Friday, March 30, 2012

Carriers are warning that there simply isn't enough spectrum

There is no doubt that wireless networks are growing exponentially and in fact the rapid adoption of SmartPhones and Tablets are driving more and more demand for streaming video services.  Verizon is proposing to solve it's spectrum crunch by buying spectrum from cable companies such as Comcast, Cox and Time Warner.  This is an interesting play, Verizon is willing to fork over $3.9 billion for spectrum from the cable industry (acquired in various auctions over the years) and trying to sweeten the deal by offering to drive revenue to its network and Verizon's cable partners by delivering content in real time to their subscribers. And it eliminates wireless carrier competition at the same time.

While the business idea is intriguing, if there is a spectrum crunch as the carriers are saying, then won't this plan of driving more useless video drivel to be delivered in real time on the already overtaxed wireless networks just add to the spectrum problem?  Seems to me that it would indeed!

Makes me wonder if carriers really are experience any spectrum shortage!

Marc

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