The Federal Communications Commission (FCC) unanimously voted earlier this week to expand and enhance the use of unlicensed spectrum in the 6 GHz band, increasing high-quality wireless connectivity for innovative technologies developed and used by startups. For early-stage companies, access to unlicensed spectrum impacts operating costs, product or service quality, user reach, and overall competitiveness.
Spectrum refers to the invisible airwaves of the electromagnetic spectrum that carry data and enable wireless products and services to connect and communicate. Licensed spectrum consists of specific frequency bands assigned by regulators for exclusive use, including by cellular network operators such as AT&T and T-Mobile for mobile phone communications, broadcast television and radio stations such as AM/FM stations, satellite tracking such as GPS, and public safety communications used by emergency services.
In contrast, unlicensed spectrum encompasses frequency bands that are available for shared use without the need to purchase exclusive licenses. It supports technologies such as Wi-Fi, Bluetooth, RFID, and a wide range of connected devices, including wearables, AR/VR headsets, wearables, and automation technology. Unlicensed spectrum allows multiple users to access the same frequency bands as long as their devices meet certain technical standards to prevent harmful interference.
The FCC’s vote this week establishes a new category of devices that can operate in unlicensed spectrum called geofenced variable power (GVP) devices, which can function outdoors and at higher power levels than previous devices in the 6 GHz band. Devices operating in unlicensed spectrum must comply with technical standards that limit transmission power and range to prevent interference with other bandwidths and users. GVP technology allows devices with GPS capabilities to determine their location and automatically adjust their power levels to ensure compliance with technical standards while avoiding interference. GVP devices will support data rates sufficient for AR/VR, short-range hotspots, automation, and indoor navigation technologies and innovations.
The FCC oversees communications technology regulations, including the allocation and management of wireless spectrum in the U.S. Congress recently reauthorized the FCC’s authority to auction spectrum licenses, which generates billions in revenue for the federal government. Licensed spectrum is allocated through FCC auctions while unlicensed spectrum is available for use by anyone as long as devices meet defined technical standards.
American competitiveness in innovation depends on access to unlicensed spectrum. Unlicensed spectrum allows startups to use airwaves without purchasing costly licenses, which are typically affordable only to large industry incumbents. As a critical public resource, it supports the development of technologies and enables startups to deliver their products and services quickly, reliably, and affordably. Spectrum is a finite resource, and it’s highly regulated to promote efficient distribution and prevent interference among users.
Expanding and enhancing unlicensed spectrum is an important step toward strengthening the innovation ecosystem as startups benefit from more access to airwaves. Policymakers must ensure that all airwaves are used effectively to prevent congestion and interference in existing unlicensed bands. Increasing unlicensed spectrum ultimately broadens opportunities for startup innovation.
Disclaimer: This post provides general information related to the law. It does not, and is not intended to, provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact an attorney directly.
