As you might know at this point, competition isn’t exactly open in the wireless communications industry. Spectrum is scarce; you can’t just go out and make a big investment in spectrum and build out a new network. There’s only so much available. The government auctioned off a good chunk of spectrum earlier this year, in what is expected by many to be the last such spectrum auction for some time. So how can a company acquire spectrum under these conditions? Via InformationWeek, we hear of a company called Spectrum Bridge. They’re a secondary market which sets up buyers and sellers of spectrum.

The first thing that came to mind is that a potential new entrant could use the listings to buy up enough spectrum to create at least a regional network. This, however, seems unlikely on second and third thought. More likely, it’s going to be an outlet for smaller spectrum holders to sell their stake at a premium to the already spectrum-rich carriers.

You never know, though. Maybe Leap Wireless can find a new market through this system. Maybe the big companies have some extra spectrum which might be of use to a smaller company. It’s not likely, but it’s not impossible, either. It’ll be interested to see how well spectrum buyers and sellers take to Spectrum Bridge.

Posted By : Joe
Posted at : September 8th, 2008 - 7:30 am
Filed under : Consumer Issues