High spectrum prices force wireless carriers to invest in pico-cells
Verizon Wireless’ said there are a handful of areas in which it had hoped to increase its spectrum holdings, but will instead use small (or pico) cells to increase frequency reuse on the network rather than simply using a larger block of spectrum. “We simply have to adjust our plans in certain places where we may have anticipated spectrum.†New York and Boston are two markets in which Verizon Wireless did not acquire additional 1.7/2.1 GHz spectrum in the recent auction. Their budget for this year now includes an incremental $500 million for this kind of network densification.
Melone added that as the cost of spectrum has risen, the cost of small cell technologies has been going down. “The comparison between the two changed dramatically,†he said. Verizon also highlighted the improving economics of fiber as one of the reasons that small cells are becoming a more attractive investment.
This seems to support the FCC's decades-old policy of using auctions as the most efficient way to allocate spectrum resources where they are most needed, in a simply supply & demand model. Never mind the substantial new source of income the US federal government has seen from the process.
Melone added that as the cost of spectrum has risen, the cost of small cell technologies has been going down. “The comparison between the two changed dramatically,†he said. Verizon also highlighted the improving economics of fiber as one of the reasons that small cells are becoming a more attractive investment.
This seems to support the FCC's decades-old policy of using auctions as the most efficient way to allocate spectrum resources where they are most needed, in a simply supply & demand model. Never mind the substantial new source of income the US federal government has seen from the process.