The thread that binds technology

This is the week each year that present-day Las Vegas, annual host of the International Consumer Electronics Show, becomes home to the future. CES features the largest, global hands-on showcase of emerging innovation — all aspects of technology are here.

This year’s CES makes it clearer than ever that our tech future will be a connected one, fueled by radio frequency known as “unlicensed spectrum.”

A survey of the CES show floor confirms our growing demand for products and services connected to the “Internet of Things.” From smart homes and unmanned systems to streaming content and wearables, many of today’s consumer technology innovations are mobile-first, connected to the Web and connected to one another. Spectrum is the invisible thread that binds these technologies, making them smart, allowing us to use them anywhere, anytime.

But spectrum is a limited resource, and we’re already running low. We need to make sure we don’t run out.

In 2013, more than 337 million Wi-Fi-enabled devices — products that rely on spectrum to carry data signals and power our connectivity — were sold in the United States, research from the Consumer Electronics Association shows. By 2018, that figure is expected grow to more than 416 million devices. And our in-home demand for spectrum is climbing, too, as TV “cord-cutting” becomes more popular. This year, for the first time, the number of U.S. households using their TVs exclusively to stream content could well surpass the number of TVs still relying only on antennas.

Last year, we were able to put an objective value on this fuel for innovation and its effect on the U.S. economy. CEA estimates unlicensed spectrum generates $62 billion per year in incremental retail sales value — a conservative estimate based on only the value of a device attributable to unlicensed spectrum.

Throughout CES, more products than ever demand spectrum. Drones rely on spectrum to communicate with piloting systems; health and fitness monitors need spectrum to transmit biometric data; and our tablets and smartphones need spectrum to stream content. Until we allocate more licensed and unlicensed spectrum to mobile broadband, network congestion will continue to grow and we’ll all feel the effects of slower service, higher service costs and an overarching chill on innovation.

The Federal Communications Commission recognizes the need for more spectrum and has taken steps to free unused spectrum bands through a series of successful spectrum auctions. These auctions are an efficient way to leverage idle spectrum by auctioning licenses for swaths of spectrum controlled but no longer used by the broadcasting industry. Thirty years ago, more than half of U.S. households with a TV relied solely on free, over-the-air broadcasting. Today, only 6 percent of American households still watch TV programming this way, which means a great deal of spectrum can now be better used for connectivity.

To date, the spectrum auctions have been incredibly effective. The FCC’s AWS-3 auction, launched in November 2013, already has accrued more than $44 billion from telecom companies, satellite TV providers and others — considerably more than the $10 billion reserve price set by the FCC — a win-win for stakeholders and broadcasters. Wireless and satellite companies can offer consumers faster and better services and broadcasters recover the costs associated with relocation or sharing and get added financial and operational benefits.

Broadcasters, however, tend to view spectrum as a turf war rather than a shared resource. In response to the incentive-based spectrum auction scheduled for 2015, the National Association of Broadcasters filed a lawsuit challenging the auction. This is especially short-sighted, since the continuing licensed spectrum auctions and collaboration between the government and the private sector benefit both sides, as well as consumers. More available spectrum means tens of billions of dollars in auction fees and a huge boost to the U.S. economy.

The 2015 CES reflects and drives the magic, wonder, energy and promise of consumer technology. And it’s more apparent than ever that the technology of tomorrow we will eventually come to rely on both in our homes and on the go needs unlicensed spectrum. Increasing the amount of available spectrum — the fuel for our nation’s innovation economy — is essential for us to ensure that the promise of technology we see this week will indeed become our reality tomorrow.

Gary Shapiro is president and CEO of the Consumer Electronics Association.