Is there more to the FCC's demand for Television to give up Wireless Spectrum?: [25th Feb 2010]

The Federal Communications Commission's broadband plan is to ask television broadcasters to give up unused wireless spectrum. The FCC have said they will offer a share of the profits once the spectrum is sold. The broadband plan is due out next month and will focus, in part, on freeing up 500Mhz of space. Julius Genachowski, the chairman of the FCC stated that the plan will suggest an auction of spectrum licenses. While broadcasters will not be forced to give up their spectrum space, the FCC do point out that many alternatives for television do exist. The unused portion of spectrum is estimated to be worth $50bn and the FCC have said it is vital for the future of wireless communication that it is freed up.


The FCC have released a report this week which shows that one third of households in the US do not have a fast broadband connection. This means that 80 million adults and 13 million children still do not have access to decent broadband speeds. 36% cited the cost of broadband as the reason they have not subscribed, while 10% say they do not know how to use the internet. Another 10% claim the internet is too dangerous to their finances or their morals. Of those who feel it is too expensive, most would get broadband if they could. For those earning less than $50,000 per year, just 52% have broadband, while for those earning above this level, the percentage who have broadband is 87%.


Further information on this survey by the FCC which is being prepared as part of it's broadband plan have shown that 15% of people in the US are using mobile wireless broadband on laptops. While the figure seems low, it is a new service and this figure shows that the idea is catching on quickly, according to experts. The survey made it clear that this was referring to a paid for service and not WiFi. The survey was carried out among 5000 adult Americans.


Cisco has revealed it is developing an ultra high speed system for internet access in partnership with with other US providers. The move has been compared to the recent announcement by Google that it will be trialling 1Gbps networks. Cicso have not commented on the plans, but has said that the US needs future proof networks that are accessible and affordable to all. It is thought that the fact that Cisco plans to work together with providers means that they may have more success than Google who appear to have alienated themselves from other suppliers. Cisco have also said that the Government may have some input into the new network, but that it will be built predominantly by the private sector.


Stimulus funds to this date have mostly been given to wireless and fibre optic programs around the US, but it has emerged that $100m has been put aside for satellite communications. The move has been welcomed by rural and remote areas who do not have access to cable or wireless services and rely heavily on satellite links. The funding will be used to allow satellite providers the opportunity to offer their customers discounts on the installation of the service. The amount offered has fallen short of the $500m which was asked for.


Wal-Mart is to buy broadband entertainment provider Vudu, giving them the opportunity to sell movies via televisions or over the internet. The terms of the deal have not yet been disclosed but the Chairman Eduardo Castro-Wright said in a statement that the acquisition will provide customers with access to home entertainment options which will be unprecedented. The service will be in competition with video on demand services from Timer Warner Cable and others. Previous attempts by Wal Mart to enter the internet movie business have failed and customers were bought by rival firms. However Vudu is able to offer 16000 movies which may swing the boat in their favour.