(Image source: CNNMoney)
BY CHRISTINE KARSTEN
ANCHOR MEGAN MURPHY
Are smartphones causing a shortage in wireless airwaves?
Some experts say that’s the case— and facing the reality of fewer open airwaves, underdog mobile phone companies like T-Mobile are fighting for spectrum. KGO reports.
“T-mobile is asking the FCC to stop the deal between Verizon, Comcast, Time Warner, Bright House Networks and Cox. It would place an excessive concentration of wireless spectrum in Verizon's hands.”
It is not just T-Mobile who is worrying about a potential agreement between Verizon and Comcast. The New York Times has a quote from Senator Al Franken saying this partnership could be bad for customers.
“ ‘These joint-marketing agreements will turn these rival companies into partners, rather than competitors,’ Senator Al Franken, Democrat of Minnesota, wrote in a letter to the F.C.C. earlier this month. ‘I fear this will ultimately mean less competition, less choice, and higher prices for consumers.’ ”
But the bigger problem— the wireless spectrum is a finite resource. CNN says there are few options for wireless companies. They can either acquire new spectrum space or build tens of thousands of new cell sites.
“Both of those options cost billions. There's a third choice: consolidate. By merging, carriers can gain access to both spectrum and more cell sites. That can also cost billions, but it's a turn-key solution.”
According to KTVX — the government and broadcast TV stations currently take up most of the spectrum, and...
“Congress just approved a plan that would allow the auction of unused spectrum licenses. That may offer a temporary fix but may also come at a cost that is passed on to wireless users.”
And those costs to customers ain’t just about cash. Kozmedia reports…
“The problem, known as the ‘spectrum crunch,’ threatens to increase the number of dropped calls, slow down data speeds and raise customers’ prices. It will also whittle down the nation’s number of wireless carriers and create a deeper financial divide between those companies that have capacity and those that don’t.”
According to Seattle University’s Spectator Blog — some analysts believe the spectrum could run out of space as early as next year.