With the FTC suing AT&T for throttling data speeds on their network similar to Verizon a few months ago, wireless industry analyst, Jeff Kagan, comments that the shortage of spectrum is the real problem that needs to be solved. “This FTC story looks at these issues as wireless companies trying to do something wrong just to increase profits. That’s not what is happening. AT&T, Verizon and other wireless carriers are all facing a bigger threat and problem which the industry needs a solution for. Limited wireless data spectrum,” he said. Wireless carriers like AT&T and Verizon are struggling to come up with solutions to best manage their limited spectrum for a growing customer demand base. “If this was a highway congestion problem, we would simply add more lanes and widen the road. However with limited wireless spectrum that’s not a solution. So what’s the solution? That’s the industry wide problem we face,” Kagan explains. “I think the FTC is focusing on the sneeze and not the cold. I don’t see data throttling as a way for wireless carriers to make more money. Rather is it as way for them to manage the limited wireless spectrum they have as their customers demand more, year after year. This is the growing challenge,” said Kagan. “This wireless data spectrum shortage is a real and growing problem. Scolding companies for trying to better manage their limited wireless spectrum in a competitive industry will not solve the problem. They are just trying to make sure they have enough capacity to service all their customers. What else can they do? There is no real answer today.”
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