Commentary
Spectrum, Here! Get Yer Spectrum, Heeeere!
According to an analyst over at Pyramid Research, 3G spectrum has been highly overpriced, while WiMax spectrum is undervalued. Though companies aren't exactly snapping up WiMax licenses like CrackerJacks, with the looming build-out of WiMax networks, the days of (relatively) cheap WiMax spectrum are at an end.According to an analyst over at Pyramid Research, 3G spectrum has been highly overpriced, while WiMax spectrum is undervalued. Though companies aren't exactly snapping up WiMax licenses like CrackerJacks, with the looming build-out of WiMax networks, the days of (relatively) cheap WiMax spectrum are at an end.One of the biggest reasons for the price differential is that 3G licenses are national and WiMax licenses are regional. When a network operator sets out to buy 3G spectrum, it doesn't just buy the spectrum in one region, it typically buys the spectrum for an entire country. Conversely, WiMax licenses have been sold on a regional basis, covering metropolitan areas or other similar regions, creating islands of WiMax coverage. Pyramid Research notes that Vodafone paid $9.4 billion for its national spectrum back in 2000. The highest price at a WiMax spectrum auction fetched just $3.2 million to cover Greater London.
Another reason is that mobile network operators have been desperate for 3G licenses, banking on them as a key part of their future. With many mobile operators clamoring for spectrum, it's no surprise that good old supply and demand reared its ugly head and sent prices skyward. In September 2006, the FCC raked in $13.7 billion in 3G and other licenses, which far exceeded the minimum-hoped-for figure of $7 billion.
More Mobility Insights
White Papers
- The BlackBerry PlayBook tablet's Good Bones - by BlackBerry
- New Visual and Wizard-Driven Paradigms for Exploring Data and Developing Analytic Workflows
Reports
- Mobility’s Next Challenge: 8 Steps to a Secure Environment
- Time to Move: How to Ensure 'Mobility' Translates to 'Agility'
Webcasts
- Maximize ROI with Database Consolidation onto Private Clouds
- The ABC's of Cloud Computing in the Midmarket
To date, companies bidding on WiMax are generally smaller players with smaller bank accounts. With the exception of Sprint in the United States, none of the major operators has made a serious push for WiMax licenses. That could very well change depending on the success of Sprint's first two WiMax markets, set to launch in Washington, D.C., and Baltimore later this year.
As regulators across the world -- most notably in Europe -- begin to make more spectrum available, the price per MHz per population will certainly climb. Hopefully it won't reach the scale that 3G licenses have.
Related Reading
| To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy. | |
|
|
T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting! |
Subscribe to RSSResource Links
This Week's Issue
Technology Whitepapers
- Mobile BI: Actionable Intelligence for the Agile Enterprise
- Creating the Enterprise-Class Tablet Environment - by Yankee Group
- The BlackBerry PlayBook tablet's Good Bones - by BlackBerry
- Red Alert: Why Tablet Security Matters - by BlackBerry
- New Visual and Wizard-Driven Paradigms for Exploring Data and Developing Analytic Workflows
Featured Resource
This white paper focuses on the critical need to manage outbound content sent via various avenues including email, Instant Messages, text messages, tweets, and Facebook posts. Read More












