I’m increasingly concerned that if we don’t act now, in a few short years our smartphones, which we rely on for so many things, from texting and emailing to sophisticated applications in the areas of health and education, are going to “run out of gas”.

I’m talking about spectrum – the “gas” on which cellphones run.  As more and more people have turned to smartphones and tablet computers for the activities of daily life and for running their businesses, the wireless spectrum is becoming crowded, particularly in major cities.  Over time, if nothing is done, this will lead to less reliable service – exactly the opposite of what consumers want and businesses need.  Fortunately, there is a solution.  A bill now being considered in the House will authorize incentive auctions for additional amounts of wireless spectrum and require the FCC to open those auctions to all comers and not put unreasonable restrictions on the use of the spectrum, which will maximize the value of this unique national resource.  Congress should pass this bill quickly.

Reliable access to the wireless broadband Internet is a critical issue for the Hispanic community.  Our community is adopting this new technology at a fast rate, which helps prepare us for the jobs of the future.

And the potential is even greater.  A new report from the economists Robert Shapiro and Kevin Hassett notes that the past transition from second-generation to third-generation wireless systems generated almost 1.6 million jobs between 2007 and 2011, even as the economy as a whole lost jobs.  The current transition, to fourth-generation systems that truly exploit the transformative power of wireless broadband, is expected to generate over 230,000 jobs this year alone.  A similar study from the Deloitte consulting firm estimates job growth from 4G at over 771,000 in the next several years.

And that transition is just beginning.  The way to keep it moving forward is spectrum reform that gets more spectrum into the hands of network operators as soon as possible, so they may open it up to consumers and businesses.  We need policies that promote private investment in universal access to wireless broadband, so that our community is not left behind in the broadband future.

As posted on Huffington Post Latino Voices, by Janet Murguia – President of the National Council of La Raza and Chair of the Hispanic Association on Corporate Responsibility.

HACR focuses on employment, procurement, philanthropy and governance when evaluating companies, and, while there has been an overall decrease of Hispanics seen in the C-Suite of many corporations, AT&T has done the opposite by increasing the representation of Hispanics in its workforce, appointing Hispanics to some of its most senior ranks.

But, the company’s interest in the Hispanic community apparently doesn’t stop there. AT&T has been investing more and more in programmatic initiatives such as the Aspire Program, which focuses on dropout prevention and helps ensure student college preparedness, and has provided resources to help advance the education and economic stance of Hispanics by investing millions into various foundations and programs.

AT&T exemplifies a true understanding of the need for inclusion and diversity.  One of the biggest indications of AT&Ts stance on inclusion includes a recent decision to turn more than 700 retail stores to a bilingual format, thus enabling the company to better cater to the nation’s growing Hispanic market. They have made it a point to focus on diverse suppliers for the company’s procurement base, which encourages the growth of small minority businesses, and have launched comprehensive campaigns that provide full bilingual resources across every medium. In this case, actions certainly speak louder than words.

And with these actions, it is no wonder why AT&T received such a high HACR rating. The company is well ahead of its competitors when it comes to supporting corporate diversity, minority business, and understanding that, in order to keep America competitive and thriving, we must utilize and nurture the very segments that give it a cultural and linguistic edge.

And with the world standing at the helm of social and economic change, the need for more inclusion has never been greater. Clearly, AT&T gets it.

A few points from the article:

• With more people adopting wireless technology, the time until the real spectrum crunch decreases.
• With multifunctioning purposes, devices can use wireless for business, education, telemedicine, and entertainment.  However, limited airwaves affect the operating level and efficiency of all these functions.
• Policymakers must take better and faster action to add spectrum to the wireless industry.  Secondary market transactions are acceptable on a limited basis, but it is not enough.  Lawmakers need to authorize legislation which will solve the spectrum shortage.

Spectrum is also extremely important for Latinos going forward.  There are many applications for wireless broadband as the article mentioned, but Latinos are, according to the statistics, the largest group who own and use smartphones.  They are also very likely to use wireless as their primary access to the Internet, or their only access.  Wireless has revolutionized the digital marketplace, with apps becoming a $7 billion dollar industry, and it is expected to reach $50 billion in a few years.  It has also revolutionized the way people access the digital age, and has given millions of Latinos and previously unconnected people access to the Internet.  I wholeheartedly agree that policymakers must take a more aggressive leadership role in solving the looming spectrum crunch.  Too many things, like telemedicine, business growth, and reducing the digital divide, hang in the balance.

U.S. Wireless Ecosystem is Robustly Competitive

Competition drives the U.S. wireless industry. When one objectively looks at the major market indicators, competition is the reason why we lead the world in efficiency and value for consumers.  These indicators include capital expenditures and network investments; infrastructure deployments; subscribership levels; subscriber growth; number of devices manufactured for the U.S. market; growth of device capabilities; continued evolution of operating system choices; application development; consumer choice in calling or data plans and other service offerings; network coverage; pricing trends; and enhancement in services, service policies, customer care and transparency.

Earlier this month, we submitted comments to the Federal Communications Commission (FCC)  on the state of mobile wireless competition that uses data from CTIA and well-respected third party organizations that prove the U.S. wireless industry is competitive.

Thanks to the robust competition throughout the “virtuous cycle of innovation,” we highlighted a few key major market indicators that best demonstrate our industry’s growth.

• Capital expenditures and network investments—As of June 2011, U.S. wireless carriers have invested a commutative total of $322 billion to build-out and upgrade networks to compete effective on network quality.

• Subscriber growth—Competition drives consumption and demand for wireless services. In June 2011, there were 322 million active subscriber connections, an increase of approximately 22 million from June 2010.  The number of 3G and 4G subscribers continues to grow as carriers compete to offer advanced network technologies. By the end of 2010, there were more than 119 million unique 3G and 4G subscribers (an increase of 19 million from 2009).

• Number and variety of devices manufactured for the U.S. market—At least 32 different companies manufacture more than 630 unique devices for the U.S. wireless market. The incredible proliferation and adoption of smartphones and wireless-enabled tablets has made the average price of smartphones drop dramatically, down to the current average price of $135.

• Application development—Competition spurs the development of new application stores, new applications and open network initiatives. As of mid-year 2010, more than 240,000 apps were available on seven operating systems from seven different storefronts. Only one year later, there were 1.2 million apps available on at least 11 operating systems from more than 27 different non-carrier storefronts.

In order to maintain this kind of robust competition, we must solve the looming spectrum crisis. Unlike most policy debates in Washington, D.C., getting more spectrum for the wireless industry has bipartisan and bicameral support. In fact, the FCC predicts that by 2014, there will be a broadband spectrum deficit close to 300 MHz. If additional spectrum is made available to meet the demand, the FCC says significant economic value will be created. As we had said repeatedly, everyone benefits when spectrum is made available.

It’s competition, not regulation, that benefits consumers. It’s the constant competition and innovation from our members that provides customers with the diverse products and services.

As we say in the filing, we recognize the expanded scope that the FCC has taken with the report, but it doesn’t preclude a finding similar to countless other reports that the core market Congress has characterized as effectively competitive.

By all relevant indices, the core mobile market appears no less vibrant. There is every basis for the Sixteenth State of Mobile Wireless Competition Report to find effective competition in the U.S. wireless market.

A few points from the article:

• The article was highly critical of the National Broadband Plan of 2010, which seeks to achieve universal access and coverage by 2020.  The point of contention is that the FCC has not been bold enough in their targets or their minimum speeds of 100 Mbps and 50 Mbps.
• Additionally, the article contends that speeds offered in other countries are already faster and are offered at a competitive price point.
• The article also argues that major cable and telecomm companies are not investing in rapidly deploying new technology to the marketplace which would deliver must faster speeds.
• Similarly, the FCC, the industry’s top regulating body, has not been effective in regulating providers and providing consumers with competition and better quality service.  Additionally, the author asserts that the Obama Administration is far too cozy with large corporate providers.

While we all would love to see much faster download and upload speeds, the article’s points miss the reality that the market place in America is much different than in France, South Korea, Japan, and Hong Kong.  America is still plagued by low access, especially for minority, low income, and rural consumers.  The FCC deserves some credit in their renewed focus on achieving universal access and coverage with Universal Service Fund reform and a focus on implementing spectrum auctions.  While there is room for disagreement from a policy standpoint, it is unfair for accuse the FCC of ignoring issues facing America’s digital future.  Right now, the digital divide is arguably the most important issue facing America in the digital age, with clear implications involving national competiveness, innovation, and economics.

In addition, the article loses sight of the reality that there is a competitive marketplace, illustrated by many independent studies.  Other studies have shown that the US leads the world in wireless 3G and 4G deployments, which have significantly helped Latinos and other groups in the digital divide achieve access to the Internet.  At the same time, the article even disparages the Connect 2 Compete program, which myself and many others contend will help thousands of low income and minority households access affordable broadband.

Forbes take on Lightsquared vs Iowa farmers

By: Dan Piller

Forbes Magazine checks in today with a New York perspective on the battle between investor Phil Falcone and his proposal for an expanded wireless broadband through Lightsquared, which has aroused Midwest farmers, Deere & Co. and Iowa U.S. Senator Charles Grassley who worry about what they say the the harm a more crowded broadband would do the global positioning satellite systems and precision farming.

In an article entitled “Lightscrewed: How Washington Whipped Phil Falcone” Forbes makes it sound like Falcone has lost and Grassley and the farmers have won in the battle for the expanded broadband.

Last month Grassley put a hold on two nominees for the Federal Communications Commission and at the same time made known his displeasure at Lightsquared and the FCC over what Grassley said was the lack of information from both.

A statement by Grassley’s office Wednesday said “Sen. Grassley’s interest in this issue is much broader than LightSquared’s effects on John Deere or any other Iowa employer.  His interest is in whether the FCC is doing its job to vet major, multi-billion-dollar projects appropriately and transparently, without rushing forward in a semi-closed process on decisions with major implications for a big part of the economy and public safety, including the U.S. military.”

Falcone and Lightsquared want to expand the broadband to accommodate more capacity in rural areas.

But Forbes notes that Grassley “is simply looking out for one of his most important corporate constituents, they say, a firm with a keen interest in telecommunications policy: Deere & Co. Why does the manufacturer of John Deere tractors care about the FCC? Because many of the machines that roll out of Deere’s tractor factories in Waterloo, Iowa to plant and harvest fields across the world are equipped with high-precision Global Positioning System devicesto help farmers seed more accurately and conserve fuel.

Farmers use GPS to not only steer their tractors but through use of grid mapping of their fields to aid in planting and fertilizing.

Forbes recounts how the wireless broadband spectrum was built and how farmers and other users adapted to devices that sweep most of the band, built on the assumption that no other user such as Lightsquared would ever want to come onto the broadband.

Lightsquared’s campaign suffered a setback earlier this month when the Departments of Defense and Transportation issued their own analysis of the expanded band, saying “testing did show that LightSquared signals caused harmful interference to the majority of other tested general purpose GPS receivers.  Separate analysis by the Federal Aviation Administration also found interference with a flight safety system designed to warn pilots of approaching terrain.”

The Forbes article says “seated in the offices of his hedge fund, Harbinger ­Capital, 31 floors above Park Avenue in New York, Falcone recalls a lobbyist telling him what he was up against,” Forbes says. “’You’re not only fighting GPS,’ Falcone says, his shirt open to reveal a glim­mering pendant of Ganesh, the Indian god for overcoming ­difficulties. ‘You’re fighting GPS and the big boys.’”

Forbes reports that other telecom giants such as AT&T and Verizon have reason to be concerned about Lightsquared’s plans and concludes of Falcone’s prospects, “he’ll probably lose.”

The Minnesota-born, Harvard-educated Falcone has been a telecom investor. Forbes notes “Falcone’s reputation as a volatile hedge fund manager with a social-climbing wife hasn’t helped his case. (New York magazine accused Falcone and his wife, Lisa Maria, of doing everything “short of grabbing the sun and physically shining it upon themselves” to break into Manhattan society.)”

For more news about Iowa agriculture and energy click here for the Register’s Green Fields page on Facebook.

A few points from this article from Ars Technica:

• Since 2007, advocates from the broadband industry and opponents from the broadcast industry have fought a regulatory battle over white space transmissions.
• KTS, the company receiving the first approval from the FCC for their Agility Data Radio device, has described the product as being capable of accessing more spectrum and throughput than any other device.  It can achieve data rates of up to 4 Mbps.
• A second device is in the works, which is more rugged and versatile utilizing UHF and VHF bands with data rates of 0.5 and 3.1 Mbps.
• FCC Chairman Julius Genachowski was quoted as saying, “We are taking an important step towards enabling a new wave of wireless innovation.”

The new device will go a long way in providing more solutions to solving the major challenges of broadband access.  With a serious threat of spectrum shortage looming in the wireless broadband industry, devices which can utilize unused white spaces can be part of the solution.  While the technology is still very early in its development, it is a promising time for the broadband industry and the United States as it seeks to maximize access and data transmissions.

The next broadband battle: AT&T/Dish and Verizon/Cable

By Tim Farrar, Telecom, Media, and Finance Associates, Inc

The business model for standalone wholesale wireless network operators, such as LightSquared or what Clearwire hoped to be, is broken. But in the coming year, a new and ultimately more successful model is poised to emerge, one that will transform the entire communications landscape as we know it, and pit Verizon and cable TV on one side against AT&T and satellite TV on the other.

Back in September, I wrote an article for GigaOM pointing out that it was “increasingly difficult to see a sustainable place in the market for dedicated wholesale players like Clearwire and LightSquared.” Since then, Clearwire has threatened to default on its interest payments in order to secure further commitments from Sprint, and LightSquared is reportedly close to running out of cash. These guys don’t look like winners.

The new model

However, it appears that a new and much more sustainable model of wholesale access is now poised to emerge, solving the problem that LightSquared claimed to address — namely that rolling out multiple high capacity LTE networks on a national scale is simply unaffordable. Verizon’s purchase of SpectrumCo was the first indicator of this new model, with the cable companies being granted wholesale access to Verizon’s LTE network in four years time so they can offer their own wireless services.

Now, after the collapse of the proposed AT&T/T-Mobile merger, all eyes are focused onAT&T’s potential purchase of DISH Network, which could enable the buildout of an LTE Advanced network across 52MHz of spectrum. Such a deal would also have to address the way forward for T-Mobile, which admittedly does not have a clear route to LTE. Thus it seems very likely that T-Mobile would be granted wholesale access to this new 4G network to complement its 3G roaming agreement with AT&T.

Of course, while worries about monopolies will be ever-present, we can expect both Verizon and AT&T to commit to a very extensive and rapid LTE network buildout, bringing 4G wireless to 97 percent or 98 percet of the population in line with the objective set out by President Obama in his State of the Union address last February.

The role of government regulations in this new era

In this new environment, the FCC and DoJ will have to emphasize retail competition instead of the facilities-based competition that has been the focus of FCC policy ever since the 1996 Telecommunications Act. The only way to do that will be through making the initial wholesale commitments ventured by Verizon and (I assume) AT&T into a much broader framework for supplying wholesale LTE network access to other wireless providers. It’s therefore unsurprising that the DoJ is reportedly now mounting a probe into the Verizon-SpectrumCo acquisition. However, the FCC needs both the AT&T/DISH and Verizon/SpectrumCo deals to proceed in parallel, in order to impose a uniform set of rules on both companies. As a result, the FCC is likely to approve DISH’s waiver requests to permit terrestrial-only use of its recently acquired 40MHz of satellite spectrum in the very near future, perhaps even as soon as this Friday.

The ripple effects of such a transformational change to the telecom landscape are almost too numerous to mention. They range from what happens to DirecTV and Cablevision if they are left on their own once the other cable companies and DISH choose sides, to whether Sprint’s Network Vision plan can compete with second rate spectrum and limited scale against retail-focused providers with access to AT&T or Verizon’s far superior 4G network infrastructure.

However, even more important in the near term will be the reaction of Congress (which thinks it decides how the telecommunications landscape should be structured) in a polarized election year environment. Commitments on the part of AT&T and Verizon to large scale wireless deployment would in themselves be a clear win for President Obama, but imposing wholesale access commitments on the telecom industry will undoubtedly be viewed by many as akin to “European-style” socialism. Thus, the actions of the FCC and DoJ with respect to these deals could very well become a hot button issue in the November 2012 election.

Tim Farrar is President of Telecom, Media and Finance Associates, a consulting and research firm in Menlo Park, CA, which specializes in technical and financial analysis across the satellite and telecom sectors.

It has been well covered that Latinos, other minorities, low income households, the elderly, and rural residents are the most likely groups of people to fall into the digital divide.  The Pew Internet and American Life Project has collected and chronicled statistics regarding Internet usage and there are several dynamics which can be concluded from their research.  For instance, Latinos are still among the most likely groups to not have regular Internet access, and they are also among the most likely groups to own smartphones and subscribe to wireless service.  Therefore, it clearly shows that wireless continues to have a profound impact in bringing Latinos into the digital age.

This is where the Colorlines piece gets it wrong.  We all know the limitations of smartphones versus laptops and desktops connected to wired broadband.  Speed is not as fast with wireless, and phones do not have the computing power and ability to do as many things as PCs.  However, smartphones are very affordable, provide traditional telecommunications service, are extremely mobile, and are increasing in functionality.  The Politic365 article points out that with today’s smartphones, users can perform online banking, e-ecommerce,   social networking, and web browsing quite proficiently.  And, at such an affordable price it is a stepping stone towards computers and wired broadband.

Unfortunately, language like “Cyber Ghettos”, which treats wireless like a second class service, will have the opposite effect than that Colorlines intended.  It is clear from the facts that wireless has brought millions of low income and minority families into the digital age.  A distraction from not factually based rhetoric also hurts the chances of achieving breakthroughs in wireless policy.  Spectrum is a major issue, and one which will really impact the future of the digital divide.  Those truly concerned about the digital divide are focusing on how to make spectrum more available and efficiently used to ensure that it remains a quality and affordable service.