[opendtv] FLO Spectrum Sale Hints at UHF Spectrum Value

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 22 Dec 2010 16:29:14 -0600

IMO the main thrust of the article got lost in the discussion of band 
aggregation.

True, the 6 MHz channels vacated by TV stations are not enough to support 
wireless broadband. But the 3G and 4G wireless standards are capable of 
aggregating different frequency bands, to achieve their 5, 10, or 20 MHz 
bandwidths. (Some more than others. 3G cdma2000 can aggregate slices of just 
1.25 MHz. LTE is similar. WCDMA is not as clever in this regard.)

So the question is, why the low per-market value placed on Ch 55?

Bert

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http://www.tvtechnology.com/article/111190

FLO Spectrum Sale Hints at UHF Spectrum Value
by Doug Lung, 12.22.2010.

One of the precepts of the FCC's plan to reallocate up to half the usable 
broadcast TV spectrum for broadband is that the market value of the spectrum 
would be much greater if it's used for broadband rather than for broadcasting.

If the price AT&T is paying for Qualcomm's prime FLO spectrum is any 
indication, the FCC may have a hard time convincing broadcasters to voluntarily 
give up their spectrum.

AT&T is set to pay $1.925 billion for spectrum currently used for Qualcomm's 
FLO TV operation. While that may sound like a large amount, consider that, 
according to the TWICE article on the shutdown, FLO was operational in 107 
markets. Dividing 107 into $1.925 billion gives an average price per market of 
only $18 million. The price per channel would be less, as Qualcomm also owns 
Block E spectrum in some markets.

How many TV stations would be willing to give up their TV channel for $18 
million? In reality, they would receive much less, as the government would want 
its cut for deficit reduction.

One possible reason for the lower price is this is "unpaired" spectrum--there 
isn't a separate block of frequencies to be used for two-way communications.

This doesn't appear to be a problem for AT&T, however. An AT&T and Qualcomm 
press release announcing the deal said that "AT&T intends to deploy this 
spectrum as supplemental downlink, using carrier aggregation technology. This 
technology is designed to deliver substantial capacity gains and is expected to 
be enabled with the completion of 3GPP Release 10."

It's hard to imagine UHF broadcast spectrum bringing a much greater price. 
After all, the FLO spectrum is close to frequencies that Verizon is using to 
build out its LTE network, so equipment will be available. The spectrum doesn't 
have to be cleared, and there are no adjacent broadcast channels to cause 
interference.

An article in TWICE on the sale, Qualcomm To Sell FLO TV Spectrum to AT&T 
states. "Qualcomm also plans to develop LTE multicast technologies specifically 
to deliver high-bandwidth video and other multimedia content."

LTE multicast sounds a lot like broadcasting to me.

Perhaps broadcasters should stop using the phrase "Mobile DTV," and instead 
call it "broadband multicasting" or "wireless multicasting" to make it sound 
more 21st century.
 
 
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