designed to maximize the amount of spectrum made available for “community” broadband networks. We highlight the federal government's historic opportunity to directly and fully serve the public interest. And as a final exercise, we consider the potential impact that our proposed free public networks would have on incumbents’ revenues.
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Introduction: The White Space Opportunity
- A more direct route to the public interest
- Public Interest IP (PIIP) networks
Background
Maximizing Value, Minimizing Interference
- Extending PIIPs via end-user LANs
The Free-Access Model
- Supporting the Cost of Free PIIPs
Synergies With Public Safety
Incumbents' Response
Impact on Incumbent Revenue
Incumbents as Allies?
Conclusion
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Broadcast Spectrum Should Be Used For New Community Broadband Networks, Report Concludes
SILVER SPRING, MD, April 23, 2007 - TV broadcast spectrum the federal government is considering making available in early 2009 could be used to create new community networks that dramatically expand the availability of broadband service, market research firm Pike & Fischer proposes in a new policy report. But such a step could have adverse effects on incumbent service providers such as cable operators and telephone companies.
In the report, Pike & Fischer contributing analyst Mitchell Shapiro proposes a model policy designed to maximize the amount of so-called "white space" spectrum made available on an unlicensed basis when TV broadcasters switch to an all-digital transmission in early 2009. The proposal refers to white-space-enabled networks as "Public Interest IP (PIIP)" networks. Shapiro's analysis suggests these networks may be able to provide broadband access at no charge, by supporting costs through a range of savings and efficiencies combined with advertising sales. And their cost structure and capabilities, including data rates and in-building coverage, will benefit from the addition of white space spectrum with robust transmission characteristics.
But free PIIP networks could cause commercial providers to lose market share and cut prices, the report speculates.
"Incumbents' existing revenue base and business models could be significantly at risk if the addition of white space spectrum triggers a snowballing of adoption of PIIP networks in communities around the country," Shapiro states.
Thus, incumbents may seek to preempt the proliferation of PIIP networks through legal and regulatory challenges and "anti-PIIP" public relations campaigns, the report says. But incumbents could also consider pursuing cooperative relationships with PIIPs in the delivery of services, the report suggests.
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Mitchell Shapiro
Mitchell Shapiro, a Senior Consultant for BAS, has been analyzing media and telecom markets for more than 17 years. He has authored numerous in-depth reports for Pike & Fischer on competitive dynamics, vendor shares and market growth in the broadband industry, including studies on the high-speed Internet pricing, the market for municipal broadband services and strategies for deploying fiber-optic networks. He also regularly tracks the financial performance and broadband initiatives of the regional Bell operating companies.
Mitch previously served as senior vice president at Probe Research, where he was responsible for the company's tracking and forecasts of broadband network, service and CPE markets. He has also served as a senior consultant with Pangrac & Associates, a broadband engineering and strategic consulting firm, and as an analyst with Paul Kagan Associates, where he tracked technology trends and equipment markets in the cable and cellular industries. He holds a B.A. in Economics from the University of Michigan and an M.A. in Telecommunications from Michigan State University.
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