Mobile Technology and Spectrum Policy Innovation and Competition Updated September 30 2014 Congressional Research Service https crsreports congress gov R43595 Mobile Technology and Spectrum Policy Innovation and Competition Summary The convergence of Internet and mobile technologies has within the last decade transformed wireless communications and created a dynamo of innovation and economic growth The list of applications that enable products and provide services through smart wireless devices is long and growing rapidly as new industries incorporate wireless technologies into their products Wireless and mobile telecommunications products include not only smart phones and tablets but also utility meters road traffic sensors robots autonomous vehicles unmanned aerial systems tractors and household appliances to cite but a few examples of existing and new technologies that are widely predicted to bring about profound changes in how Americans work and play The composition of the wireless telecommunications industry is changing as companies with important stakes in spectrum-dependent technologies move from innovation to implementation The arrival of these technologies is accompanied by a crowd of policy questions covering issues such as employment training education privacy cybersecurity and research and development This report focuses on the interaction between technological change and spectrum policy and how the accelerating pace of change may require a timely transition to new spectrum policies Emerging technologies may require or work better with new network concepts to carry wireless transmissions over distances long or short The arrival of new products new services and new concepts in network design may lead to the introduction of new models of competition and investment that might benefit from new spectrum policies Spectrum policy today focuses on the expansion of commercial broadband with the goal of continuing recent growth trends attributed to the mobile Internet Expanding policy to more fully include other technologies—including those being developed for the Fifth Generation 5G of wireless communications—might advance a new telecommunications environment with greater potential for spurring innovation competition and economic growth than what has been observed in recent years This report traces the current and possible future evolution of mobile communications networks and some of the changes in spectrum policy that might better accommodate innovation Congress at present is engaged in debates over how to maximize the value—economic monetary or other—of upcoming auctions for spectrum licenses notably the Broadcast Incentive Auction required by the Spectrum Act in 2012 P L 112-96 Title VI The evolution of wireless technologies as outlined in this report indicates that auctions as presently structured are a limited policy tool Congress therefore may move to reconsider the current goals of spectrum policy to more fully accommodate the development of the next generation of wireless technologies In future reviews of communications law and spectrum policy Congress may choose to broaden its scope to include spectrum-dependent industries and technologies beyond the telecommunications sector Congressional Research Service Mobile Technology and Spectrum Policy Innovation and Competition Contents Economic Growth Innovation and Demand for Radio Frequency Spectrum 1 Spectrum-Dependent Industries 3 Innovation and Transition 4 Current Environment 4 Access to Radio Frequency Spectrum 4 Economies of Scale 5 Standards 5 Harmonization 7 Transition 7 Innovation 9 Disadvantages of LTE Network Architecture 11 The Scalable Network Innovation Competition Investment 12 The Arrival of Fifth Generation Networks 13 Changing Spectrum Policy to Accommodate New Technology 14 Spectrum Auctions 15 Reallocation and Assignment Broadcast Incentive Auction 16 Participation and License Coverage 17 Reallocation and Assignment 3 5 GHz 19 Participation and Coverage 19 Evolution of Spectrum Policy 20 Access to Radio Frequency Spectrum 20 Economies of Scale 21 Standardization 21 Harmonization 22 Internet Infrastructure 22 Developing the Small Cell Network 22 Policy Considerations for Congress 24 Figures Figure 1 3G-Macro Network 8 Figure 2 LTE Heterogeneous Network 9 Figure 3 Small Cell Neighborhood Micro Network 10 Figure 4 Scalable Mobile Access Networks 12 Appendixes Appendix Spectrum-Dependent Technologies 25 Contacts Author Information 27 Congressional Research Service Mobile Technology and Spectrum Policy Innovation and Competition Congressional Research Service Mobile Technology and Spectrum Policy Innovation and Competition Economic Growth Innovation and Demand for Radio Frequency Spectrum By most measures the United States leads the world in the deployment of mobile broadband technology1—networks devices applications products and services—creating a mini-boom of innovation and entrepreneurship and associated wealth and jobs 2 Innovations in mobile broadband use the Internet Protocol IP to bring new devices applications and technologies to the airwaves Cellular Long Term Evolution LTE and Wi-Fi are key standards that provide mobile broadband access to the Internet and IP-enabled networks Projections of significant growth in demand for mobile broadband—and hence for spectrum capacity—have prompted numerous policy initiatives to identify radio frequencies that can be made available for commercial mobile broadband services Finding additional spectrum for commercial mobile broadband has been a goal for both the Administration and Congress The Federal Communications Commission FCC —which manages radio frequency spectrum for commercial and other non-federal uses—and the National Telecommunications and Information Administration NTIA —which represents federal government users—are addressing some regulatory and policy issues such as those identified in the National Broadband Plan NBP 3 For example the NBP cited spectrum capacity as a critical input for expansion of mobile broadband and set a goal of providing 500 MHz of additional spectrum by 2020 to support expected growth President Barack Obama issued a Presidential Memorandum4 in support of the NBP’s spectrum goals and among other actions instructed the NTIA to work with the FCC in identifying spectrum used by federal agencies to transfer to the commercial sector 5 The 112th Congress addressed some of the issues of spectrum allocation and assignment in the Middle Class Tax Relief and Job Creation Act of 2012 P L 112-96 Title VI “Spectrum Act” 6 The primary intent of the spectrum-clearing provisions of the act appears to be to increase the number of exclusive-use spectrum licenses for mobile broadband coverage Among its provisions the Spectrum Act included mechanisms to reassign television broadcast spectrum Broadcast Incentive Auction for licenses to be auctioned and to transfer spectrum assets from federal to commercial use The act also addressed the need for unlicensed spectrum heavily used for Wi-Fi communications among other applications It included allowances for unlicensed spectrum in planning for 1 Broadband delivers large amounts of data at high speeds The IP-technology currently being deployed for broadband is Long Term Evolution LTE which is categorized as a fourth-generation 4G wireless technology The next version of LTE known as LTE Advanced is now being deployed in the United States requiring new investment in infrastructure Information about LTE at http www 4gamericas org index cfm fuseaction page sectionid 249 about LTE Advanced at http www 4gamericas org index cfm fuseaction page sectionid 352 2 The White House Office of Science and Technology Policy The National Economic Council Four Years of Broadband Growth June 2013 3 Federal Communications Commission Connecting America The National Broadband Plan March 17 2010 http download broadband gov plan national-broadband-plan pdf 4 Presidential Memorandum Unleashing the Wireless Broadband Revolution June 28 2010 5 Key NTIA actions are discussed in CRS Report R42886 The National Telecommunications and Information Administration NTIA Issues for the 113th Congress by Linda K Moore 6 Key provisions in the act are discussed in CRS Report R43256 Spectrum Policy Provisions in the 2012 Spectrum Act by Linda K Moore Congressional Research Service 1 Mobile Technology and Spectrum Policy Innovation and Competition repurposed broadcast spectrum and called for the release of spectrum in the 5 GHz band7 for unlicensed use Many of the frequencies at 5 GHz are currently allocated for federal use As new wireless technologies are introduced and perfected access to spectrum capacity is becoming essential to doing business and to life-style choices Debates within Congress regarding spectrum policy cover a wide range of concerns such as competition economic growth access to wireless services affordability and opportunities for new entrants Much of the debate appears based on assumptions about wireless technology and spectrum demand and capacity that may not fully recognize the ever-accelerating pace of technological innovation Policy goals that focus on supporting commercial mobile broadband may favor commercial wireless carriers at the expense of other industry sectors that will require spectrum for future growth Policy makers largely recognize the need to strike a balance between meeting immediate needs to sustain growth for mobile broadband and finding solutions to support future growth in other wireless technologies such as those discussed below and in the Appendix Nonetheless there appears to be a significant and widening gap between what emerging wireless technologies require and current spectrum policy delivers Faced with this apparent policy vacuum the 113 th Congress has posed the question of what changes may be required in order to provide sufficient spectrum capacity for the future 8 Future questions from Congress may introduce a wide-based discussion about established goals for competition and access 9 and about the demands on spectrum capacity made by new technologies 10 In addition to mobile broadband many other technologies that promise substantial growth through innovation also require access to spectrum Policy makers may choose to explore how spectrum policy can support sustainable innovation and growth in emerging wireless technologies through better management of spectrum resources Policy makers involved in the debate on spectrum policy may wish to see Congress take a leadership role in identifying the changes in law regulation and policy that are needed to fuel broad-based growth of wireless technologies Others may prefer a minimal role for Congress and greater latitude for market forces to resolve the challenges presented by new technology 7 For purposes of allocation and assignment spectrum is segmented into bands of radio frequencies measured in cycles per second or hertz Standard abbreviations for measuring frequencies include kHz—kilohertz or thousands of hertz MHz—megahertz or millions of hertz and GHz—gigahertz or billions of hertz The designation can refer to an entire band such as the 5 GHz band or to specific frequencies 8 U S House of Representatives Committee on Energy and Commerce Subcommittee on Communications and Technology Background Memos and Hearings “Equipping Carriers and Agencies in the Wireless Era ” June 27 2013 “Challenges and Opportunities in the 5GHz Spectrum Band ” November 13 2013 and “Oversight of the Federal Communications Commission May 20 2014 Also U S Senate Committee on Commerce Science and Transportation Subcommittee on Communications Technology and the Internet Hearing “The State of Wireless Communications ” June 4 2013 The Committee of Energy and Commerce has issued a white paper entitled “Modernizing U S Spectrum Policy ” which lays out a series of questions about spectrum policy that Congress may act to address April 1 2014 link at http energycommerce house gov press-release committee-releases-commactupdatewhite-paper-focused-spectrum-policy 9 The Omnibus Budget Reconciliation Act of 1993 P L 103-66 amended the Communications Act of 1934 with a number of important provisions affecting the availability of spectrum The act laid out the general requirements for the FCC to establish a competitive bidding methodology and consider in the process objectives such as the development and rapid deployment of new technologies 47 U S C §309 j especially 1 3 and 4 The law prohibited the FCC from making spectrum allocation decisions based “solely or predominately on the expectation of Federal revenues ” 47 U S C §309 j 7 A 10 U S House of Representatives Committee on Small Business hearing “Building on the Wireless Revolution Opportunities and Barriers for Small Firms ” February 11 2014 Congressional Research Service 2 Mobile Technology and Spectrum Policy Innovation and Competition Spectrum-Dependent Industries A May 2013 study by McKinsey Company11 identified a dozen “disruptive technologies” and the industries that are likely to significantly change the ways that people and businesses organize their work and personal life styles At least five of the technologies identified in the report McKinsey report are dependent on licensed and unlicensed spectrum to be fully functional These technologies and others offer opportunities for economic expansion but often bring with them shifts in demand for human capital unmet needs for new skills challenges to security and privacy and other changes that may need to be addressed with new public policies Similarly new policies and regulations may be needed to make room for innovation while equitably preserving the value of existing infrastructure where possible One of the impacts of disruptive technologies is on business models new ways of business flourish and old business practices wither The Internet is an example of a disruptive technology Its impact is far-reaching and still growing One of the early impacts of the Internet was to change and eventually diminish the role of proprietary network technologies Business plans that were built on attaining market share through control of a superior proprietary network were eroded or made obsolete Today some maturing companies that built business plans on expectations of how the Internet would be deployed are faced with accommodating shifts in market demand from the wired Internet to the mobile Internet 12 Today the IP standard developed for the wired Internet is being incorporated into mobile network standards tomorrow a new standard for the mobile Internet may emerge setting off a new cycle of technological innovation and infrastructure investment 13 In the McKinsey report technologies were evaluated according to projected increases in growth globally Based on the report categories of disruptive technologies that offer significant opportunities for growth and are dependent on access for spectrum to achieve much of that growth are      Mobile Internet mobile broadband devices that access the Internet Cloud technology access to off-site computing and other information-based capabilities Internet of Things the interconnection of electronic and mechanical devices through the Internet also known as the Internet of Everything Advanced robotics high-level robots that equal or exceed human abilities to perform tasks and Autonomous and near-autonomous vehicles any vehicle land-based airborne or maritime that moves with little or no human intervention In addition other industry sectors cited by the McKinsey report as affected by disruptive technologies may also rely in part on wireless technology for example the electric power grid 11 McKinsey Global Institute Disruptive Technologies Advances that will transform life business and the global economy May 2013 available at http www mckinsey com insights business_technology disruptive_technologies Note that projections are for global growth and may not accurately represent a technology’s role in the U S economy 12 See for example “A Bruising Fight for Survival mobbed by mobile devices big players in PCs struggle to adapt ” by Nick Wingfield The New York Times July 29 2013 13 See for example “DARPA Seeks Clean-Slate Ideas for Mobile Ad Hoc Networks MANETS ” DARPA April 30 2013 at http www darpa mil NewsEvents Releases 2013 04 30 aspx National Science Foundation Future Internet Project http www nets-fia net and Named Data Networking http named-data net Congressional Research Service 3 Mobile Technology and Spectrum Policy Innovation and Competition requires wireless communications to manage information about demand and usage and gas and oil exploration and production use wireless sensors A summary of the McKinsey report discussion of selected disruptive technologies appears in the Appendix Although not all-inclusive the list indicates the wide range of spectrum-dependent technologies and the critical role they may play in economic growth A number of these technologies were originally developed by the Defense Advanced Research Projects Agency DARPA Other than the mobile Internet the McKinsey report did not explore the dependence of these technologies on wireless communications or discuss their need for spectrum capacity Broadband for the mobile Internet may be an essential part of mobile technology but in the long run its future development may have less impact on U S economic growth and productivity than mobile technologies used to support emerging technologies such as those described by McKinsey as disruptive The benefits of innovation are rarely evenly distributed There are often unintended consequences and some sectors of society and the economy may suffer harm Therefore not everyone will agree that some of the disruptive technologies discussed by McKinsey and in this report should be nurtured The focus of this report is the value of spectrum access to a broad range of industries beyond the traditional telecommunications field Spectrum policy may inadvertently restrict that access thereby creating a de facto industrial policy without full consideration of the value of the affected industries and their ability to innovate Innovation and Transition Disruptive technologies by their nature lead to additional innovation new markets new business models new forms of competition new investment opportunities and other changes Innovation and entrepreneurship may be curtailed if regulatory policies favor one technology one market or one business model over others Consistent regulatory policies however tend to be beneficial for existing businesses and investors to the extent that they provide certainty and establish parameters for doing business There are challenges in making the transition to new policies just as there are challenges in making the transition from one technology to another In the case of wireless technology successive introductions of new technology in general build on past investments in infrastructure Current Environment Key factors that—separately or together—may shape current policy decisions and regulations regarding spectrum access include 1 high demand for spectrum access 2 competitive benefits from economies of scale for wireless carriers 3 standardization and 4 global harmonization of spectrum allocation Access to Radio Frequency Spectrum Spectrum bands have typically been allocated for a type of use such as television broadcasting or Advanced Wireless Services AWS and assigned through licensing Most commercial license assignments in the United States are now done through the auction of licenses for exclusive ownership which conveys the right to exclusive use although license-holders may sublet access to their holdings Some spectrum is allocated for unlicensed use which permits access through certification of specific devices and the enforcement of regulations limiting interference among Congressional Research Service 4 Mobile Technology and Spectrum Policy Innovation and Competition users Unlicensed spectrum is shared by approved devices with access determined largely by the type of device in use Access to licensed spectrum may also be shared One common model for sharing today is for two or more commercial license-holders to reach a contractual agreement to share Another common model is for federal users to permit commercial access to its assigned frequencies often on a geographic basis access to some areas and or a time basis certain times of a day or specific days In these shared environments access is dependent in part on permission by the primary user or license-holder Economies of Scale The current environment for commercial mobile network expansion appears to favor continued investment by large often global carriers in LTE and LTE Advanced network infrastructure Regulatory policy assumes that wireless communications deployments benefit from economies of scale because of required investments in technology-driven infrastructure among other causes For example U S wireless carriers reportedly spent over $34 billion on their networks in 2013 14 Much of this was spent on what is sometimes referred to as the macro network that is the typical configuration of cell towers and base stations linked above ground by wireless microwave transmissions and below ground by fiber-optic networks The macro network facilitates nationwide wireless coverage The high costs and difficulties in raising capital to cover these investments may place smaller carriers at a competitive disadvantage 15 Furthermore the high cost of entry may discourage new competitors Not including the price of purchasing spectrum licenses billions of dollars are required to build new infrastructure The sunk costs of incumbent wireless service providers therefore set a high bar for new entrants if they are to compete effectively in major markets Furthermore existing wireless carriers with substantial investments in infrastructure and large customer bases are generally prepared to pay more at auction than high-risk new ventures reinforcing barriers to new entrants Standards Industry standards provide numerous benefits such as improved interoperability of systems and equipment lower manufacturing costs and greater ease-of-use for consumers Standards may also be established by one industry group at the expense of other groups that may not have been active participants in the standards development process Wireless standards adopted by market leaders for mobile broadband may place smaller rivals at a competitive disadvantage or preclude innovation and growth in other industries 16 Regulators and policy makers may rely on standards-setting groups to provide technical frameworks for regulations and policy goals Standards may be reproduced in rules and 14 Testimony of Randal S Milch Executive Vice President and General Counsel Verizon Communications Inc U S Senate Committee on the Judiciary Subcommittee on Antitrust Competition Policy and Consumer Rights “An Examination of Competition in the Wireless Market ” February 26 2014 15 Thomas Gryta “U S Cellular NTELOS in Focus After Leap Wireless Buy ” Wall Street Journal July 15 2013 16 For example 3GPP created separate standards for two band classes in the 700 MHz band After Auction 73 for commercial licenses in the 700 MHz band small carriers were concentrated in a less-favored band class in the lower half of the 700 MHz band These carriers complained to the FCC that manufacturers were not providing devices for their band class because of the limited size of the market They requested the FCC to mandate interoperability across all band plans in the lower 700 MHz band Among the countervailing arguments against interoperability was that it would undermine future investments in 3GPP standards An agreement was reached for a voluntary industry solution In October 2013 the FCC adopted a Report and Order and Order of Proposed Modification to implement the agreement http www fcc gov document 700-mhz-interoperability Congressional Research Service 5 Mobile Technology and Spectrum Policy Innovation and Competition regulations—such as rules established by the FCC for spectrum license auctions—that some stake-holders view as perpetuating existing business models to the possible disadvantage of new entrants with different business models 17 In the United States the two sets of standards most used for new wireless broadband technologies are cellular LTE for licensed spectrum and IEEE Institute of Electrical and Electronics Engineers 802 11 for unlicensed spectrum There are additional IEEE standards for Wide Area Networks An LTE standard has been developed to operate on unlicensed spectrum LTE-U The main standards-setting body for LTE LTE Advanced is the Third Generation Partnership Project 3GPP 18 Standards organizations represented through members of 3GPP are the European Telecommunications Standards Institute ETSI 19 the Alliance for Telecommunications Industry Standards ATIS 20 and several Asian standards groups 21 Policy decisions about unlicensed spectrum are generally centered on providing additional capacity for channels used for Wi-Fi Standards for Wi-Fi are developed by the IEEE 802 11 Working Group and supported by the Wi-Fi Alliance 22 Activities of the Alliance an industry association include support of industry standards certification of devices and development of new product specifications The 802 11 suite of standards includes 802 11 a the original Wi-Fi standard for operations at 5 GHz and 802 11b designated for Wi-Fi at 2 4 GHz New spectrum assignments are being sought within the 5 GHz range23 for the expansion of 802 11 ac VHT Very High Transmission sometimes known as Gigabit Wi-Fi 24 Spectrum that has been made available for Wi-Fi on TV White Spaces is accessed by 802 11 af sometimes referred to as White-Fi Gigabit Wi-Fi White-Fi and other new standards use technologies that can identify locations of users to manage transmissions without causing interference These standards which are sometimes referred to as Fifth-Generation Wi-Fi are important building blocks in developing new forms of sharing such as between federal and commercial network operators 17 For example public comments regarding service rules for spectrum licenses in the 700 MHz band that were auctioned in 2008 Auction 73 revealed significant differences between wireless carriers and the wireless technology industry The latter argued—with little success—for rules that would increase spectrum access for new entrants and new businesses 18 Information about 3GPP is at http www 3gpp org about-3gpp 3GPP is represented in the United States by 4G Americas http www 4gamericas org index cfm fuseaction home The mission of 4G Americas is “to promote facilitate and advocate for the deployment and adoption of the 3GPP family of technologies” and “to develop the expansive wireless ecosystem of networks devices and applications enabled by GSM and its evolution to LTE ” 19 Information about ETSI at http www etsi org about introduction 20 ATIS and the Telecommunications Industry Association TIA are global standards development groups based in the United States Information about ATIS at http www atis org Information about TIA at http www tiaonline org about 21 About 70% of the approximately 400 members of 3GPP are represented as members of ETSI ATIS represents about 8% of members including the top four U S wireless carriers The balance of members are represented through Asian standards groups See http www 3gpp org about-3gpp membership 22 Information about the Wi-Fi Alliance at http www wi-fi org 23 As required by the Spectrum Act the FCC commenced a proceeding to identify new unlicensed spectrum capacity at 5 GHz http www fcc gov document 5-ghz-unlicensed-spectrum-unii See also CRS Report R43256 Spectrum Policy Provisions in the 2012 Spectrum Act by Linda K Moore 24 Using the International Electrical and Electronic Engineers standard IEEE 802 11ac see http www ieee org index html Also link to tutorial at http www radio-electronics com info wireless wi-fi ieee-802-11ac-gigabit php Congressional Research Service 6 Mobile Technology and Spectrum Policy Innovation and Competition Harmonization Harmonization refers to the allocation of spectrum across national borders Compatible designations for using spectrum facilitate economies of scale in designing and producing wireless devices Harmonization also facilitates cross-border travel and trade among other benefits The global champion for harmonization is the International Telecommunications Union ITU the lead United Nations agency for information and communications technologies 25 ETSI 3GPP and the GSM Association26 are among the groups that work closely with the ITU in developing standards to harmonize spectrum for mobile broadband Agreements on international harmonization are typically negotiated as treaties under the auspices of periodic World Radio Conferences WRC 27 supported by the ITU There are over 30 spectrum harmonization proposals currently under consideration by the WRC Many of these proposals would require repurposing spectrum band allocations to accommodate mobile broadband Proposals for harmonization and coordination of spectrum access are also being developed by national and international groups for wireless technologies for machine-to-machine communications robotics maritime terrestrial and aerial unmanned vehicles cloud computing and other emerging technologies 28 One aspect of harmonization that may be an issue is that requirements for standards may be part of the agreement For mobile technologies there appears to be an inclination to make LTE the default standard for harmonized frequencies Also harmonization of unlicensed spectrum has proved difficult to negotiate in international discussions The global trend therefore might be described as harmonization for licensed spectrum assigned exclusively to network operators using LTE LTE Advanced standards Transition As wireless carriers increase their deployment of the mobile Internet delivered by broadband LTE technologies new trends are developing in network design and investment strategies The development of and constant improvements in small cell technologies29 have enabled the deployment of Heterogeneous Networks or HetNets In an LTE environment a HetNet is viewed See http www itu int en about Pages default aspx The Government Accountability Office notes that “The federal government considers ITU the principal competent and appropriate international organization for the purpose of formulating international treaties and understandings regarding certain telecommunications matters ” Better Coordination and Enhanced Accountability Needed to Improve Spectrum Management GAO-02-906 September 2003 p 19 fn 26 26 The standards developed by the Groupe Special Mobile GSM were first adopted by European Union member countries deployment began in 1998 The GSMA global membership is comprised of GSM and LTE network operators http www gsma com aboutus history 27 The next WRC WRC-2015 is scheduled to occur in November 2015 http www itu int en ITU-R conferences wrc 2015 Pages default aspx Separate tracks of preparations to develop the U S positions on WRC agenda items are handled by the FCC and the NTIA The Office of Spectrum Management of NTIA in consultation with federal agencies reviews the WRC agenda and prepares its comments for the U S position NTIA and the FCC solicit input from the private sector and create working groups to address specific agenda items NTIA and the FCC submit recommendations to the Department of State The Department of State coordinates and mediates the development of the U S position for each WRC and leads the U S delegation at each conference 28 For some examples see http ec europa eu digital-agenda en rspp-roadmap-wireless-europeand http ec europa eu digital-agenda 29 Small cells are low-powered radio access nodes that are used to boost capacity and manage network interference and connectivity The types of small cells are Femtocells typically used in a home Picocells that may serve a business Metrocells for urban areas and Microcells the largest in terms of geographic coverage used primarily in rural areas 25 Congressional Research Service 7 Mobile Technology and Spectrum Policy Innovation and Competition as an extension of LTE network concepts and standards HetNets combine macro and micro infrastructure to increase the reach of wireless transmissions The macro network is a high-site cellular network operating on dedicated spectrum and relying on fixed infrastructure such as towers and masts The micro network is composed of multiple placements of low-site small cells 30 These micro networks operate on licensed or unlicensed spectrum Wireless carriers are investing in sites for small cell installations in order to increase network capacity and building out micro networks to supplement or possibly replace investment in more capital-intensive macro networks Within the LTE LTE Advanced technology development envelope many industry experts predict a shift in investment from building macro networks to building micro networks 31 Figure 1 depicts a built-out Third-Generation 3G macro network Its primary physical components are antennas for transmitting and receiving wireless signals—placed on towers tall buildings or other structures—and base stations for connecting to other communications networks such as the Public Switched Telephone Network and the Internet Investment in towers and base stations is critical to providing coverage and ubiquitous service to geographic areas that typically correspond to spectrum licenses for exclusive use Figure 1 3G-Macro Network Source Peter Rysavy research for 4G Americas Mobile Broadband Explosion the 3GPP Wireless Evolution August 2013 Figure 57 p 117 http www rysavy com Articles 2013-08-4G-Americas-Mobile-Broadband-Explosion pdf Figure 2 shows an example of a HetNet composed of a partly-built LTE network bolstered by a micro network of small cells being used as a bridge between 3G infrastructure and LTE towers The micro network for the most part connects to the infrastructure that supports the macro network base stations In this simplified schematic the 3G macro layer switch connects to the Internet and other networks through the IP gateway serving the 4G macro and micro layers The 4G macro base stations and small cell locations are all IP-enabled The geographic layer represents the communities served by the HetNet A HetNet build-out typically uses spectrum licensed to the carrier to carry traffic over both macro towers and small cell placements Additional capacity is provided by Wi-Fi The LTE micro network serves many of the same customers in the geographic layer as Wide Area Networks WAN using IEEE 802 11 Wi-Fi WAN 30 High site refers to antenna placed on cell towers or other tall structures to maximize coverage in a large geographic area Low site indicates that the placement of antennas for small cells is not dependent on height to provide coverage 31 A projection of capital expenditures prepared by Mobile Experts shows investment in macro networks plateauing in 2014 and then trending downward while investment in small cell infrastructure continues to rise The data might be interpreted to indicate that the trend lines will cross as early as 2020 “Mobile Infrastructure Trends ” May 2014 Congressional Research Service 8 Mobile Technology and Spectrum Policy Innovation and Competition Figure 2 LTE Heterogeneous Network Source Peter Rysavy research for 4G Americas Mobile Broadband Explosion the 3GPP Wireless Evolution August 2013 Figure 57 p 117 http www rysavy com Articles 2013-08-4G-Americas-Mobile-Broadband-Explosion pdf This depiction of a HetNet configuration assumes that LTE will become the predominate technology for micro networks using both licensed and unlicensed spectrum The effectiveness of the HetNet in linking macro and micro network infrastructure depends in part on the proximity of IP-enabled network nodes The key elements of the network architecture are     LTE macro network which would typically be considered the transport network Network interfaces such as the IP gateways Micro network which increases capacity and coverage and End users and their devices residing in the geographic layer The macro network provides coverage and the micro network provides capacity as well as extra coverage In urban areas a HetNet may carry as much as 80% of its traffic over unlicensed Wi-Fi In the macro network the geographic layer corresponds roughly to license coverage as designated by the FCC Micro networks operate within geographic areas that are smaller in coverage than the licenses assigned for 3G and 4G build-outs Innovation In the future micro networks may use spectrum licensed for their purpose and the coverage areas for these licenses may correspond to small cell neighborhoods A possible trend in the evolution of mobile networks is depicted in Figure 3 In this configuration the micro network has become the predominate provider of mobile communications coverage and capacity through contiguous small cell networks The towers of the macro network enhance connectivity and provide additional coverage Micro networks for small cell neighborhoods exist within or are independent of HetNets Small cell networks are by and large autonomous providing coverage for their area Congressional Research Service 9 Mobile Technology and Spectrum Policy Innovation and Competition and connecting to other small cell networks or cellular towers when needed Such a configuration might lead to widespread spectrum sharing The transition from macro to small cell networks as the main providers of wireless capacity would change the dynamic of spectrum demand Low-frequency wide coverage high-site cellular networks that require exclusive licenses for efficient operation would no longer be the drivers of growth and change A backbone of cellular towers would remain to serve the evergrowing ever-changing micro networks that are more agile and more responsive to the needs of a wide range of wireless customers Figure 3 Small Cell Neighborhood Micro Network Source 4G Americas Meeting the 100X Challenge The Need for Spectrum Technology and Policy Innovation October 2013 Figure AI-1 p 130 http www 4gamericas org documents 2013_4G%20Americas%20Meeting%20the%201000x%20Challenge%2010%204%2013_FINAL pdf As the network becomes decentralized with more traffic carried through localized small cell networks the towers of the macro network might be used primarily for high-value communications that require for example a high level of Quality of Service QoS 32 One attribute of QoS is the minimization of interference by using dedicated radio frequencies Assuring QoS is one of the arguments for requiring dedicated spectrum for mobile broadband As the number of small cell networks multiply increasing coverage mobile communications will likely become less dependent on macro networks and their traffic might decline In this case there would likely be an over-supply of spectrum for macro networks and possibly a spectrum crunch for small cell networks Therefore if the majority of mobile traffic uses shared spectrum in small cell networks the amount of dedicated spectrum required for the macro network might conceivably be reduced Since small cell networks are expected by most technologists to perform well in shared conditions spectrum sharing—including perhaps licenses that mandate sharing—may provide more effective tools for promoting competition and growth Transition might occur as an evolution first from macro to micro networks and then from centralized network controls to user-controlled mobile devices connecting through traffic management centers that will migrate to the cloud as technology permits Today’s cellular 32 A set of techniques to manage network resources predictability is an example of a service quality attribute Congressional Research Service 10 Mobile Technology and Spectrum Policy Innovation and Competition network is predicted to be one of many transport options with small cell network physical structure integrated into devices or small cell neighborhood structures The combination of cloud technology and small cell networks may provide significant savings in capital expenditures for wireless companies For example as reported in the Financial Times 33 AT T is planning to move some functions of switches and routers to cloud-based softwaredefined networks Consequently the company expects in the future to reduce capital expenditures on networks The Financial Times article quoted an industry analyst who stated “AT T is transforming the wide area network the way Information Technology transformed the data center ” The evolution of the HetNet is supported by advances in LTE and IEEE standards Expected innovations within the LTE envelope are planned for incremental change within linear cellular network architectures LTE LTE Advanced however does not encompass the universe of wireless innovation IEEE standards have in general been more flexible in accommodating non-cellular communications for emerging technologies such as robotics True innovation it might be argued would occur through wireless network technologies that emulate the Internet by using multiple connections that transfer traffic seamlessly from one node to another Disadvantages of LTE Network Architecture Spectrum policies in general favor cellular network architecture For example the FCC’s working definition of flexible-use service rules for spectrum is apparently based on technical rules for high-site high power cellular antennas 34 Although LTE standards provide the framework for high-speed IP-based networks LTE’s limitations may be a barrier to the development of more advanced network architectures that are fully aligned with the design principles of the Internet A study in late 2012 by two researchers at AT T Labs35 suggested “a fresh new look” at design strategies and service assumptions in order to move mobile communications away from its “cellular circuit-oriented” origins The study noted that LTE traces its heritage to the General Packet Radio Services GPRS designed to add packet-switched functionality to GSM and uses the same basic approach to moving communications traffic to and from a centralized gateway The evolution from GPRS to LTE is described as “tunnel-centric architecture ” The flaws of this architecture as described in the study become barriers to future scaling and innovation The paper commented on the rise in mobile traffic and the “unexpected side effect due to interactions between cellular network architecture and the constant connectivity” required by always-on mobile devices such as smartphones Maintaining this connectivity strains “gateways and other network elements ” To support wireless devices such as sensors a critical element in many disruptive technologies as discussed in the Appendix using current LTE tunnel-centric architecture would require either permanent connections or the addition of “expensive” network signaling to manage usage the researchers argued Paul Taylor “AT T Shifts to ‘Virtualised’ Hardware ” Financial Times February 26 2014 “Interference Limits Policy ” White Paper FCC Technical Advisory Committee Receivers and Spectrum Working Group February 6 2013 http transition fcc gov bureaus oet tac tacdocs WhitePaperTACInterferenceLimitsv1 0 pdf 35 Byoung-Jo J Kim and Paul S Henry “Directions for future cellular mobile network architecture ” First Monday Peer-Reviewed Journal on the Internet December 3 2012 http firstmonday org ojs index php fm article view 4204 33 34 Congressional Research Service 11 Mobile Technology and Spectrum Policy Innovation and Competition The Scalable Network Innovation Competition Investment Although micro networks were first seen by wireless carriers as a way to increase the capacity of their macro networks it is becoming evident to many that micro networks can also be the primary means of providing wireless access A small cell network can be treated as a separate business enterprise and customers within a closely inter-dependent geographic area can be targeted for additional services 36 To improve the effectiveness of mobile connectivity wireless networks are themselves likely to become more mobile flexible and deployable nomadic Network infrastructure will move closer to the devices it currently supports as the enabling technologies migrate from the macro to the small cell network Next-generation traffic management centers will connect to corresponding nodes that connect directly to the Internet instead of through a cellular core network To provide coverage cell tower networks may be supplemented by satellites or by Unmanned Aerial Systems UAS using for example drones 37 Figure 4 Scalable Mobile Access Networks Source Congressional Research Service CRS In the design proposal depicted in Figure 4 the IP-enabled core uses cloud technology to connect end users to the Internet The widespread availability of small cell locations and multiple options for transporting traffic allows for scalability ranging for example from a small sports stadium to a large urban area 38 The key elements of this evolved network architecture are James Middleton “Small Cells Should Be Seen as Businesses Not Engineering Solution ” telecoms com February 12 2014 and Dan Jones “SpiderCloud Eyes LTE Enterprise Small Cells in 2014 ” News Analysis LightReading January 17 2014 37 Examples include DARPA’s Mobile Hotspots Program that will retrofit drones to provide Wi-Fi to remote areas Facebook’s plans to develop drone technology to assure global Internet connectivity and Google’s acquisition of drone-maker Titan Aerospace 38 A presentation on small cell technology by Alcatel Lucent provides a good picture of scalability and the use of micro networks for LTE FCC Workshop on 3 5 GHz Spectrum Access System January 14 2014 http wireless fcc gov workshop OVERVIEW%20-%20Milind%20Buddhikot%20-%20Alcatel%20Lucent pdf 36 Congressional Research Service 12 Mobile Technology and Spectrum Policy Innovation and Competition    End users and their devices which using small cells and new technologies are the main drivers of the network Network interfaces operating largely through the cloud and The transport layer which now includes macro cell towers micro small cells and other systems satellite UAS that are integrated and interchangeable In the future depicted in Figure 4 network architecture is no longer dominated by fixed towers and cellular technology Access is consumer-driven not network-controlled Wireless traffic from a plethora of devices is directed through a new generation of traffic management centers to any IP-enabled transport link The traffic management connections access most physical infrastructure through the cloud 39 Coverage is assured through any IP-enabled transport system whether fixed cell towers fixed or deployable small cells satellites unmanned aerial systems or other In this environment economies of scale can be achieved through cloud technology not by network consolidation and spectrum license aggregation Ownership of exclusive-use licenses may not therefore be essential to assure ubiquitous coverage may no longer be relevant for achieving important economies of scale and may be counter to policy goals that seek to increase the capacity of spectrum for productive use Certainty for investors may be provided through policies that balance multiple competing interests not through ownership of exclusive-use licenses By providing new opportunities for competition changes in technology also might provide new opportunities for investment For example achieving economies of scale has been a driving force in the wireless industry for over a decade rationalizing consolidation of spectrum license holdings Micro networks which operate in small geographic areas may not require scale economies to be competitive If scale is no longer critical to success opportunities for small investors and nascent entrepreneurs may arise spurring new types of investment models 40 In such an environment scale may no longer be the consequence of technological and market forces but might be viewed as an artificial business model favoring monopolistic behavior It is possible to envision a wireless business environment where the value for investors derives primarily from ownership of micro networks and intellectual property rights for wireless devices and applications This shift would likely significantly change investment priorities redirecting research and development to products that operate on micro networks and to the continuous improvement in products and services The Arrival of Fifth Generation Networks Most announcements about future 5G network designs include some reference to small cell concepts albeit at a more advanced level of technology than what is in use today Recent descriptions of 5G emphasize important improvements in network speed and capacity and the introduction of new communications technologies Industry comments diverge on whether 5G will remain within the suite of cellular technologies—a further advance of LTE—or represent a new direction in network architecture Some describe 5G as not one standard but a combination of several standards and technology families or of new types of air interfaces 41 IEEE 802 11 ac 39 Oceus Networks uses a similar concept to provide communications on the move for the Department of Defense See http oceusnetworks com 40 The Small Cell Forum has published a report on the business case for small cell deployments http www scf io en documents 098_-_Urban_small_cells_in_the_real_world_case_studies php 41 Public discussions of 5G tend to be general in part because of the rapidly evolving state of the technology and its Congressional Research Service 13 Mobile Technology and Spectrum Policy Innovation and Competition standards for 5 GHz are seen by many as an important stepping stone in the development of 5G networks that will use both licensed and unlicensed spectrum Commercial deployments of Fifth-Generation technologies by 2020 have been announced by wireless network officials in South Korea42 and Japan 43 In July 2014 Ericsson a global leader in communications technology demonstrated the speed of its 5G network design to customers NTT DOCOMO Japan and SK Telecom South Korea 44 The year 2020 is the target introduction date for many companies and industry groups that have been established to advance the introduction of 5G These include IMT-2020 45 5G Forum 46 METIS 47 the 5G Information Centre 48 and 5G-PPP 49 Changing Spectrum Policy to Accommodate New Technology A key component of spectrum policy is the allocation of bands for specific uses and the assignment of frequencies within those bands The allocation and assignment of radio frequencies particularly as it relates to the five disruptive technologies noted in this report might today be described as operating in two distinct domains exclusive-use commercial spectrum licenses and unlicensed spectrum These two domains are presently dominated by two suites of standards   The cellular network track laid out by 3GPP where innovation occurs within the LTE envelope and relies primarily on spectrum licenses assigned for exclusive use and The unlicensed track using IEEE Wi-Fi standards for channels allocated for that purpose providing access and capacity to all comers The first track—a seamless network built using LTE technology—is supported by current spectrum policy which favors auctioning spectrum licenses for exclusive use Licenses are a bankable asset that provides some protection to investments in infrastructure as there is reasonable certainty that investors will hold the asset long enough to realize a return proprietary nature 42 “SK Telecom Starts Joint Research with Ericsson for 5G ” SK News press release July 7 2014 http www sk com Channel News view 1219 43 “DoCoMo to Conduct 5G Experiment Trials with World-Leading Mobile Technology Vendors ” NTT DOCOMO press release May 8 2014 The Japanese carrier reportedly is planning to introduce 5G service by 2020 offering 1 000 times the capacity of LTE https www nttdocomo co jp english info media_center pr 2014 0508_00 html 44 “Ericsson 5G Delivers 5Gbps Speeds ” Ericsson News Center July 1 2014 http www ericsson com news 1810070 45 In China 5G research and development is being sponsored by three ministries that jointly established IMT-2020 5G Promotion Group http www itu int dms_pub itu-r oth 0a 06 R0A0600005D0001PDFE pdf 46 Based at the University of Surrey in the United Kingdom http www surrey ac uk 5gic about 47 Mobile and wireless communications Enablers for the Twenty-twenty Information Society a European Union project https www metis2020 com 48 Based at the University of Surrey in the United Kingdom http www surrey ac uk 5gic about 49 The 5G Infrastructure Public-Private Partnership was initiated by the European Union to partner with private sector companies http 5g-ppp eu Congressional Research Service 14 Mobile Technology and Spectrum Policy Innovation and Competition The minimum effective bandwidth for assuring quality of service over a wide geographic area with LTE is 20 MHz many experts say Carrier aggregation a feature of LTE Advanced typically allows for operations on up to five 20-MHz bands or 100 MHz by as many as five carriers Contiguous spectrum of 100 MHz in bands designated for LTE is therefore considered valuable to LTE carriers 50 To get the full benefit of LTE Advanced coverage macro network operators also seek licenses with large geographic areas thereby committing to ever-greater capital investments The second track builds on unlicensed spectrum for Wi-Fi and related standards that are expanding to meet the needs of different industries as their technologies evolve Access to unlicensed spectrum is an important resource for many industries—manufacturing utilities agriculture and others—not generally considered part of the telecommunications industry Unlicensed spectrum benefits from attributes of small cells such as their ability to operate on multiple frequencies spectrum agnostic or to support shared use Under the current regulatory regime the FCC often chooses to differentiate between macro and micro networks only in terms of licensed and unlicensed spectrum therefore arguably not fully realizing or supporting the growth potential of micro networks on licensed spectrum It appears however that market demand for low-cost easy access to spectrum will grow as spectrumdependent industries outside the telecommunications sector continue to expand Some economists project that some of these industries are on the threshold of exponential growth 51 Although unlicensed technologies may be more suitable for their spectrum needs these new industries often must choose between less suitable and often-costly LTE network solutions or spectrum access under unlicensed regulations that do not provide certainty and may discourage investment To meet the needs of these emerging markets and accommodate new entrants the FCC might modify its spectrum policies in particular its rulemaking procedures for spectrum license auctions a key policy tool Spectrum Auctions Auctions a fairly recent innovation in frequency assignment are regarded as a market-based mechanism for allocating spectrum Other market-driven policies include licensing fees based on fair-market valuations of spectrum and flexibility in spectrum usage within assigned bandwidths Today spectrum licenses for commercial applications are typically auctioned to the highest bidder One ongoing spectrum policy debate centers on how to create a framework for greater competition through widespread ownership of spectrum licenses One policy tool is the rulemaking process for participation in spectrum auctions Provisions in existing law require the FCC to provide opportunities for small businesses to compete in auctions which is accomplished largely by policies for Designated Entities DE 52 To For a more detailed explanation of carrier aggregation see 3GPP “Carrier Aggregation Explained” at http www 3gpp org technologies keywords-acronyms 101-carrier-aggregation-explained 51 A discussion of exponential growth as disruptive technologies mature is presented in Erik Byrnjolfsson and Andrew McAfee The Second Machine Age Work Progress and Prosperity in a Time of Brilliant Technologies W W Norton and Company Ltd January 20 2014 52 Qualifying designated entities bidding for licenses in a spectrum auction receive a credit against the purchase price of a successful bid Current FCC rules provide for three categories of DE based on gross revenue small business very small business and entrepreneur Small business and entrepreneur bidders receive a credit of 15% very small 50 Congressional Research Service 15 Mobile Technology and Spectrum Policy Innovation and Competition accommodate economies of scale for macro networks the FCC has generally been increasing the size of geographic coverage of licenses To assure the licensed spectrum is put to full use the FCC applies build-out deadlines for network infrastructure and other requirements The FCC’s decisions about geographical coverage for licenses are believed by some to influence the number of potential bidders In designing band plans for spectrum to be auctioned the FCC chooses the geographic coverage of licenses Although there are a number of geographic configurations for licenses the two most frequently used are designated as Economic Areas EAs and Cellular Market Areas CMAs 53 CMA coverage is based largely on Metropolitan Statistical Areas or Rural Service Areas The Economic Area license size tends to favor business planning for larger communications networks seeking maximum geographic coverage Because of economies of scale their Return on Investment for spectrum license purchases is presumed to be better than the return for a local wireless service provider that may not be able to take full advantage of a geographic coverage that extends beyond its market area Not surprisingly larger carriers can and often do outbid smaller companies in acquiring licenses 54 To counterbalance what some consider to be an unfair advantage in bidding competitions the FCC in the past has employed spectrum caps limiting the amount of spectrum any one carrier may acquire at auction Examples of the role of auctions in allocating and assigning spectrum access and rights can be found in two current FCC rulemaking proceedings One is for the Broadcast Incentive Auction which includes decisions on allocation of spectrum between licensed and unlicensed use and assignment through auctions Auction rules for the Broadcast Incentive Auction55 favor license sizes and build-out rules for macro networks The license coverage will be for Partial Economic Areas PEAs that create smaller license coverage areas within EAs but final rules may allow bidders to aggregate licenses The other FCC action concerns reallocation of federal spectrum holdings in the 3 5 GHz band The FCC proposes to designate 3 5 GHz as an “Innovation Band ” In part to encourage micro networks and their successor technologies the FCC proposes reducing the geographic coverage of a license to a single census tract It is considering criteria for designated entities that might focus less on company size or ownership and more on programs for innovation or research and development Reallocation and Assignment Broadcast Incentive Auction The Spectrum Act has permitted the FCC to conduct incentive auctions that is to establish a mechanism whereby spectrum capacity may be relinquished for auction by some license-holders who would then share in the proceeds 56 Many commercial wireless licenses can be resold directly by their license-holders for comparable uses the purpose of incentive auctions is to reward license-holders such as television broadcasters who repurpose their spectrum for a different use Although incentive auctions might be used for other types of license-holders the act specifically addresses spectrum assignments for over-the-air television broadcasters businesses 25% 47 C F R 27 1218 53 The FCC has been assigning area-based licenses since 1982 A description of the geographic coverage for each type of license is published by the FCC’s Office of Engineering and Technology “FCC Areas ” at http transition fcc gov oet info maps areas 54 In an auction of EA licenses for frequencies in what is known as the H Block Auction 96 completed February 27 2014 Dish Network outbid the competition to acquire all 176 licenses on offer 55 “FCC Adopts Rules for First Ever Incentive Auction ” FCC Report and Order Docket No 12-268 released June 2 2014 http www fcc gov document fcc-adopts-rules-first-ever-incentive-auction-0 56 P L 112-96 §6402 126 STAT 224 Congressional Research Service 16 Mobile Technology and Spectrum Policy Innovation and Competition The act established procedures and guidelines for the FCC to follow in reallocating television broadcasting spectrum licenses for commercial auction Through a reverse auction process the broadcasters would establish the amount of compensation they are willing to accept for the spectrum they voluntarily release for auction Additionally broadcasters that do not voluntarily relinquish spectrum rights but are required to relocate or incur certain other costs may be compensated Spectrum voluntarily released by TV broadcasters is to be repurposed for commercial broadband communications with licenses sold through what the law refers to as a “forward auction ” At least one successful reverse auction is required to set minimum prices for a forward auction The outcome of the forward auction for spectrum licenses depends on the results of the reverse auction For the results of a forward auction to be valid auction proceeds must at a minimum cover 1 payments to broadcasters that relinquished spectrum for auction 2 the costs to the FCC of conducting the auctions and 3 the estimated costs for relocation of other broadcasters which are not to exceed $1 750 million deposited in a TV Broadcaster Relocation Fund for relocation costs Auction revenue amounts above these three financial obligations are to be deposited in a Public Safety Trust Fund created by the Spectrum Act to receive and disburse proceeds of the spectrum license auctions required by the act The Public Safety Trust Fund is scheduled to receive approximately $1 5 billion from Auction 96 which was completed on February 27 2014 57 Additional revenue will come from another auction of spectrum licenses Auction 97 required by the act scheduled for November 2014 58 The proposed reserve price minimum acceptable bid value is $10 6 billion of which $5 1 billion is to be applied to the costs of relocation or sharing of frequencies now used by the federal government Mandated disbursements from the Public Safety Trust Fund include $7 135 billion for the development of a nationwide public safety broadband network which has priority as a recipient and $20 4 billion for deficit reduction 59 Participation and License Coverage Increasing the availability of commercial broadband is the stated goal of both the Broadcast Incentive Auction and the FCC Although the act does not specify that spectrum licenses be sold to allow for the build-out of LTE networks LTE is the primary standard for broadband on cellular networks Furthermore the broadcasting frequencies that are targeted by the FCC for auction are in the 600 MHz band a band designated for LTE and adjacent to the 700 MHz band where LTE network build-outs have begun The FCC has designed rules for the Broadcast Incentive Auction60 intended to improve competition among current and potential LTE network providers The licenses will be for 5MHz of paired spectrum to maximize the amount of licenses available without creating problems of interference with television broadcasts by cellular network transmissions License coverage will “Winning Bidder Announced for Auction 96 ” FCC Public Notice DA 14-279 February 28 2014 http transition fcc gov Daily_Releases Daily_Business 2014 db0228 DA-14-279A1 pdf 58 FCC Auction of Advanced Wireless Services Licenses Scheduled for November 13 2014 Comment Sought on Competitive Bidding Procedures for Auction 98 Docket No 14-78 May 19 2014 http transition fcc gov Daily_Releases Daily_Business 2014 db0520 DA-14-669A1 pdf 59 Disbursements from the Public Safety Trust Funds are detailed in CRS Report R42543 The First Responder Network FirstNet and Next-Generation Communications for Public Safety Issues for Congress by Linda K Moore 60 FCC Docket GN 12-268 the FCC provides information on the auction preparations at http wireless fcc gov incentiveauctions learn-program 57 Congressional Research Service 17 Mobile Technology and Spectrum Policy Innovation and Competition be for Partial Economic Areas 61 although the auction rules might allow for aggregation creating even larger licensed coverage The FCC will require interoperability for devices across all networks built in the 600 MHz band this will likely benefit smaller carriers as well as improve the efficiency of spectrum access Qualifications for Designated Entities will be reconsidered in a separate proceeding that may subsequently be applied to the Broadcast Incentive Auction A separate Report and Order will establish new guidelines on the amount of spectrum that any one carrier may hold 62 This evaluation which imposes limits on ownership to avoid market concentration often referred to as a spectrum screen is presently made on a case-by-case basis for merger activity The FCC plans to apply its new criteria to the incentive auction by placing restrictions on bidding activity intended to handicap the ability of Verizon and AT T to acquire licenses in certain areas The majority of the 700 MHz band commercial licenses were purchased at auction in 2008 Auction 73 by Verizon and AT T 63 which together also hold approximately 70% of commercial spectrum licenses below 1000 MHz 64 The other two national carriers Sprint majority-controlled by SoftBank Corp a Japanese telecommunications provider and T-Mobile Inc majority-owned by Deutsche Telekom AG own 15% of commercial licenses below 1000 MHz and did not participate in Auction 73 Although Sprint and T-Mobile are generally viewed as the primary beneficiaries of the bidding rules the rules are also intended to provide opportunities for smaller carriers to bid successfully Based on the amount of spectrum released by the broadcasters a block of spectrum will be set aside in each market with bidding priority for Sprint T-Mobile and any entrant deemed not to have national network coverage If for example 60 MHz of spectrum is made available by broadcasters 20 MHz will be reserved as described by the staff report all registered bidders would be eligible to compete for licenses not acquired in priority bidding as well as in the remaining 40 MHz The announced rules are consistent with past FCC auction practices over time Testimony by FCC Chairman Tom Wheeler affirmed the FCC’s assumption that economies of scale skew competition for spectrum licenses 65 Given the predicted decline for investment in macro networks the success of the auction would appear to depend on attracting new entrants including entrepreneurs that are looking to serve new markets for wireless services It is possible however that the technical rules developed for LTE networks in the 700 MHz band to be applied to the 600 MHz band may limit entrepreneurial innovation or at least constrain it within the LTE envelope The auction rules appear to be giving priority to the policy goal of increasing competition among macro network transport providers where economies of scale prevail The FCC has determined “Wireless Telecommunications Bureau Seeks Comment on a Proposal to License The 600 MHz Band Using “Partial Economic Areas ” DA 13-2351 December 11 2013 and “WTB Provides Details about Partial Economic Areas ” Docket No 12-268 released June 2 2014 http www fcc gov document wtb-provides-details-about-partial-economicareas 62 “FCC Adopts Revised FCC Mobile Spectrum Holdings Policies “ FCC News May 15 2014 http www fcc gov document fcc-adopts-revised-mobile-spectrum-holdings-policies and Report and Order Docket No 12-269 released June 2 20014 http www fcc gov document mobile-spectrum-holdings-report-and-order 63 The major auction of licenses for the 700 MHz band was Auction 73 Some information about the top ten successful bidders in Auction 73 is available at Wireless Strategy FCC Auctions http www wirelessstrategy com 700auction html 64 “Fact Sheet FCC Mobile Spectrum Holdings ” May 2014 FCC staff report http www fcc gov document fact-sheetfcc-mobile-spectrum-holdings-rules 65 U S House of Representatives Subcommittee on Communications and Technology Committee on Energy and Commerce Hearing “Oversight of the Federal Communications Commission ” May 20 2014 written Testimony of Tom Wheeler Chairman Federal Communications Commission 61 Congressional Research Service 18 Mobile Technology and Spectrum Policy Innovation and Competition that “low-band” spectrum is uniquely desirable for network coverage because it is “better suited for transmitting wireless communications over long distances and through walls ”66 With the new Mobile Spectrum Holdings Policies the FCC seems to have drawn a line at 1000 MHz below which it will encourage the build-out of LTE networks and attempt to maximize the number of exclusive-use spectrum license owners to provide network coverage Allowances are also made to increase unlicensed use as part of the Broadcast Incentive Auction These decisions reaffirm the two-track spectrum policy that has been in place for decades Reallocation and Assignment 3 5 GHz In its Further Notice of Proposed Rulemaking FNPRM that would repurpose spectrum at 3 5 GHz 67 the FCC has pointed the way toward a third track of spectrum policy The FNPRM proposes a framework for spectrum management that is considered by many to be a precursor to the development of spectrum policies more aligned with evolving wireless technologies The proposed rules address important issues for the development of small cells and sharing technologies such as license coverage license assignment interoperability competition from new entrants and rules for the management of shared access Many of the proposed rules are in outline form with requests for comments specifically asking for industry guidance Participation and Coverage The FNPRM proposes establishing three tiers of spectrum access in the 3550-3650 MHz band taking advantage of advances in small cell and shared-spectrum technologies Under the proposal there would be a top tier of Incumbent Access for current users such as the Department of Defense for radar systems and Fixed Satellite Service A second tier would use a Spectrum Access System to allot spectrum among pre-qualified users who will be assigned Priority Access PA The third tier would be available nationwide for General Authorized Access GAA Although not designated as unlicensed the GAA layer would serve a comparable purpose The proposal would allocate at least half of the available spectrum after allowing for Incumbent Access for GAA GAA would be open to all comers with rules established by the FCC However up to 20 MHz of the GAA may be reserved for hospitals public safety organizations local governments or similar—designated as Contained Access Users—for indoor use within their premises The FCC refers to tiers two and three as Citizens Broadband Radio Service The boundaries of the three tiers would shift depending on usage managed in general through Spectrum Access Systems SASs that would use dynamic spectrum management technology to manage sharing throughout the band The FCC assumes that multiple SASs would be in operation on a nationwide basis throughout the band It proposes that SASs be allowed to collect “reasonable” fees from PA and GAA users The proposed rulemaking would create Priority Access Licenses PALs with an initial authorization for one year for a 10 MHz assignment of a single census tract A PAL license might be assigned directly by the FCC or won through competitive bidding Longer license periods and license aggregation are being considered Large players might either at auctions or over time be able to assemble licenses covering areas up to 30 MHz The FCC might also in auctioning spectrum licenses provide a mix of license sizes The expectation is that the availability of small cell area licenses will spur competition and innovation The FCC is seeking comment as to whether to offer bidding credits to further encourage participation by small businesses Still the 66 67 Ibid p 2 FCC Further Notice of Proposed Rulemaking GN Docket No 12-354 released April 23 2014 Congressional Research Service 19 Mobile Technology and Spectrum Policy Innovation and Competition barrier to entry posed by legal costs may remain high for small businesses unless the FCC can further simplify both the requirements for participating in auctions and the certification of devices for license-by-rule allocations Economies of scale in device manufacturing are to be met by requiring interoperability of all devices for PA and GAA users across the full 100 MHz being reallocated at 3 5 GHz requirements may be extended to an additional 50 MHz at 3650-3700 MHz that may be added later The presumed technologies are LTE-Unlicensed and new and current forms of Wi-Fi As the FCC notes in the FNPRM the effectiveness of its proposals for 3 5 GHz is largely dependent on “the development and implementation of a robust SAS ” Their approach therefore is to propose several high-level requirements with the expectation that industry participants will develop the technical implementation and any needed standards The proposed rulemaking fulfills expectations as an innovation band in that it provides the opportunity to see how effectively small cell and shared technologies can increase spectrum capacity The proposed coverage areas for PA and GAA users are limited however and may not be sufficient to spur competition for PALs as the economic benefits may be elusive At present Incumbent Access users have pre-emptive rights to airwaves on both coasts of the United States significantly diminishing the amount of spectrum available for licensing In establishing the band plan the FCC adhered to exclusion zones originally established in 2010 by the NTIA These zones were based on assumptions for the deployment of high-site macro networks using WiMax standards68 as the main criteria for evaluating interference Many argue that these criteria are meaningless in a small cell environment Some expect that once the threetier designations are in place and the Spectrum Access Systems operating the exclusion zones will gradually disappear In the short term however there is concern that the desired competition and influx of new players for PA licenses may not materialize Whatever the perceived shortcomings of the yet-to-be-decided final rules lessons learned from the Innovation Band can be used to develop a road map from present to future policies and practices Evolution of Spectrum Policy Spectrum policy notably as interpreted by the regulations and action of the FCC and the NTIA can accelerate or delay the arrival of the network of the future The key factors identified in this report as influencing policy decisions appear to be changing with the technology and may lead to policy changes 69 Access to Radio Frequency Spectrum The demand for access to spectrum is projected to continue to increase dramatically The need for spectrum licenses for exclusive use to meet this demand is however being challenged by new technology that enables sharing One policy proposal for sharing would permit the auction of licenses for the right to share federal spectrum In the United States this approach is usually 68 WiMax was an early standard for 4G that has largely been displaced by LTE A report from the Organization for Economic Co-operation and Development covers many of the issues discussed in this section It provides information on shared spectrum regulation standards and harmonization from a global perspective OECD 2014 “New Approaches to Spectrum Management ” OECD Digital Economy Papers No 235 OECD Publishing http www oecd-ilibrary org science-and-technology new-approaches-to-spectrummanagement_5jz44fnq066c-en 69 Congressional Research Service 20 Mobile Technology and Spectrum Policy Innovation and Competition referred to as Licensed Shared Access LSA Using dynamic spectrum access to monitor and control spectrum availability access to cellular networks would be available either to the federal incumbent or the licensed network operator Transitional technologies such as those being developed for 3 5 GHz are making possible other forms of sharing and the creation of new categories of licenses The question of spectrum to support 5G technologies has barely been addressed in public forums Spectrum at 15GHz will likely be used for the 5G network scheduled for deployment in Japan in 2020 5G introductions based on LTE standards in the United States might use existing spectrum holdings where investments have been made in LTE HetNet infrastructure Economies of Scale The shift to micro networks would appear to reverse the need for large investments in infrastructure and spectrum licenses as a requisite for market participation New forms of economies of scale might be achieved not by a few investing a great deal but by many investing comparatively small sums If investment requirements as a barrier to entry are reduced opportunities for new participants and competitors are likely to increase Other barriers include lack of certainty about the availability and unit cost of spectrum access and the costs of regulatory compliance The importance of economies of scale in the manufacture of devices already important is likely to increase as devices become the drivers of the network Interoperability across multiple bandwidths promotes scale for device manufacturers Standardization Substantial resources have been invested in developing a mobile Internet that can link cellular architecture to IP-enabled networks using LTE LTE Advanced technology and standards New standards are also emerging for Wi-Fi Wide Area Network Cloud technologies and 5G The trend may be shifting away from cellular network technology although the transition is likely be gradual given the large investment in LTE network infrastructure Based on cellular technologies LTE provides continuity with carriers’ legacy systems Because LTE is IP-enabled it supports high speed broadband and can connect with most systems that operate with IP protocols The evolution of LTE standards is considered by many notably policy makers within the European Union as providing the path to future innovation In this view innovation occurs within the planned predictable evolution of LTE policies for planned growth are predicated on LTE standards for the Internet of Things autonomous vehicles robotic sensors and other emerging or yet-to-be invented technologies that require access to spectrum Standardization in a planned environment may discourage the introduction of disruptive technologies and may encourage industry cartels Domestic and international forums that set standards for mobile broadband may need to give greater consideration to the interdependence of standards This would include not only the LTE and IEEE standards used in HetNets but other standards that may be crucial to expanding coverage and capacity This would include standards for Unmanned Aerial Systems terrestrial links and for the emerging technologies that provide for a mix of spectrum usage within a single network such as that being tested for 3 5GHz Congressional Research Service 21 Mobile Technology and Spectrum Policy Innovation and Competition Harmonization Efforts to harmonize spectrum allocations on an international basis have and will likely continue to require reallocation of spectrum to commercial broadband providing opportunities to further expand LTE networks However the diplomacy of harmonization may shift away from allocating or reallocating spectrum for LTE broadband toward placing more emphasis on harmonizing other standards including 5G Coordination of unlicensed spectrum and certification of devices for international use may become more important to international forums in the future Investment spectrum access and standardization interact with each other and may influence both national and global business decisions As markets become increasingly global access to spectrum on a worldwide basis may be one of the entry barriers for some American companies Therefore international negotiations regarding spectrum use are likely to play an important part in implementing wireless policies Internet Infrastructure Changes in spectrum policies especially as regards auctions may improve access to spectrum for a broad variety of players However if wireless access is an important input for a growing number of industries access to fixed communications infrastructure notably the Internet is crucial for mobile communications Micro networks achieve capacity through a proliferation of small cells each connecting to the Internet Less space between antennas means that more connections to Internet infrastructure are required Developing the Small Cell Network Within less than a decade wireless communications has advanced from Third Generation 3G to Fourth 4G and is poised to start the transition to the Fifth 5G Although some industry experts foresee a continued build-out of LTE-enabled towers using small cells to supplement coverage other experts foresee the evolution of interconnected but separate networks that rely primarily on small cells and emerging new technologies Some view 5G as a continuation of the evolution of LTE macro networks others envision 5G as a potentially disruptive micro network technology that may break entirely with its cellular origins These alternative scenarios likely lead to different outcomes depending in part on spectrum assignment policies Policies that favor 5G LTE cellular networks might imply support for the more efficient use of capital investment in existing infrastructure Policies that favor 5G IEEE non-cellular solutions might be deemed to be more oriented toward innovation and new entrants A key goal of spectrum policy is to manage a resource to achieve the maximum benefit to society for example by creating jobs opportunities for investment and growth and new forms of communications available to all Current policies of spectrum license assignment rely heavily on auctions where competition to acquire licenses is judged to spur competition within the telecommunications industry and maximize revenue to the U S Treasury 70 These rules largely favor telecommunications companies with major investments in macro networks 70 47 U S C §308 j 8 requires that net proceeds from competitive bidding for spectrum licenses be deposited in the U S Treasury Net proceeds are the auction revenues minus the FCC’s expenses In addition to the Spectrum Act Congress has twice in the past amended the provision in order to use auction proceeds for other purposes by creating special funds to hold and disburse auction proceeds The Commercial Spectrum Enhancement Act Title II of P L 108494 created the Spectrum Relocation Fund the Deficit Reduction Act of 2005 created the Public Safety and Digital Television Transition Fund Congressional Research Service 22 Mobile Technology and Spectrum Policy Innovation and Competition Another policy goal is emerging to assure spectrum access as a reliable low cost input for dozens of industries that are not part of the telecommunications sector This need appears to be critical for broad-based economic growth across many sectors of the economy As described in this report efforts to accelerate LTE LTE Advanced have shown the advantages of using micro networks in addition to macro networks Many technologists as discussed throughout this report have reasoned that the miniaturization and compression of network components potentially places more control of communications access in the hands of users devices and is less reliant on macro networks using exclusive-use spectrum In a policy environment that provides certainty about spectrum availability and access financial markets may increase investment in micro networks and the many technologies that benefit from their presence These include the disruptive technologies identified in this report autonomous vehicles advanced robotics cloud computing and machine-to-machine communications Other sectors and industries that benefit from reliable access to spectrum but may not benefit from using LTE networks include medicine education agriculture retailing utilities and manufacturing A third emerging spectrum policy track provides a bridge between the exclusive use everybody uses dichotomy that currently predominates Efforts to commence the transition to a new spectrum regime are evident in the proposed FCC rules for the 3 5 GHz band They are counterbalanced by the FCC’s rulemaking for the Broadcast Incentive Auction As described above this rulemaking is focused on rules to accommodate macro networks Both proceedings address issues of competition for access to spectrum primarily through regulation rather than by leveraging the opportunities provided by technology Neither of the proceedings fully accounts for the importance of Internet access nor acknowledges the imminent transition to 5G In the mobile world Internet access and spectrum access are equally essential Whereas some of the engineering solutions that will enable the sharing of 3 5 GHz spectrum have yet to be perfected the technologies for small cell networks are in current use The potential exists therefore to increase competition and innovation with policies that recognize small cell networks as a separate and distinct sector of the telecommunications industry If 3 5 GHz deployments meet expectations and show a clear path forward through an evolution of small cell and spectrum sharing technologies the United States may in the future have a surplus of exclusive-use licenses that are not being fully utilized on a competitive basis The potential for small cell and spectrum-sharing technologies to increase competition and provide new opportunities for new entrants and innovation might merit fuller consideration than what is offered through the creation of an Innovation Band Some argue that auction rules that provide small cell area licenses and recognize different build-out and usage requirements for small cell networks would meet goals for maximum benefit and auction revenue They are asking for a new spectrum management regime that will open access to more types of investments across a broader range of industries 71 Since evolving 5G architectures are predicted to be heavy users of small area networks new spectrum policies for small cells may also smooth the path to 5G Auctioning licenses for small cell networks might advance the third policy track and move to an environment that no longer focuses on the spectrum needs of the traditional telecommunications industry The area coverage for these licenses should most concur allow for flexibility Since the technology can support a network that provides service to for example a sports arena then a license with the geographic area of a sports arena should be available they say 71 For example see remarks made by a panel of experts in a forum organized by New America Foundation “Implementing the PCAST Spectrum Sharing Report A Citizens Broadband Service and Beyond ” April 4 2014 Congressional Research Service 23 Mobile Technology and Spectrum Policy Innovation and Competition Some of the same challenges for assuring access and encouraging competition that face policy makers for spectrum also apply to the Internet Policies to encourage consumer-driven networks may address these issues at least in part by creating new markets that will likely attract new infrastructure providers Policy Considerations for Congress Policy challenges created by the rapid evolution of wireless technologies that Congress may decide to consider include the following       Developing spectrum policy goals beyond meeting immediate needs for mobile broadband Identifying transitional opportunities for spectrum assignment and allocations Improving the application process and reducing the cost of obtaining certification for unlicensed devices Removing regulatory barriers to the development of flexible infrastructure Aligning spectrum access policies with policies governing Internet access Permitting technology to evolve while also balancing regulatory needs to achieve desired policy goals Congress may also choose to consider whether the two agencies responsible for spectrum policy—the FCC and the NTIA—are capable of fully meeting their responsibilities Do they have the right resources to do their jobs Are they sufficiently accountable for the consequences of their decisions Are they adequately balancing traditional telecommunications technology with emerging and evolving technology Congressional Research Service 24 Mobile Technology and Spectrum Policy Innovation and Competition Appendix Spectrum-Dependent Technologies This report bases its references to disruptive technologies on a May 2013 study by McKinsey Company 72 The report identified a dozen “disruptive technologies” and their industries The definitions and categorization of these technologies as provided by McKinsey serve in this report as a baseline for understanding spectrum-dependent technologies and their role in the U S and global economies Mobile Internet Advances in wireless communications technology have fostered a large and growing market for mobile broadband services also referred to as the mobile Internet 73 The mobile Internet is defined by the McKinsey report as a combination of mobile computing devices high-speed wireless connectivity and applications Wireless devices support voice text and video communications providing information and entertainment An increasing amount of mobile communications is through social media exchanging information among virtual communities Mobile Internet devices and networks are enhanced by the use of the Internet Protocol for interoperable connectivity and applications development The impact of the Internet on retailing banking and payments education health services and other public and social services is well advanced and projected by the McKinsey report to increase and expand The development of software applications apps for the mobile Internet may be a separate disruptive technology Increasingly as this report discusses licensed spectrum for the mobile Internet is used for LTE cellular technology on networks owned and operated by wireless carriers These networks cater primarily to markets for the mobile Internet but are currently expanding their customer bases in the Internet of Things near-autonomous vehicles and cloud technology Cloud Technology Cloud technology as described by the McKinsey report allows the delivery of potentially all computer applications and services through networks or the Internet Many commonly used Internet services are delivered using cloud resources such as online searches and streaming media The cloud and the mobile Internet contribute to each other’s growth and cloud technology is an enabler for the Internet of Things and other wireless innovations One of the advantages of the cloud model is elasticity With cloud technology notes the McKinsey report capital-intensive investments for infrastructure can be turned into “asset light” operating costs because for example peak demand loads can be distributed throughout the cloud The ability to shift demand easily throughout cloud resources provides another advantage greater reliability These benefits contribute to cloud technology’s potential to disrupt existing business models The development of cloud technologies might be the source for new services and applications for mobile users Decreased reliance on fixed infrastructure for data processing and storage might also include less dependence on fixed network infrastructure such as the base stations that serve cellular towers 72 McKinsey Global Institute Disruptive Technologies Advances that will transform life business and the global economy May 2013 available at http www mckinsey com insights business_technology disruptive_technologies Note that projections are for global growth and may not accurately represent a technology’s role in the U S economy 73 See for example “Remarks of Ruth Milkman Chief Wireless Telecommunications Bureau FCC ” prepared for delivery at Georgetown Center for Business and Public Policy and PCCA Workshop June 14 2013 Congressional Research Service 25 Mobile Technology and Spectrum Policy Innovation and Competition Internet of Things The Internet of Things also known as machine-to machine communications is defined in the McKinsey report as the use of sensors actuators and data communications technology built into physical objects enabling the objects to be tracked coordinated or controlled across a data network or the Internet The three main components for the Internet of Things are the sensors and actuators that detect and communicate information programming and analytical software and data communications links Wireless sensors including Radio Frequency Identification RFID chips usually operate on designated unlicensed spectrum Wireless connections might be by cellular networks or microwave using licensed frequencies or over unlicensed frequencies The McKinsey report includes Intelligent Transportation Systems ITS as part of the Internet of Things ITS relies heavily on sensors for vehicle-to-vehicle and vehicle-to-infrastructure communications It uses spectrum assigned to the Department of Transportation DOT for ITS and other programs in DOT’s Research and Innovative Technology Administration RITA The ITS program currently focuses on development of the connected car 74 Applications for trucks and automobiles are oriented toward traffic safety using vehicle-to-vehicle and vehicle-toinfrastructure short-range communications systems Autonomous and Near-Autonomous Vehicles An autonomous vehicle is defined by the McKinsey report as a vehicle that can move with little or no human intervention Some autonomous applications are already familiar such as autopilot in airplanes and self-parking cars Key technologies for autonomous vehicles are machine vision systems artificial intelligence and sensors The signals from machine vision and sensors are integrated through artificial intelligence to provide directions to vehicles Similar applications are used to guide robots The images captured through machine vision can be sent over wireless communications technologies such as gigabit Ethernet For autonomous guidance systems Ethernet operates on unlicensed Wi-Fi frequencies or on higher frequencies for fixed point-topoint connections Unmanned Aerial Vehicles UAV or drones are categorized by the McKinsey report as an autonomous or near-autonomous vehicle UAVs are supported by Unmanned Aerial Systems UAS a complete system of communications and guidance technologies using terrestrial networks and satellites and their radio frequencies UAS technology is also or can be applied to maritime and terrestrial vehicles Commercial UAS in the United States where allowed currently operates over spectrum assigned to the Department of Defense and some frequencies assigned for amateur radio operators 75 Trains are another example of an autonomous or near-autonomous vehicle They use guidance systems such as Positive Train Control PTC which is designed to use dedicated spectrum to communicate information and guidance to trains 74 The Federal Highway Administration and other agencies within DOT are preparing for technology concept pilots The Connected Vehicle Pilot Deployment Program will test innovations in connected vehicle and mobile device technologies with one or more pilots in 2015 https www federalregister gov articles 2014 03 12 2014-05414 connected-vehicle-pilot-deployment-program-request-for-information 75 As required by Congress the FAA has taken steps to accommodate the development of commercial UAS operations in the United States For example it has created a road map to plan for and document future UAS uses Six sites have been chosen to test the possibility of allowing commercial drones and aircraft to share airspace http www faa gov about initiatives uas Congressional Research Service 26 Mobile Technology and Spectrum Policy Innovation and Competition Advanced Robotics According to the McKinsey report robots excel at tasks that require superhuman speed strength stamina or precision in a controlled environment Advanced robots have greater mobility dexterity flexibility and adaptability They may have features such as high-definition machine vision and advanced image recognition and can learn from and interact with humans Robots can improve efficiency and safety in a variety of tasks as varied as sorting produce performing highprecision minimally invasive surgical procedures or transporting heavy objects A robot may be stationary operated on a tether or track or mobile Communications requirements vary from environment to environment A mobile robot operating in open spaces for example has different communications and spectrum needs than one controlled within an indoor space Mobile robots operating with wireless sensors and communications connections have the potential to perform dangerous tasks that potentially jeopardize human life or health including military combat Some advanced robotic systems incorporate existing wireless technologies that have spectrum allocations on unlicensed frequencies used for Wi-Fi or RFID or over infrared electromagnetic spectrum Policy Considerations Some of the barriers to deploying new technologies are described in detail in the McKinsey report Briefly some of the main policy concerns—in addition to spectrum access—deal with       Privacy Data security Education and training Shifts in labor markets Interaction of state and federal laws and regulations Research and development These topics are outside the scope of this report but may need to be addressed in order to provide a hospitable environment for innovation in mobile technology Author Information Patricia Moloney Figliola Specialist in Internet and Telecommunications Policy Acknowledgments This report was originally written by Linda K Moore Congressional Research Service 27 Mobile Technology and Spectrum Policy Innovation and Competition Disclaimer This document was prepared by the Congressional Research Service CRS CRS serves as nonpartisan shared staff to congressional committees and Members of Congress It operates solely at the behest of and under the direction of Congress Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role CRS Reports as a work of the United States Government are not subject to copyright protection in the United States Any CRS Report may be reproduced and distributed in its entirety without permission from CRS However as a CRS Report may include copyrighted images or material from a third party you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material Congressional Research Service R43595 · VERSION 8 · UPDATED 28