The cellular industry has severe mood swings with respect to unlicensed spectrum. Presumably the cellular industry is the power behind the recent Spectrum Innovation Act of 2011’s Section 104, which, if adopted, would require an “unlicensed auction” for all new unlicensed spectrum. No one from any industry has spoken publicly in favor of this concept.

However, Thomas M. Lenard, president of the Technology Policy Institute has tried to explain its merits in a post entitled “Use the market to allocate spectrum” in another blog. While the intent of Mr. Lenard appears to be limited to spectrum related to the proposed incentive auction, the language in Section 104 would have made any future new unlicensed spectrum nearly impractical regardless whether it was exclusive unlicensed spectrum in the incentive auction spectrum or even secondary/“junk” spectrum use such as for Wi-Fi or U-NII.

But despite this industry “dissing” of unlicensed spectrum and the dogma that only exclusively licensed spectrum is efficient, the cellular industry has embraced unlicensed quietly in other contexts. In October Fierce Wireless reported,

AT&T said the number of connections to its Wi-Fi network nearly tripled year-over-year in the third quarter to 301.9 million. AT&T also said that the amount of data on its Wi-Fi network in the quarter more than doubled from the year-ago period.

The statistics reflect not only AT&T's growing use of Wi-Fi offloading for its cellular networks but also the wider trend within the industry to use Wi-Fi as a tool to manage mobile data traffic. Indeed, AT&T said that users are now making around 100 million Wi-Fi connections per month, more than the total number of connections made in all of 2009 and five times the total number of connections made in 2008. For now at least, neither AT&T nor any other U.S carrier counts Wi-Fi usage toward a subscriber's monthly data allotment.

AT&T's Wi-Fi hotspots now number 29,000 across the country, and AT&T said hotel locations account for approximately 40 percent of the carrier's total Wi-Fi network traffic.

Yesterday, the usually reliable GigaOM reported

In a sure sign that the cellular industry is getting serious about Wi-Fi, telecom networking giant Ericsson is buying BelAir Networks, adding its high-performance outdoor hotspot technology to its portfolio, sources told GigaOM. The deal could signal a big shift in the mindset of the big wireless vendors, which have always favored their own specialized and expensive cellular technologies to meet growing mobile data demand rather than more generic but much cheaper Wi-Fi technology. ...

As smartphone data usage explodes, consumers have begun turning to home, office and public Wi-Fi to bring their handsets online, taking advantage of fast speeds while bypassing the data caps on their mobile plans. There are some exceptions, such as AT&T, but most U.S. mobile operators have been reluctant to incorporate Wi-Fi directly into their networks, preferring instead to keep customers on their 3G and 4G networks, where they can collect data revenues and maintain control of the network connection. With big vendors like Ericsson on board, though, that attitude could be changing.

While your blogger was responsible for bringing a total of 5234.5 MHz into unlicensed use through the proposals he drafted and the decisions he helped draft in Dockets 81-413 and 94-124, he does not see unlicensed as a panacea for all the world’s spectrum problems. Exclusive licensed and unlicensed band both have positive points and both contribute towards an efficient telecom infrastructure.

It is unfortunate that many on both sides view the choice between licensed and unlicensed as a zero sum game with respect to the long term interests of the cellular industry. The continuing industry interest in Wi-Fi shows that the truth is more complex.

Tags: spectrum policy , unlicensed policy