Carl-Johan Torarp describes the LocalLoop solution that allows relatively rapid deployment of 4G wireless services by service providers at a cost that is lower than traditional methods. The key to their solution is bringing many of the elements of the 4G infrastructure into the cloud, such that the upfront costs are minimal. From an operational standpoint, the provider pays LocalLoop on a subscription basis, so most of the costs are variable, promising a fast return on an operator’s investment.

Regarding spectrum, Torarp is a big proponent of “light-licensed” 3.65 GHz for those entities that don’t have their own spectrum. LocalLoop’s solution is transparent to the spectrum, however, and works with licensed frequencies as well. They have partnerships with hardware vendors (tower and CPE), providing a complete wireless solution. Their solution can be used for fixed, mobile and either an edge-out into new markets or as an overlay into existing markets.

“FCC Proposes to Make 150 MHz of Spectrum Available for Broadband” [Added 4/24/14] 

With the FCC’s approval yesterday morning of the NPRM proposing a “Citizens Broadband Service” in the 3550 MHz to 3,700 MHz band, the ability for carriers to deploy 4G-like services may get easier. Using a shared, lightly licensed, TV-Whitespace database approach, this could be a boon for rural areas (and for small cell sites, as well) and for the type of solution promoted by LocalLoop, at it opens additional spectrum and potentially creates a market for greater volume of components optimized for this spectrum and will lower costs.

These rules would eliminate the non-exclusive, national 3.65-3.7 GHz license  (Part 90.1307) described by Torarp, although those licensees would be grandfathered for five years after the adoption of the proposed rules. The rules for spectrum licensing will be included in a new section, Part 96, of Part 47 of the Code of Federal Regulations (CFR)  Code of Federal Regulations.

“We are moving. Let’s get this resolved,” said FCC Chair Tom Wheeler at the 4/23 FCC Open Meeting, about sharing the 3.55 to 3.7 GHz spectrum. “We created the impetus,” he said, to push forward the use of this spectrum; that is pushing along other Federal entities to better use their spectrum and understand interference effects between existing government uses (e.g. RADAR).

To this point, they are still studying what is necessary in the “exclusion bands”, which are intended to protect incumbent users. As pointed out by Commissioners Pai and O’Reilly, these exclusion bands are quite large and, under the proposed rules, prevent this spectrum from being used on the coasts.

One of the things that makes this proposal unique is that it uses a, “Three-tiered spectrum access model, which includes federal and non-federal incumbents, priority access licensees, and general authorized access users.“. In those cases where there is demand for spectrum from rival uses, there will be a mechanism for mini-auctions (at the relatively granular Census Block level).

Wheeler calls the approach they are taking a bit nouveau and suggests that it is by design as he points out that regulators will have to think anew if they are going to keep up with spectrum demands. Commissioner O’Reilly said this about the proposal,

“To this end, the 3.5 GHz Band will be one big experiment in terms of the proposed sharing design and licensing scheme. We place a lot of trust that this novel effort will be successful. But, if it does not meet expectations, we are not precluded from altering it in the future.”

This last statement by O’Reilly captures the essence of the urgency that Wheeler wants to bring to the agency. Wheeler’s sentiments were captured in this interview from the recent ACA Summit.

[Note, the following link provides more detailed information from the December 2012 NPRM on this topic.

http://www.fcc.gov/document/enabling-innovative-small-cell-use-35-ghz-band-nprm-order]