Due to the increases in technology, there are an increasing amount of signals and wavelengths
that are being transmitted every day. But in recent years there has been a push
for change in the world of wireless signals. In 2009, the last of the country’s analogue television transmitters
switched to digital broadcasting. This switch was important because digital
transmissions do not interfere with one another so they can be packed closer
together. Before, these signals needed “guard bands” of buffer frequencies to make
sure they would not interfere. At some places, these unused frequencies accounted
for about 70 percent of the total bandwidth. These unused frequencies are
called “White Space.”
For some
time now mobile phone companies have been really pushing to gain access to all
of these empty television airwaves. So the FCC (Federal Communications Commission)
finally gave the green light for others in America to use this airspace. Mobile
companies such as Verizon and AT&T have paid up to $20 billion dollars to
get their share of the airwaves. The prime airwaves are in the 700-megahertz
band. This certain frequency of airwave is not affected by any weather
conditions, foliage or any infrastructure. These wavelengths will allow mobile
carriers to ten times the coverage from a single tower than what they could with
existing frequencies. White space could very well become a tradable commodity
within the next decade. This will raise the amount of investment and money
borrowed in the world economy as broadband resources become available.
Economic
growth depends more on technological change than on increases in capital per
hour worked. This is due to the
diminishing returns that capital has on productivity. If a country is saturated with capital, the
most efficient way to increase productivity is through technological advancement.
The transition to using white space
should greatly lower the price of broadband (internet). This means that companies with fewer funds
are able to start up. This is identical
to an increase in aggregate supply caused by the discovery of new natural
resources, in this case the natural resource is air waves. We know that more resources causes an increase in both short run and long run aggregate supply. Everything else equal, this means that we should see growth in real GDP and a lowering in price levels because of this technological advancement. Of course, other things are going on in the economy which may change this, but overall this change has a positive effect on growth.
A new
revolution in wireless technology may be just around the corner. The de-regulation
of all the white space in this country was a big step in more efficient
broadcasting. Yes, white space has been accessible for quite some time. But,
the usage of it has been limited. Companies are now able to access frequencies
that are most suitable for their product which will enhance efficiency and effectiveness
for products. This will greatly affect mobile companies because now hotspots
are turning from just single rooms and coffee shops to entire neighborhoods.
White space has always been there but now it is going to be fully utilized,
which will have a positive effect on economic growth.
