Umair Haque / Bubblegeneration
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Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Wednesday, August 18, 2004

The death of spectrum licensing (pdf). Ever wonder why cell phone use costs so much? Why you have to pay out your nose to use what is essentially a free resource. Is it R&D costs, so that wireless companies can bring you the nth generation of services allowing you to check your email, browse the web, pay your bills, talk to your mom, and drive your car all at the same time? Maybe a little bit. It also has a little to do with paying back the cost of all the wireless equipment required to give you ubiqutous coverage. But a portion of it comes from these companies having to cover the costs they incurred when they purchased licenses for a portion of the artificially subdivided EM spectrum. I see this article as one classic example of the death of a licensing model in response to the pressures of the modern digital economy. With devices that can share the spectrum autonomously, the need for an archaic licensing system is long gone.

-- dhd // 8:21 PM // 2 comments


hold on - doesn't this contradict your earlier post about the artificial scarcity of spectrum?
// Anonymous Anonymous // 11:00 PM

I mention the scarcity of the spectrum in my previous post (I realized that I left out the artificial part), and that appears to contradict this article. However, the artificial part is important. The EM spectrum appears to be 'limited' because of the artificial means we have used to split it up and license it out, in addition to the limits of our present technology. The point is technologies such as cognitive radio can begin to use the spectrum to its full potential.
// Blogger dhd // 3:41 PM

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