This battle over wireless spectrum means getting a signal in more places (FAQ) - CNET

Spectrum is the range of radio frequencies used to transmit sound, data and video to TVs or smartphones. These are the airwaves that ignited Beatlemania in December 1963 when radio stations began playing the hit song, "I Want to Hold your Hand," and that can deliver "Game of Thrones" to your phone via the HBO Go app.

More spectrum means faster and more-reliable wireless service. Spectrum is a limited resource controlled, for the most part, by the US govement. Companies can get their hands on it if they participate in auctions, acquire a company with spectrum holdings or buy licenses from one another in the secondary market. More spectrum is necessary to handle the ever increasing amount of data traffic we're consuming and sharing over phones, tablets, cars, and other gadgets and machines.

Why is this particular spectrum so important?

The 600MHz band, which is the spectrum that will be made available in this auction, has traditionally been used to transmit TV signals. It's likely the last time the govement will be able to auction off such spectrum.

Low-band spectrum works reliably indoors and across great distances, and it can help the carriers keep up with ever-increasing customer demands for coverage.

AT&T and Verizon, which were the big wiers in 2008 in the last auction of low-band spectrum, have built the foundation of their 4G LTE networks on low-band 700MHz spectrum, another sliver of spectrum that was once used to broadcast TV.

T-Mobile, the nation's third largest wireless provider, has been trying to assemble a similar set of assets for its own network. But for the most part, it lacks significant amounts of low-band spectrum.

(You can check out a full explanation of wireless spectrum here.)

What's different about this auction?

The so-called Incentive Auction is really two auctions in one. There's a reverse auction that will allow TV broadcasters to sell their airwaves back to the govement. That process will start today. A forward auction will follow in a few months, through which the govement will sell those same airwaves to wireless companies. In exchange for giving up their spectrum, broadcasters will get a cut of the proceeds.

This auction will be the biggest and most complicated auction the FCC has ever run.

How much money could this auction raise for the govement?

Estimates suggest the auction could generate as much as $60 billion, but many in the industry feel that price is not realistic, given carriers' constrained budgets. The 700MHz auction eight years ago raised $19.6 billion. Last year's AWS-3 auction raked in a record-setting $45 billion.

Who are the major players in this auction?

Verizon, AT&T and T-Mobile are likely to buy the bulk of available spectrum in this auction. Because the FCC recognizes how critical low-band spectrum is in creating a company that could rival AT&T and Verizon, the agency carved out a sliver especially for smaller players like T-Mobile and some rural operators to bid on without facing the deep pockets of AT&T and Verizon.

Another wild card in this auction is Dish, which has been steadily building up a war chest of spectrum. The company was aggressive in the 2014 auction, emerging as one of the top bidders, spending around $10 billion.

It's unclear what Dish will do with the spectrum it already owns and the licenses it will likely pick up in this auction. It is possible the company will look for a partner or will create a fixed wireless service that serves as an alteate broadband coection to DSL or cable.

Comcast also plans to bid in the auction, providing a competitor in the auction to T-Mobile for spectrum set aside for smaller operators. Comcast has built an extensive wireless network using Wi-Fi technology and may eventually partner with a cellular operator to build a network to compete with traditional wireless carriers. It has kept mum on how it plans to use the spectrum. It could also use the licenses to build its own network, but it's more likely Comcast will use the licenses as a bargaining chip when dealing with traditional carriers.Notably missing from the auction is fourth-ranked carrier Sprint.

How will the outcome of this auction affect me?

Depending on how the auction shakes out, T-Mobile could end up a big wier. For the average consumer, that means T-Mobile could be a stronger alteative to AT&T and Verizon. T-Mobile has traditionally had weak signals outside major cities, but the spectrum from this auction will help it cover more regions of the US, especially in the suburbs and rural areas.

When will I actually see these changes?

It could be several years before the spectrum is ready for carriers to use. The auction itself is complicated and could take at least five or six months to complete, with some estimates saying it will drag into 2017.

Because the whole thing hinges on how many broadcasters are willing to participate in the first part of the auction, it's hard to say how much spectrum will be freed up for carriers to bid on.