Published in the summer 2010 issue of MyLIFE magazine
We’ve all experienced it before—the arrival of the dreaded cell phone bill, as thick as a phone book, wrapped ominously in a large envelope. Whether the charges are the result of excessive text messages or Web usage, the common denominator is the bandwidth used to make many of our smartphones function. Simply put, our growing demand for bandwidth is causing an increasing shortage, which in turn increases the rate cell phone companies charge for services such as streaming video. Communications experts see this shortage as an impending crisis thanks to the public’s increasing appetite for smartphones. So, what does this mean for consumers and cell phone providers? For companies like Verizon, Sprint and AT&T, the biggest challenge will be to upgrade the infrastructure and invest in developing ways to expand from 3G to 4G coverage to keep up with consumer demand.
For average bandwidth users, this predicament presents a unique opportunity.
Companies like SmartComm aid the average consumer in purchasing a license from the Federal Communications Commission (FCC). According to SmartComm’s CEO, Carole Downs, this will be a viable option in the future of the industry. “Wireless spectrum is something foreign to most people. So, when we realized that we had something we could offer folks, we didn’t want them to just say ‘that sounds good’ and write a check … because there’s an obligation after you get your license. And that is to construct it, operate it. You become a small-business owner, in other words,” she explained.
For those who are interested in obtaining an FCC license, the outcome could be lucrative; the value of these licenses is increasing astronomically because of the growing demand for the spectrum supporting all of the wireless devices. “We found a niche that wasn’t being offered to the general public,” Downs said. “Most people didn’t know that individuals could own an FCC license.”
SmartComm has put together Webinars and seminars to present and explain this opportunity to interested individuals. The Webinars also help to connect the license holders with each other so they can collaborate and build an infrastructure. To some, obtaining a personal FCC license may seem daunting, but Downs said it’s not that different from other business ventures. She noted that SmartComm encourages its clients to hold on to their license and to build it out, “because the income is forever.”
Downs recounted a particular success story. “We have clients over in California who, through a lottery, won a license … and it’s one of the examples we use, because they are still getting a check today, after 20 years. They’re still all getting an annual check for around $175,000 each, for a very small percentage of ownership that they have. Because they retained their license, they receive a check from that carrier every year. How much did they invest initially? About $700.” This may seem too good to be true to some, but Downs offered some advice. “You have to be patient. You have to be prepared to spend the money to build it out. That cost may be anywhere from $5,000 to $10,000. So, you want to have those funds set aside. And that’s why we take the time to really educate people, because it really is a small business opportunity.”
It is unlikely that our appetite for bandwidth will abate anytime soon, but now that the FCC has created the next big technology gold rush, literally out of thin air, it’s a business opportunity worth exploring.
For more information about SmartComm, visit .
