During a speech at the New America Foundation on the President’s Spectrum Initiative on June 28, National Economic Council director Lawrence Summers discussed President Obama’s four-point plan to increase the amount of federal and commercial spectrum available for smart phones and wireless Internet devices.

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“Opening up spectrum will create the foundation for new private sector investment and economic activity, in mobile broadband and a range of other high-value uses, that would not have been possible without the coordinating and organizing role of government,” Summers said.

According to the White House, the amount of data flowing over some wireless networks has increased by more than 250% per year. The government also expects traffic to increase by a factor of 20 to 45 times 2009 levels, reflecting the increased use of smart phones, netbooks, and other wireless devices. The four-point plan aims to alleviate the potential “spectrum crunch.”

First, the government will identify and plan for the release of 500 MHz of spectrum. Obama has directed the National Telecommunications and Information Administration (NTIA) and the Federal Communications Commission to (FCC) make this federal and non-federal spectrum available over the next 10 years for mobile and fixed wireless broadband use.

The NTIA and FCC already have initiated a fast-track process to determine whether any spectrum can be identified by Oct. 1, 2010, that could be made available within five years for exclusive or shared use. To that end, the federal government will create a publicly available inventory of the spectrum currently used by government and commercial users on a separate track from the NTIA and FCC processes to make spectrum available for new uses.

Second, the government plans on providing the tools needed to effectively reallocate spectrum. New tools and a commitment to using advanced technologies, the White House says, will enable government agencies to use spectrum more efficiently. Also, the government says, legislation is needed to allow the FCC to conduct “incentive auctions” that enable current spectrum holders to realize a portion of auction revenues if they voluntarily participate.

“By making spectrum available for auction, the administration will enable the wireless industry to invest billions of dollars to purchase the licensed spectrum, and billions more to build and upgrade the networks that fuel our ‘virtuous cycle’ of innovation,” said Steve Largent, president and CEO of CTIA—the Wireless Association. “This announcement is a win for all Americans as it will drive innovation, investment, and job creation.”

Third, the White House wants to enable spectrum to be put to its highest-value uses. Most of the spectrum freed up by the implementation of the first two steps of this plan will be auctioned off for licensed mobile broadband, though some will be made available for free for unlicensed use by technology startups, small businesses, and other innovative organizations. Additionally, the federal government will facilitate research and development that explores spectrum-sharing technologies.

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