October 25, 2010

FCC moving forward with mobile broadband plan that could provide half a trillion economic boost when deployed

The Federal Communications Commission this week moved closer to advancing its goal of reallocating large swaths of wireless spectrum to power new, next-generation mobile broadband networks.

The FCC projects a 35-fold increase in mobile broadband traffic over the next five years. (Mostly from tablets, netbooks and portable computers that substitute for PCs using fixed broadband).

The FCC has a goal of freeing up 300 MHz of spectrum for mobile broadband in the next five years would create a market value of $120 billion for the spectrum alone, with a several-fold multiplier effect across the economy once that spectrum is deployed.

Estimates of the broadband multiplier effect on the economy are 4.1 times. This would be $492 billion based on the $120 billion value of the spectrum.

The FCC broadband plan set the goal of freeing up 500 MHz of spectrum over the next 10 years, with the five-year milestone of 300 MHz.

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