FCC Chairman Lays Out Plan To Drive Mobile Web Growth And Avert A Spectrum Crisis

Julius Genachowski of the FCC

Federal Communications Commission Chairman Julius Genachowski is urging the mobile industry to continue driving economic growth and job creation. He told attendees at the CTIA Wireless I.T. & Entertainment and International 2009 in San Diego, Calif. on Wednesday that in recent years, the wireless sector has averaged a 16% annual rate of growth.

Assisting in efforts to drive growth, Genachowski introduced a four-part plan. He says the FCC will unleash more spectrum for the wireless industry, remove any regulatory obstacles that can slow progress of mobile 4G broadband networks under construction, develop fair rules to preserve the openness of the Internet, and empower consumers by supporting a transparent and competitive marketplace. The Mobile Broadband Agenda also includes net neutrality to ensure that consumers receive access to legal content on mobile wireless networks.

Mobile broadband continues to increase in importance as people connect wirelessly to each other and to the Internet to conduct the daily business of life such as finding a job, discovering new music, reading the news, and tweeting wherever and whenever -- as long as they are not driving, he quipped.

In the past six months in 2009, wireless data service revenue reached nearly $19.5 billion -- up 31% during the same six months in the prior year, according to the CTIA. Wireless data accounted for about 25% of revenue -- up nearly 40%, respectively. The number of subscribers also continues to increase. The CTIA estimates more than 276 million total subscribers. About 740 billion text messages were transmitted across carrier networks in the first half of the year.

"Spectrum is the oxygen of the 4G networks," Genachowski says. "While the short-term outlook for 4G spectrum availability is adequate, the long-term picture is very different. In fact, the biggest threat to the future of mobile in America is the looming spectrum crises. The CTIA said much the same thing in a letter to the FCC last week."

Mobile data use is not just growing, it's exploding. Genachowski says that by some estimates, it will grow from 6 pedabytes per month in 2008 to nearly 400 pedabytes per month in 2013.

While businesses and consumers can expect additional spectrum to come online, Genachowski says the FCC has authorized a "three-fold increase" for business, including last year's 700 megahertz. The problem is that many anticipate a "30-fold increase."

Genachowski says the FCC wants people to become more engaged in the future and plans to keep an open dialog with businesses and consumers.

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