Spectrum became a commodity of relevance with the invention of wireless communication. Most of the initial usage was anchored around defence applications. No special effort was made to harmonize spectrum across borders as the development of defence technologies was uncoordinated (on account of secrecy). Also, efficiency was least of the concerns, as plenty of it was available then. The advent of mobile telephony increased the importance of spectrum significantly. Two different versions of mobile technologies were developed in a gap of few years – the US AMPS (Advanced Mobile Phone System), and the European GSM (Global System for Mobile Communications), both using different spectrum bands. Since then the penetration of mobile phones has surpassed all expectations (McKinsey in 1980 predicted just 900K mobile subs in U.S by 2000) compelling us to focus on packing more users and optimizing device prices. Using spectrum efficiently allows us to pack more users per MHz, and aligning spectrum bands across countries reduces device prices by amortizing manufacturing and development costs across larger volumes (devices supporting many bands need more RF components). In spite of all the technological developments, spectrum continues to be scarce and its management complex – forcing mobile operators/developers to spend billions in auctions and equipment development cost (spectrum is 60% of CAPEX in India, and billions of dollars are spent in R&D worldwide). But on the other hand, WiFi devices are cheap and its spectrum available for free. Also, there are claims that some upcoming disruptive technologies can increase usage efficiency and mitigate the complexity of managing spectrum. The purpose of this note is to identify these opportunities/challenges and evaluate the ability of the disruptive technologies to overcome them.
Spectrum for Exclusive Use (Licensed)
