Spectrum Availability Ultimate Barrier for Operators: Report

With Verizon acquiring spectrum from SpectrumCo and Sprint controlling Clearwire spectrum and AT&T T-Mobile already in the mix, the Strategy Analytics report analyzes recent deals and the resulting spectrum that will be controlled by the top three.

The spectrum race is heating up and battle lines are being drawn across the U.S. Mobile Broadband space as the three large operators expand capacity into small cities and even rural areas in the United States.

“In the US, Verizon, Sprint and AT&T will compete to offer users more bandwidth on this additional spectrum to satisfy the dramatic growth in demand described in the Strategy Analytics report, Phil Kendall, Director Wireless Operator Strategies.

According to the report, the deployment of LTE across the spectrum adds yet another dimension to this race as it creates an “All-IP” Mobile Broadband network to virtually eliminate local boundaries. This would mean that even the smallest regional competitor will be positioned to offer a wide range of services over the mobile version of the Internet.

Sue Rudd, Director, Service Provider Analysis for Strategy Analytics noted that the definition of “Relevant Geographic Market,” will undergo a change. She also added that this would give small regional operators the chance to develop IP-based services and strong brands to compete with the larger operators.

If this happens, then the report states that spectrum availability will be the primary barrier to decide entry and growth and the digital promise envisaged in the 1990s may actually be achieved.

In another study, Strategy Analytics predicts the key market changing events in the apps market for 2012. Manufacturers, developers, and content owners recognize apps opportunities in bringing differentiated products to market while locking consumers into an ecosystem. As a result, in 2012, many companies will begin integrating apps with their devices while market leaders will seek ways for maintaining their edge in any way possible.