FCC Action Quietly Enables an Industry, says ABI Research

OYSTER BAY, N.Y.--Oct. 1, 20048, 2004--Without ballyhoo, the U.S. Federal Communications Commission recently opened up licensing for the 5.9 GHz frequency band, thereby paving the way for private sector deployment of Dedicated Short Range Communications (DSRC) systems along America's roads and highways.

Any organization can now, for what is expected to be a relatively affordable fee, buy a nonexclusive license to erect towers in a defined geographical area, which could be as large as a whole U.S. state.

According to ABI Research analyst Dan Benjamin, transmitter towers must be registered with the FCC, and in cases of interference, law enforcement, public safety and general public good receive priority. But within those constraints, business can make use of the frequency for their own purposes.

Prior to this FCC action, it was assumed that most of the infrastructure for any future DSRC networks would be built by - or at least paid for by - the federal Department of Transportation. Now, however, it appears that private industry will be able to build its own.

This paves the way for construction of new wireless networks allowing real-time traffic updates to be beamed right into a vehicle's navigation system, universal automatic toll collection, streaming entertainment, intelligent safety systems, even interactive commerce.

Does this signal the start of a "land rush" to stake out territory? Benjamin thinks not: "The instigator for DSRC will be the addition of transmitters to the vehicles by automotive OEMs," adding, "Right now there are no vehicles that can actually use the signals at 5.9 GHz. Transmitters will be added to vehicles later this decade, and companies should start planning their infrastructure deployment strategy soon."

ABI Research's report, "Dedicated Short Range Communications (DSRC) analyzes RFID and Wi-Fi based offerings for the vehicle, along with competing and supporting technologies for DSRC networks, in addition to potential business models.

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