A flurry of this week’s headlines caught my eye, apparently generated by Washington Post reporter Cecilia Kang’s February 3rd story stating that, "The federal government wants to create super WiFi networks across the nation, so powerful and broad in reach that consumers could use them to make calls or surf the Internet without paying a cellphone bill every month. . . But public WiFi could allow many consumers to make free calls from their mobile phones via the Internet. The frugal-minded could even use the service in their homes, allowing them to cut off expensive Internet bills."
The source? No one less than the FCC Chairman, Julius Genachowski, it turns out. Ms. Kang asserted that this FCC Chairman proposal "rattled the $178 billion wireless industry" who "launched a fierce lobbying effort to persuade policymakers to reconsider the idea", and was countered by "an equally intense campaign from Google, Microsoft and other tech giants who say a free-for-all WiFi Service would spark an explosion of innovations and devices that would benefit most Americans, especially the poor."
This story sparked headlines across the nation’s newspapers and blogs. One example appeared in the Atlanta Journal Constitution: "Free Wi Fi for Everyone? FCC Says Maybe." Tongue-in-cheek, one VentureBeat reporter commented, "FCC plans powerful nationwide Wi-Fi. Also rainbows and ice cream for everyone."
In looking closely at what caused these startling headlines, I went back to peruse the October 2, 2012 Statement of the FCC Chairman relating to the Broadcast TV Spectrum Incentive Auction Notice, which is the reported basis of the original WashPost story. In that Notice, the FCC is soliciting comment as it implements a new incentive auction spectrum law passed by Congress last year. Under the law, broadcasters may voluntarily turn in their spectrum in return for a part of the future auction proceeds of such spectrum to bidders. Most of the spectrum would be auctioned to companies who wish to use it for mobile broadband purposes, but the Chairman in his separate statement highlighted that "a significant amount" of unlicensed spectrum would be set aside for "Wi-Fi-like uses." Genachowski said that the FCC’s proposal (still not approved) would create the first nationwide unlicensed spectrum band suitable for a robust wireless broadband uses.
The Chairman properly points out that unlicensed spectrum has unleashed innovation, investment and economic growth since its classification as "unlicensed" in 1985. It is estimated that about one-third of mobile traffic is offloaded to Wi-Fi, which helps carriers and consumers manage capacity on their networks. Other uses for unlicensed networks include allowing users to connect wirelessly to their home and business Internet networks, stream news and movies to their tablet devices such as iPads, connect hands-free Bluetooth devices such as baby monitors and garage door openers, and monitor inventory using RFID tags.
Nowhere, however, does the FCC Chairman’s statement say that the federal government is going to build these "Super Wi-Fi networks," or that the networks will be available free to users such that it would be feasible to terminate your wireless or wired broadband subscription.
What the FCC is doing is proposing the sensible idea to have more unlicensed spectrum than before. This means the users of this spectrum do not have to bid in an auction to get an FCC license or seek an FCC license in advance to use this spectrum. This is just an FCC proposal; not a decision. Those who choose to make this unlicensed spectrum available via Wi-Fi networks will need to build a network, buy equipment, hire personnel to run the network, etc. While a governmental entity, an educational institution, or a large health care facility may make it free to its immediate community of interest, it is hard to imagine a company proposing a national network of that scale without charging something for its services to users. I could be wrong, but I don’t think I am.
So if you hoped to terminate your contract with your wireless provider or your home broadband provider, it may not happen for a while. We may get rainbows and ice cream for everyone first.
