The Most Undervalued Asset In Critical Infrastructure
Spectrum licenses are increasingly viewed as critical infrastructure assets rather than mere communications inputs, with tens of billions of dollars in transactions reflecting their strategic value.
Spectrum is no longer simply a communications input but a strategic infrastructure asset that shapes resilience, operational control and long-term flexibility for organizations.
The value of spectrum is determined by what it enables, such as the ability to detect a power line break and de-energize it in about a second, preventing a wildfire.
Christopher Guttman-McCabe, who leads Anterix’s regulatory and spectrum agenda, argues that the focus on spectrum should shift from what it costs to what it enables.
Spectrum's Unique Properties
Spectrum is not a fungible commodity where a megahertz is a megahertz, as low-band spectrum below 1 GHz offers distinct advantages that cannot be replicated.
Low-band signals travel farther and penetrate buildings, foliage and other obstacles more effectively than higher-frequency spectrum, which is crucial for large geographic coverage.
This scarcity means that once high-quality low-band spectrum is acquired, creating more with the same characteristics is not an option, making it a permanent asset.
Anterix and Lynk Global are testing satellite direct-to-device service on their 900 MHz spectrum under an FCC experimental license, demonstrating the versatility of low-band spectrum.
Utilities like Ameren have been using 900 MHz to connect more devices and automate the grid since 2020, showcasing the practical value of this spectrum.
Diverse Buyers And Strategic Value
The buyers of spectrum are diverse, including satellite companies viewing terrestrial spectrum as part of a broader connectivity architecture and critical infrastructure operators valuing control over their networks.
A spectrum auction tells you what the market was willing to pay under a particular set of circumstances, while a strategic acquisition can tell you something different about its value.
For an infrastructure operator, the value of spectrum may have very little to do with whether it could be sold tomorrow and is reflected in what the network enables every day.
Owning spectrum determines how much control an organization has over its own communications and, increasingly, over its own operations.
The Value Of Optionality
Spectrum provides optionality, allowing organizations to build a network today while preserving flexibility around how that network evolves tomorrow, such as using satellite connectivity as an additional layer of coverage.
Unlike physical assets that depreciate as they age, spectrum does not wear out and its usefulness can increase as more devices, applications and technologies depend on connectivity.
Demand for spectrum is expanding across terrestrial wireless, satellite and critical infrastructure, while the supply of high-quality low-band spectrum remains limited.
For organizations that depend on spectrum, value is measured not by what it can be sold for but by what it enables, a fundamental shift in how this asset is understood.
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