Internet of Things: FCC Should Track Growth to Ensure Sufficient Spectrum Remains Available
Highlights
What GAO Found
The stakeholders GAO spoke with identified two primary spectrum-related challenges for the internet of things (IoT)—the availability of spectrum and managing interference. Although not considered an immediate concern, Federal Communications Commission (FCC) staff and some stakeholders noted that rapid increases in IoT devices that use large amounts of spectrum—called high-bandwidth devices—could quickly overwhelm networks, as happened with smart phones. Stakeholders and FCC staff also indicated that managing interference is becoming more challenging as the number of IoT and other wireless devices grows, particularly in bands that do not require a spectrum license. The figure below illustrates the uses of radio frequency spectrum, including unlicensed use.
Examples of Commercial Uses of Radio Frequency Spectrum in the United States
FCC plans for IoT’s spectrum needs by broadly tracking spectrum demand and making additional spectrum available as needed. Ensuring sufficient spectrum to support commercial demand is one way FCC pursues its strategic goal of promoting economic growth. FCC has made additional spectrum publicly available at least four times since 2015 by repurposing over 11 gigahertz of spectrum. However, FCC does not track the growth of IoT devices in two areas that pose the greatest risk to IoT’s growth—high bandwidth and unlicensed-spectrum devices. In 2014, FCC’s Technical Advisory Council (TAC) recommended that FCC monitor high-bandwidth IoT devices and make sufficient unlicensed spectrum available. FCC officials said that FCC monitors spectrum use broadly and makes spectrum available as needed. However, since the process of reallocating spectrum is lengthy, FCC may not have adequate time to take actions to avoid a shortage, possibly hindering IoT’s growth and associated economic growth.
Spectrum planners in four leading countries—France, Germany, the Netherlands, and South Korea—have taken steps similar to those taken by the United States in preparation for IoT’s expansion, including taking a technology-neutral approach that stakeholders believe encourages innovation. Unlike the United States, officials from two leading countries said they are concerned about spectrum congestion from the growth of IoT devices, but only one is actively monitoring congestion. In addition, three leading countries have developed nationwide low power wide-area networks that use unlicensed spectrum with potential benefits including low costs and low barriers to entry.
Why GAO Did This Study
Recommendations
FCC should track the growth in (1) high-bandwidth IoT devices and (2) IoT devices that rely on unlicensed spectrum. FCC did not believe these actions are necessary but noted that it would ask its TAC to periodically review and report on IoT’s growth. GAO continues to believe the recommendations are valid.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Federal Communications Commission | The Chairman of FCC should track the growth in high bandwidth IoT devices, such as video-streaming devices and optical sensors. (Recommendation 1) |
In 2018, we reported that FCC has a strategic goal of promoting economic growth, and one way FCC pursues that goal is by ensuring that there is sufficient spectrum to support commercial demand. However, rapid growth in high-bandwidth spectrum devices represent risks to FCC achieving its goal of promoting economic growth by ensuring that sufficient spectrum is available. FCC officials said that the agency tracks industry-produced trends and projections related to spectrum demand and use but does not focus on specific devices. Rather, it relies on network providers to manage and track the spectrum related to specific device types. When more spectrum is needed, FCC officials said that FCC identifies additional spectrum and makes it available to the commercial sector. Some stakeholders we interviewed and FCC officials said that rapid increases in high-bandwidth IoT devices could overwhelm current wireless networks. FCC officials said that the supply of spectrum has not always kept pace with demand caused by rapid increases in high-bandwidth devices. In 2014, the FCC Technical Advisory Committee (TAC) warned that new Internet of Things (IoT) applications could overwhelm networks the same way smartphones and other new technologies have in the past. The TAC recommended that FCC monitor IoT wireless networks with a specific focus on high-bandwidth devices. While FCC makes additional spectrum available when needed, it lacks an early warning system for high-risk sectors, like high-bandwidth-spectrum devices. Given the process of identifying and reallocating spectrum is a lengthy process that can take years, FCC may not have adequate time to take actions to avoid a shortage, possibly hindering growth in high bandwidth devices and associated economic growth. Therefore, we recommended that FCC track the growth in high bandwidth IoT devices. In 2022, we confirmed that FCC took sufficient action to address the intent of this recommendation. Specifically, FCC issued a report that summarized the comments it received during a 2021 Notice of Inquiry to seek information on whether adequate spectrum is available or is planned for allocation, for commercial wireless services that could support the growing IoT. FCC officials said that the notice sought comment on all types of IOT devices that could affect spectrum demand, including high-bandwidth devices. Commenters to the notice suggested that to further promote and propel the growth of IoT, steps should be taken to avoid stymieing the potential benefits of IoT. Commenters recommended various proposals, such as making more spectrum available for licensed use and for unlicensed operations, ensuring spectrum allocations retain flexible-use rules, and changing the FCC's secondary markets rules. Commenters emphasized that in the near-term, FCC should continue to make more spectrum available. Some commenters argued there is not adequate spectrum available to support the increased demand that IoT will impose on licensed commercial wireless spectrum. FCC's report identified that IoT is developing rapidly, and indicators point to exponential growth in the number of IoT devices and use cases. The report noted that adequate access to spectrum will be critical to supporting and propelling this growth. The report also indicated that spectrum that is made available either on an exclusively licensed, shared, or unlicensed basis will play a role in supporting the development and deployment of IoT networks. The report concluded that FCC's efforts to make additional spectrum available, protect incumbent users from harmful interference, and promote new, innovative uses of spectrum would continue. With the knowledge gained from this Notice of Inquiry and the associate report, FCC is better positioned to ensure that sufficient spectrum remains available to support the growth of loT, which includes high-bandwidth devices.
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| Federal Communications Commission | The Chairman of FCC should track the growth in IoT devices relying on unlicensed spectrum. (Recommendation 2) |
The increasing popularity of wireless Internet of Things (IoT) devices that use spectrum has created questions about spectrum needs. In 2018, we reported that FCC has a strategic goal of promoting economic growth, and one way FCC pursues that goal is by ensuring that there is sufficient spectrum to support commercial demand. However, rapid growth in unlicensed spectrum devices represent risks to FCC achieving its goal of promoting economic growth by ensuring that sufficient spectrum is available. FCC officials said that the agency tracks industry-produced trends and projections related to spectrum demand and use but does not focus on specific devices. Rather, it relies on network providers to manage and track the spectrum related to specific device types. When more spectrum is needed, FCC officials said that FCC identifies additional spectrum and makes it available to the commercial sector. For example, FCC has made additional spectrum publicly available at least four times from 2015 to 2018 by repurposing over 11 gigahertz of spectrum. Some stakeholders we interviewed said that unlicensed bands are particularly vulnerable to congestion and potential interference because of expected growth in IoT devices. For example, all the commercial, industrial, and personal devices that connect using WiFi and Bluetooth networks use unlicensed spectrum. In 2014, the FCC Technical Advisory Committee indicated that the majority of wireless IoT devices will rely on unlicensed spectrum and recommended FCC make sufficient unlicensed spectrum available for devices operating on local and personal area networks, like WiFi and Bluetooth. However, FCC may not have enough information to determine when the amount of unlicensed spectrum is sufficient. While FCC makes additional spectrum available when needed, it lacks an early warning system for a high-risk sector, like unlicensed-spectrum devices. Given the process of identifying and reallocating spectrum is a lengthy process that can take years, FCC may not have adequate time to take actions to avoid a shortage, possibly hindering the growth of unlicensed spectrum devices and associated economic growth. Therefore, we recommended that FCC track the growth in IoT devices relying on unlicensed spectrum. In 2022, we confirmed that FCC took sufficient action to address the intent of this recommendation. Specifically, FCC issued a report that summarized the comments it received during a 2021 Notice of Inquiry related to seek information on whether adequate licensed and unlicensed spectrum is available or is planned for allocation, for commercial wireless services that could support the growing IoT. The report noted that the record demonstrates the importance of unlicensed devices and operations to support the growth of IoT. Commenters to the notice suggested making additional unlicensed spectrum available for IoT. The expected growth in the number of unlicensed devices providing IoT connections prompted one commenter to suggest that the Commission prepare its Field Offices for possible detrimental effects on existing home communications devices. FCC's report found that IoT is developing rapidly, and indicators point to exponential growth in the number of IoT devices and use cases. The report continued to note that adequate access to spectrum will be critical to supporting and propelling this growth. The report also noted spectrum that is made available either on an exclusively licensed, shared, or unlicensed basis will play a role in supporting the development and deployment of IoT networks. The report concluded that FCC's efforts to make additional spectrum available, protect incumbent users from harmful interference, and promote new, innovative uses of spectrum will continue. With the knowledge gained from this Notice of Inquiry and the associate report, FCC has the information it needs to help ensure that sufficient unlicensed spectrum remains available to support demand promoting economic growth.
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