In their November 4 meeting, the FCC deferred a decision on the major issue at hand but did move forward on a few wireless initiatives. The big issue was an overhaul of the Universal Services Fund and the byzantine arena of inter-carrier compensation. While those areas need attention desperately with the advance of IP telephony, the acrimonious FCC apparently realized that no agreement would be reached and yanked the issue off the agenda prior to the meeting. They did decide to put their stamp of approval on the Sprint-Clearwire combination for the Xohm WiMAX service and for Verizon’s acquisition of Alltel Wireless

However, the big news was the Commission’s approval of the use of TV White Space for unlicensed applications. The final rules have still not been published, but the devices will require a frequency sensing mechanism to avoid interference with over-the-air TV broadcasts and other applications in those bands. Among the opponents were wireless microphone manufacturers and Broadway theaters whose listening assistance systems operate those channels. Singer Dolly Parton apparently added her voice to the opposition; I’m sure her antennae were up.

The White Space approval was not a sure shot, as the mock-up devices used in the FCC sponsored trials had more than their share of well-documented difficulties. In the tests the prototype devices did not consistently sense or detect TV broadcast signals and in some cases caused interference to those broadcasts. Despite the testing glitches, the FCC apparently had faith that the proponents would be able to come up with a design that would protect other users while opening up this significant resource to new applications.

The spectrum involved is in the sub-700 MHz band. That is the band below the 700 MHz channels the FCC auctioned for close to $20 billion last March-  but this is FREE! Despite the price break, those lower frequency signals still lose less power as they travel requiring fewer base stations to cover an area and have better penetration characteristics to improve indoor operation.

The big new is that two powerful lobbies got knocked down a peg. The first is the TV broadcasters who have enjoyed a special place in Washington’s heart since television began to have an impact on the electoral process in the 1950s. The other is the cellular carriers. This is where White Space gets interesting as this technology might eventually develop into real competition for the cellular carriers. While the cellular carriers will likely focus on the long-shot chance that a combined Sprint and Clearwire might eventually whip WiMAX into a serious contender, they could blindsided by an unlicensed onslaught in the White Space arena.

Stay tuned.