The FCC’s Jan. 2014 spectrum auctions promise dual impact on transportation

With its mobile labor force, the transportation industry uses cellular data for everything from asset management, to route optimization, to safety tools like lane departure and proximity warning systems.  Autonomous vehicles, vehicle to vehicle, and vehicle to infrastructure communications insure that the demand for spectrum for transportation will continue to grow.  But with over 48 percent of cellular users now using smartphones, demands on broadband spectrum may compromise the speed and reliability of data on the road.

In January, the FCC will hold its first spectrum auction in five years, and the best-known wireless providers are all expected to be at the table. The limited amount of spectrum owned by each provider represents a ceiling on the growth of their data-driven plans and products, a frustrating reality given the high growth curve of consumer demand. With competition fierce, some providers have been lobbying the FCC to limit their larger counterparts’ participation, an outcome that could reduce auction revenues significantly.

Proceeds are earmarked to fund FirstNet, a proposed nationwide public safety network through which the enforcement community will be able to easily exchange data-heavy reports, photos, and videos across departmental and state lines. The system also promises to shorten response times in emergency situations, and could even involve some interfacing with private transportation companies. Built collaboratively, it could represent one of the best uses of spectrum yet.

Near-shoring: an important, if not urgent, trend

Decades ago, when the trend toward offshore manufacturing first took off, U.S.-based companies that didn’t adapt quickly enough were left behind, edged out of the marketplace by their own overhead.

And as controversial as it was, the trend seemed irreversible. Over the past few years, though, the advantages of outsourcing have been tempered by supply chain challenges including long lead times, increased international risk, and concerns about carbon emissions, fuel prices, and the rising cost of labor in Asia. 

All of these concerns have helped drive the emergence of near-shoring or bringing manufacturing closer to home. By leveraging the geographical proximity and cultural consonance of Latin American countries, as well as their affordable, skilled, and increasingly English-speaking work forces, companies are improving speed to market, and responsiveness to customers — while, once again, reducing costs.

And though the advantages are great and the trend important, it hasn’t caused companies to shut down their Asian operations en masse. Because in many ways, near-shoring isn’t just about proximity to the mother company; it’s also about proximity to the customer. And as Asia’s prominence wanes as an offshore manufacturing base, the region continues to gain importance … this time as a consumer base.  It is important that our expectations and our government policies reflect this new reality.