Microsoft has unveiled a plan to use TV white-space spectrum to bring broadband access to rural America. Chief legal officer Brad Smith outlined the plans in a speech at the Media Institute in Washington, DC.
The Federal Communications Commission estimates that more than 23 million people in rural areas lack fast internet access of at least 25 Mbps. Microsoft believes this gap can be closed within five years, using technologies like the unlicensed TV white-space spectrum and a combination of public and private investment.
The company sees white-space technology and hardware well-developed enough to move ahead with mass deployment. A study conducted with Boston Consulting Group found TVWS could be used to cover around 80 percent of the rural premises in the US currently without broadband. A combination of satellite, fixed-wireless and fibre could cover the remainder, with the mix depending on the population density in each area.
Microsoft estimates the above plan would cost USD 8-12 billion for the initial capital and operating cost. This is around 80 percent less than rolling out fibre and over 50 percent cheaper than the cost of fixed wireless technology like 4G.
The company's own Rural Airband Initiative plans to invest in TVWS partnerships with telecommunications companies to bring broadband connectivity to 2 million people in rural America by 2022. This should mean at least 12 projects up and running in the next 12 months.
Microsoft will also license its technology to help other investors start their own projects. It promises royalty-free access to at least 39 patents and sample source code for technology it's developed to enable broadband connectivity through TV white spaces spectrum in rural areas. The company further assumes support from the FCC in ensuring license-free access to the spectrum and called for matching funds from state and national public authorities for the projects.
Microsoft has tested white-space technology for several years in a number of countries, focusing on developing markets in Africa, Asia and South America. It's participated in 20 projects in 17 countries that have served 185,000 users. The spectrum in the 600 MHz band works well for internet access, as the same as the adjacent frequencies used for TV, it can overcome obstacles such as hills, buildings and trees.
More recently Microsoft provided USD 250,000 to Mid-Atlantic Broadband Communities in Virginia to bring white-space service to 1,000 customers by year-end. The service, which residents acquire through local schools, provides free internet access to a limited number of education-related sites at speeds of about 3-4 Mbps. Customers can pay USD 10 per month for the service, or go up to USD 40 per month for 8-10 Mbps. About 90 percent of homes have opted for the free service, according to the company.
One obstacle to the company's plan is the broadcast industry. In a letter to the FCC the day before Microsoft's announcement, the National Association of Broadcasters said there are only 800 white-space devices registered in the US and that many of these are just test devices. The NAB suggested that Microsoft was exaggerating the possibilities of the technology and not considering enough the possible interference with TV channels.
