**Remarks of**

**Jonathan S. Adelstein**

**Commissioner, Federal Communications Commission**

**"A View on Today's Most Pressing Wireless Issues"**

**The Fifth Annual Conference on Spectrum Management**

**Law Seminars International**

**Arlington, VA**

**September 18, 2008**

\[As prepared for delivery\]

Thank you for the kind introduction and for inviting me here to be a
part of your conference. I always like to speak on the issue of spectrum
management for wireless communications systems, because I'm a big
believer that our future economic competitiveness and productivity lies
in the continued expansion of spectrum-based services. And with our
nation's economy in real trouble, a key part of a long term strategy to
restore growth is to promote broadband deployment -- including a special
focus on fostering wireless solutions.

Clearly, the use of wireless services is increasingly a necessary and
integral part of our everyday lives. With over 264 million
subscribers[^1] of wireless services and estimates that the total value
of wireless broadband and mobile voice services may exceed \$427 billion
by the year 2016, the impact of our use of the spectrum is
undeniable.[^2]

This is such a dynamic time for your industry. Looking at the wireless
marketplace today, it is remarkable to see the broad array of video,
voice and data applications that are beginning to be common place on the
latest handsets devices. The two pound cellular "brick" phone of over 35
years ago has shrunken and grown up at the same time. Our cellular
telephone is evolving into a sleek "smart" device that enables us to
email and instant message, socialize, organize, surf the Net or watch
the latest videos, conduct financial transactions, and, yes make a phone
call.

With multiple open network platforms for mobile devices taking shape, we
are seeing an impressive level of innovation occurring. I attended last
week's CTIA show in San Francisco and saw firsthand how that innovation
is driving the development of new applications and novel handset designs
which translate into a richer experiences for consumers. Coming at the
heels of the Commission's new approach to spectrum management --
specifically, our adoption of a meaningful, though not perfect open
access environment on a significant portion of the 700 MHz spectrum, I'd
like to take credit for all this innovation. But seriously, clearly the
market is moving toward openness. Consumers are demanding it; true
innovation requires it; and those companies who do not lead on it will
find themselves left behind. In that context, I continue to hear from
innovators that the open access conditions on the 700 MHz spectrum is
playing a key role in spurring creativity. Our decision represented an
honest, good faith effort to establish an open access regime for devices
and applications that will hopefully serve consumers well and create
opportunities for providers for many years to come.

The main driver of innovation is the rapidly growing consumer demand for
wireless communications services and broadband applications in
particular. It is most apparent in the success of the next generation of
smart phones. We can simply look to the iPhone, a breakthrough and
market changing device. AT&T reports that 95% of iPhone users regularly
surf the internet and 51% watch videos on YouTube.[^3] The limits of
mobile broadband are crumbling as handheld devices become more
versatile. We at the FCC need to help providers get in a position to
accommodate these increasing spectrum demands.

Take, for example, the recent study produced regarding teens' use of
mobile devices. It indicates that 79% of all teens have a mobile device,
a 40% increase from just four years ago. Fifty-seven% say it's central
to their social life.[^4] Maybe since I didn't have one as a kid, that
explains my lack of a social life. Teens are early adopters --- they are
quick to embrace text messaging, mobile video content, and ring-tones.
Now nine out of ten teens text, and 42% say they can do it blindfolded.
These uses have driven innovation in broadband applications. Now content
providers and social sites like Facebook are quickly being incorporated
into mobile applications to include broader messaging and multimedia
content. So it is not surprising that these "Generation M" demands are
driving innovation. They are shaping the latest handset designs and
applications. This bodes well for the future of the industry, since they
will continue to drive demand as they age and the next generation will
demand even more innovation.

In light of this innovation and increased usage, it is of the utmost
importance that we make the most efficient use of the spectrum. As I
like to say, "God isn't making any more spectrum" -- so we need to make
the best use of the spectrum we have. With new technology comes an
increase in mobile use, and increased use creates rising demands on
carrier infrastructure. Meeting consumer expectations requires major
increases in the number of radio carriers, towers, cell sites and
backhaul. That's why facilitating the deployment of infrastructure for
our spectrum-based providers is critical. We have to remember that after
the first cell phone was developed, it was 10 years later and nearly
\$100 million in development costs before the phone went commercial in
light of the need to build towers and the required infrastructure.[^5]

**Need For Communications Infrastructure, Spectral Efficiency and
Management**

The future success of our economy will demand that we promote the
expansion of communications infrastructure, as a start. The construction
of communications towers is necessary to achieve the rapid deployment so
many people want. Every day, Americans are expecting wider availability
of advanced communications services. Towers will not only form the
backbone of the transition to digital television, they are used around
the clock by public safety and are a critical component of our nation's
homeland security efforts. We need to take a close look at CTIA's
petition that would set a shot clock on the amount of time local
authorities spend reviewing tower applications. Congress intended that
the Commission act to prevent unreasonable delays so we need to consider
all potential solutions to such delays.

While consumers heavily rely on their cell phone service, many don't
want the infrastructure that makes it possible in their back yards. In
traveling the country, no matter where I am, people regularly ask me to
help them get better mobile wireless coverage, particularly in rural and
underserved areas. So it is important that we make vibrant,
spectrum-based communications opportunities available to more consumers
and companies. We need to do what we can to promote opportunities to
expand wireless connectivity, as well as to reach our most underserved
communities with broadband access.

In addition to promoting the communications infrastructure, we need to
consider and improve upon those technologies that optimize the use of
the spectrum. Spectral efficiency is essentially getting the maximum
amount of information transmitted over a given amount of spectrum. So
that is why, as a Commissioner, I see my job as working to pack as much
data -- as much communications -- over the spectrum as we possibly can.

It is our agency's mission to manage the public spectrum in a manner
than not only promotes efficiency, but encourages the development and
availability of innovative tools and services.

Technology is developing rapidly in this direction. For example, a few
companies are beginning to develop smart antennas, which are a practical
and economical way of increasing capacity and performance. Unlike their
standard counterparts, smart antennas allow network operators to change
antenna patterns to adjust to changing traffic or radio frequency
conditions in a network. Femtocells, another example an emerging
technology, serve as access points and allow for seamless transition
between a cellular network and a broadband Internet connection in order
to make phone calls. The technology, in addition to providing spectral
efficiency, improves indoor coverage and expands network capacity.
Similarly, cognitive radio, a wireless communication that can
reconfigure itself -- changing its reception or transmission parameters
to avoid interference - is also a promising means of optimizing use of
the spectrum while minimizing interference. These are all important
technical developments in spectrum management that you will hear about
later today from your distinguished panelists.

We are also hearing from Congress on the importance of spectrum
efficiency and management. Earlier this month, Senator Byron Dorgan sent
a letter to Chairman Martin regarding the FCC's existing spectrum
management practices. Senator Dorgan is requesting detailed information
on licensed spectrum under the FCC's jurisdiction saying that there is a
need to ensure the efficient use of the nation's airwaves. I agree.
We'll also need to collaborate with our colleagues at the NTIA for this
common goal. That means coordinating with the agency and the Commerce
Spectrum Management Advisory Committee to identify more public spectrum
the government can make available for commercial use, and to develop and
implement smarter spectrum policies to better manage this valuable
resource. Charging agencies for use of the spectrum might just get their
attention enough to free up some spectrum, and rewarding them with part
of the auction proceeds might add some tasty carrot to the stick.

**[Role of Wireless in a National Broadband Strategy]{.underline}**

We are witnessing much faster revenue growth for wireless services
relative to traditional landline service. As we consider our
ever-increasing ability to access any number of broadband services and
applications from mobile devices, the role that wireless can play in our
nation's overall broadband deployment strategy is apparent. Any
effective national broadband strategy will rely heavily on wireless
broadband as the wave of the future, and a key element to reach hard to
serve areas. This makes even more pointed the need for focused efforts
on spectrum efficiency and management.

One of the best options for promoting broadband, particularly in rural
areas, and for providing new competition all across the country, is
maximizing the potential of spectrum-based services. Through innovative
use of the spectrum, instead of the "third pipe to the home," our mobile
devices hold promise as the "third channel to the consumer." To get
there, I am continually evaluating the FCC's service and construction
rules to ensure that our policies do not undercut the ability of
wireless innovators to get access to new or unused spectrum. I have
advocated a carrot and stick approach. We want to promote flexibility
and innovation, but since the spectrum is a finite public resource, we
want to see results as well.

And while we've made progress, the FCC must do more to ensure that we
push the leading edge of spectrum policy. As you will hear over the next
two days, the Commission is considering a number of significant items on
the topic of spectrum allocation and policy. For example, we are
continuing to assess approaches for the unlicensed use of white spaces.
We are carefully exploring the cognitive radio, spectrum sensing and
geo-location based technologies that are available to see how they can
enable spectrum facilitation in the unused television bands, or so
called "white spaces." Of course, broadcasters have used the public
spectrum for many years to serve rural and urban areas alike in
providing news, civic information, education and entertainment. I fully
support our efforts to ensure that harmful interference is not caused by
the operation of unlicensed devices and look forward to reviewing the
testing results from our Office of Engineering and Technology.

We are also considering rules for the allocation of spectrum in the
Advanced Wireless Services band. There is intense debate on both sides
on the proposed rules, both as to interference concerns as well as to
the concepts of a "free" broadband service and content filtering
requirement. As I have made clear, this band holds great promise for
operators to introduce new offerings of innovative wireless broadband
services to American consumers. But unused spectrum is a lost
opportunity. The Commission has to do what it can to promote
opportunities to expand wireless connectivity and to ensure that
available and desired spectrum is put to use in a timely fashion. So I
look forward to resolving the outstanding issues raised in this
proceeding.

And of course, we are now considering a further notice and auction rules
for the 700 MHz band D block, a critical opportunity for a nationwide,
interoperable public safety network. This spectrum gives us a new
opportunity to come to grips with our country's public safety dilemma.
But the first attempt at auctioning it fell flat, and the assessment and
implementation challenges remain daunting. As we've learned during our
summer public hearing on this issue in Brooklyn and throughout this
proceeding, the breadth and complexity of the technical issues and cost
elements that play a role in assessing the various parameters of a
nationwide interoperable public safety network are enormous. Though I
continue to believe that direct Federal funding for building a national
public safety broadband network is preferable, I am working diligently
with my colleagues to consider the draft rules before us.

**[Conclusion]{.underline}**

So we certainly have our work cut out for us. All of the challenges make
these exciting times for the spectrum-based services industry. What
seems clear is this - if we are going to see real broadband competition,
it probably has to come from wireless. Without a doubt, spectrum-based
services ultimately will be the next driver of competition and
innovation in the broadband space. So, we all will play an important
role in promoting the further deployment of spectrum based services for
the benefit of our country and economy. I wish you the best of luck with
your conference, and I look forward to working with you to make America
the world's leader on spectrum policy and deployment.

[^1]: CTIA, *U.S. Wireless* *Quick Facts and Figures* available at
    http://www.ctia.org (last visited Sept. 17, 2008).

[^2]: Roger Entner, *The Increasingly Important Impact of Wireless
    Broadband Technology and Services on the U.S. Economy*, Ovum, Sept.
    2008 available at http://graphics8.nytimes.com/packages/pdf

    /technology/20080521_Ovum_EconomicImpactReport.pdf (last visited
    Sept. 17, 2008).

[^3]: Ralph De la Vega, CEO of AT&T Mobility, Keynote Speech at 2008
    Mobile World Congress, Barcelona, Spain, Feb. 2008 available at
    http://www.att.com/gen/landing-pages?pid=7728 (last visited Sept.
    17, 2008).

[^4]: CTIA & Harris Interactive, *Teenagers: A Generation Unplugged*,
    2008 available at
    http://www.ctia.org/advocacy/research/index.cfm/AID/11483 (last
    visited Sept. 17, 2008)

[^5]: Associated Press, *First Cell Phone a True 'Brick,'* MSNBC, Apr.
    11, 2005 available at http://www.msnbc.msn.com/id/7432915/ (last
    visited Sept. 17, 2008).