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FCC Spectrum Regulations Drive Innovators to Bankruptcy



(p. A17) In 2004 the FCC moved to relax L-Band rules, permitting deployment of a terrestrial mobile network. Satellite calls would continue, but few were being made, and sharing frequencies with cellular devices made eminent sense. By 2010, L-Band licensee LightSquared was ready to build a state-of-the-art 4G network, and the FCC announced that the 40 MHz bandwidth would become available. LightSquared quickly spent about $4 billion of its planned $14 billion infrastructure rollout. Americans would soon enjoy a fifth nationwide wireless choice.

But in 2012 the FCC yanked LightSquared's licenses. Various interests, from commercial airlines to the Pentagon, complained that freeing up the L Band could cause interference with Global Positioning System devices, since they are tuned to adjacent frequencies. Yet cheap remedies--such as a gradual roll-out of new services while existing networks improved reception with better radio chips--were available. In reality, the costliest spectrum conflicts emanate from overprotecting old services at the expense of the new. With its licenses snatched away, LightSquared instantly plunged into bankruptcy.


. . .


. . . regulatory impediments continue to block progress. Years after the L-Band spectrum was slated for productive use in 4G, it lies fallow--now delaying upgrades to 5G.



For the full commentary, see:

Thomas W. Hazlett. "How Politics Stalls Wireless Innovation; The FCC unveiled its National Broadband Plan in 2010--but couldn't stick to it." The Wall Street Journal (Mon., Oct. 2, 2017): A17.

(Note: ellipses added.)

(Note: the online version of the commentary has the date Oct. 1, 2017.)


The commentary, quoted above, is related to the author's book:

Hazlett, Thomas W. The Political Spectrum: The Tumultuous Liberation of Wireless Technology, from Herbert Hoover to the Smartphone. New Haven, CT: Yale University Press, 2017.






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