FCC Chairman Julius Genachowski announced last week at the Consumer Electronics Show in Las Vegas that the FCC would take action to free up 195 megahertz of spectrum in the 5 gigahertz band for unlicensed use, in hopes of boosting WiFi networks at airports, convention centers and other busy public networks. The reaction from lawmakers in both parties has been largely positive, a stark contrast from recent discussions on freeing up more spectrum for unlicensed use, which is quickly becoming a partisan issue. Republicans have increasingly been questioning the wisdom of setting aside airwaves from the upcoming spectrum incentive auction for unlicensed use, arguing that the cost and scarcity of available spectrum dictates that it should be set aside for the growing appetites of the wireless companies. Democrats have consistently pushed for more unlicensed spectrum, noting the wide range of innovations and benefits fostered by public access to the airwaves, including WiFi and garage door openers.
But the real driving force behind the opposition to unlicensed spectrum likely comes from the wireless and broadband companies, for whom cheap, public WiFi represents a serious economic threat. The FCC moved to free up the lower-frequency airwaves between TV channels known as white space during the transition from digital to analog; the hope was that the newly unlicensed spectrum would enable long-range WiFi networks capable of covering towns, rather than a few rooms in a single building. But mobile-data consumption has quickly become the primary demand of smartphone users, and the traditional services such as voice calling and TV watching have become integrated and available on almost any device equipped with Internet. In other words, for savvy technology users, a single high-speed Internet connection is now capable of replacing separate accounts for phone, cable, broadband, and wireless access. If newer WiFi technologies are capable of providing said connections for larger pockets of users at lower cost, it could spell major trouble for the bottom lines of both the ISPs and wireless carriers.
Thus far, the FCC has rebuffed attempts to limit its release of unlicensed spectrum, but expect this debate to continue right up to the spectrum auction set for 2014. The 5 GHz band is already in use by both public and private users, so some effort will be required to free up those airwaves and ease congestion over popular WiFi networks. But the real battle over unlicensed spectrum is only beginning, and the folks with the most to lose are not likely to weigh in directly. The loudest voices of opposition will likely come from the Hill, where it will be readily apparent which lawmakers are most concerned over the prospect of the wireless carriers and ISPs losing their stranglehold over connections to the Internet.
FCC Amps Up Scrutiny on 911 Networks: The FCC plans to step up its regulation of 911 emergency networks after last summer's derecho storm highlighted systemic failures in the emergency telecommunications networks. The June storm left millions without power and damaged 77 emergency call centers in six states, leaving millions unable to call 911 for days. An FCC report released last week blames the industry's lack of preparation for the issues. FCC Chairman Genachowski plans to propose requiring telephone service operators to conduct regular audits of emergency circuits, maintain backup power generators, introduce maintenance and testing procedures, and notify 911 call centers when communications networks break down. Expect some resistance from phone carriers, but the FCC has wide jurisdiction over emergency services and will likely push the rules through over any opposition. Business Group Offers Modest Cybersecurity Plan: The Business Roundtable committed to a set of voluntary measures to protect private sector networks as part of its cybersecurity recommendations released last week. The business group has already endorsed information-sharing legislation and opposed mandatory security standards as supported by the House and Senate respectively, and is now looking toward the 113th Congress, where cybersecurity legislation remains up in the air. Industry has not softened on its opposition to cybersecurity rules such as those proposed by the Obama administration and Senate Democrats, making an executive order the only likely outlet for new cybersecurity regulations for the private sector. An information-sharing measure would stand a better chance in Congress, if the privacy concerns can be addressed via negotiation. From CQ Weekly: 2012 Legislative Summary on Cybersecurity Issa Questions E-Health Record Payments: House Oversight Chairman Darrell Issa, R-Calif., has asked the Obama administration to hand over more information on a Medicare incentive program designed to encourage the adoption of electronic medical records. Issa's concern was stoked by an IG report highlighting the lack of oversight to ensure that hospitals and providers receiving the incentive payments meet established standards. He said a significant portion of the $6.6 billion in expected payments could go to ineligible recipients.