This paper examines the Federal Communications Commission's approach to radio frequency allocation in the United States, with particular focus on the Simultaneous Ascending Auction (SAA) process first adopted in 1994. Beginning with the physics of electromagnetic waves and the necessity of organized spectrum management, the paper traces the historical development of frequency regulation from early radio broadcasting through the post-World War II explosion of television, cell phones, and wireless communications. It then analyzes the SAA bidding mechanism, explaining how successive sealed-bid rounds work, what entities may participate, how deposit requirements shape access, and why the prohibitive final cost of spectrum licenses effectively limits participation to the largest corporations.
In order to understand exactly what is meant by "frequency allocation," a basic understanding of the physics of broadcasting is necessary. Electromagnetic waves exist all around us and are created by a variety of different sources — from the Sun to a microwave oven to the radio transmitter of a local college radio station. These waves are all essentially the same form of energy, but they have different wavelengths that cause them to behave in very different ways. A wavelength is defined as the distance between two crests (or two troughs) of the same wave, and radio waves have some of the longer wavelengths of the non-visible electromagnetic spectrum (NASA 2010). Because all electromagnetic waves travel at the same speed in a vacuum, changing the wavelength also changes the frequency of the wave — the number of crests or troughs that pass a given point in a given period of time — and these different frequencies can be picked up individually by fine-tuning receivers. "Frequency allocation" refers to the classification and licensing of different frequencies by governments for use in communications and the transmitting of information, in order to prevent multiple entities from attempting to use the same frequency simultaneously (FCC 2010).
Countries require frequency allocation systems and processes to ensure that communications and scientific research can continue unimpeded, aiding commerce, discovery, scientific development, entertainment, and everyday communications among individuals and organizations. An examination of the United States' frequency allocation table reveals the wide variety of uses that exist for radio waves and the many different allocations that have been made, illustrating the complexity of the situation and thus highlighting the need for an organizing body to allocate and regulate these frequencies (NTIA 2010). Without such systems in place, communications would become extremely difficult, as competing transmissions on the same frequency would make receiving a clear, single signal nearly impossible.
A simple way to picture this problem is to recall a time when a car radio appeared to be wavering between two different stations. In areas where coverage maps overlap slightly, two radio stations may broadcast at the same or very similar frequencies, and the receiver is unable to produce a clear sound from either station — it picks up both signals simultaneously. Frequency allocation eliminates this occurrence in most instances (FCC 2010a).
In the very early days of radio transmission, there was no real need for frequency allocation. There were few receivers set up and even fewer transmitters of any significant power, and when coverage areas did not overlap geographically, an overlap in frequencies caused no confusion on the receiving end (FCC 2010a; Huurdeman 2003). Radio spread quite quickly, however, and the need for frequency allocation by national governments — and eventually international bodies — soon became apparent, leading to the development of regulatory agencies for this purpose (Huurdeman 2003).
As uses for radio waves continued to grow, the need for frequency allocation became more pressing and more complex. Radios are not the only devices that make use of radio waves; radio telescopes are advanced instruments used to study deep space, and frequency allocation ensures that these devices are not bombarded with communications signals during their observations (NTIA 2010). A wide variety of other common and familiar devices — televisions, cell phones, wireless Internet connections, and essentially any device that sends or receives information without a direct wired connection — also rely on the broadcast of radio waves (FCC 2010a; Withers 1993). As the number and diversity of such devices grew, so too did the complexity of managing the radio spectrum.
Early in the 1920s and 1930s, when television was just being developed and causing serious competition for radio frequency rights for the first time, the relatively new Federal Communications Commission and Congress allocated frequencies based on current technological capabilities and patent holdings for the few working television transmission devices (Kittross and Sterling 1979). RCA was a major player in these actions, as it held a near-monopoly on television broadcasting and receiving technologies through various acquisitions and partnerships (Kittross and Sterling 1979). Neither this monopoly nor this system would hold for long, however.
Not only did television manufacturers and broadcasters increase exponentially in the years following World War II, but modern devices and improved broadcast strengths covering wider geographic areas also hugely increased the need for more precise and more varied frequency allocations (NTIA 2010; Withers 1993). For this reason, more frequent, more complex, and more comprehensive methods were developed to assist the frequency allocation procedure in countries around the globe, including the United States (FCC 2010a; Withers 1999). The Federal Communications Commission remains the body responsible for frequency allocation in the United States, and it does so through a variety of processes, including the direct creation of rules based on information provided by industry lobbyists and government analysts (FCC 2010a). Auctions, in which licenses to utilize specific frequencies and bandwidths are sold to corporate entities, are commonly used to grant access rights, but this occurs only after the radio wave spectrum has been divided into broader categories corresponding to the many different purposes for which radio waves are used (Webpaz 2010).
The reasons behind the need for frequency allocation should be clear at this point; the reasons for developing and adjusting specific processes to achieve these allocations are perhaps less obvious. Essentially, processes must be developed to keep broadcast rights and frequency access fair and effective, ensuring that it is not simply the entity with the most money that obtains the greatest broadcast rights (Withers 1999). Processes are designed to ensure that necessary technologies and companies have the access to the radio wave spectrum that they need, while keeping the allocation as democratic as possible (FCC 2010a).
"Costs and deposit rules for acquiring frequency licenses"
"How the SAA bidding mechanism works in practice"
"Eligibility requirements and barriers limiting participation"
Electromagnetic waves are a natural phenomenon and run the gamut from very-low frequency waves traveling through space to extremely high frequency cosmic rays, with the radio spectrum, the visible light spectrum, microwaves, X-rays, and a multitude of other wave types in between. The most useful sections of the spectrum are highly sought commodities in the modern era of advanced communications via satellites, radio and television broadcasting, wireless Internet, and cell phones. As demand increases, the complexity and the costs of frequency allocation have also increased, and these trends seem likely to continue into the future.
You’re 52% through this paper. Sign up to read the remaining 3 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.