IDT Spectrum announced last Tuesday that it is selling off its portfolio of spectrum, which includes 931 licenses at 38 GHz and 16 licenses in the 28-31 GHz LMDS range. According to Monica Alleven of Wireless Week, for wireless operators or others interested in solving the backhaul dilemma, the spectrum could be a useful asset.
According to an article in Wireless Week, IDT Spectrum’s President, Michael Rapaport isn't naming names but says the company started getting inquiries from larger carriers and decided to put the spectrum out on the market and let everyone have a chance at it. "We have known for a long time that there's a tremendous need for our spectrum," he says. "It's a function of maximizing shareholder value."
In another article from Wireless Week, IDT was quoted as indicating that it wants to sell the spectrum as a single nationwide bundle as opposed to a market-by-market approach. Besides Tier 1 or other wireless carriers, the article noted that cable companies might be interested in acquiring the spectrum, as well as tower companies that want to compete with FiberTower, which owns similar spectrum.
According to an article in Information Week (and some other publications), the spectrum issue has caught the attention of the chairman of the Federal Communications Commission, Julius Genachowski, who has said there is a "looming spectrum crisis." According to the same article, the move comes as the industry is increasingly questioning if there is enough spectrum to handle future mobile data needs, particularly as devices like the iPhone lead to data-hungry applications. For example, AT&T said its wireless data traffic has increased by more than 18 times over the past two years. The article noted that this trend is expected to continue, as Motorola recently said nearly 40 million American consumers actively use mobile Internet services, a 75% increase from just two years ago.
