In  some frequency bands, FCC authorizes unlicensed use of spectrum  bands—generally referred to as unlicensed spectrum—that is, users do  not need to obtain a license to use spectrum. Selected Stakeholders Identified Spectrum Availability and Managing Interference as Challenges Affecting IoT Devices

Stakeholders representing IoT network providers, device manufacturers,  users, and federal regulators consistently identified two spectrum-related  challenges to the continued growth and development of IoT 1) ensuring  the availability of sufficient spectrum and 2) managing the harmful  interference from the increasing number of IoT devices. FCC  staff agreed that managing interference is becoming more challenging as  the number of wireless IoT devices grows. The Federal Government Has Plans to Meet Spectrum Needs but Does Not Track IoT Devices That Could Cause Congestion

		FCC Spectrum Planning

To plan for spectrum needs, FCC has repurposed spectrum by making  additional spectrum available for commercial purposes and, according to  FCC officials, the agency is continuing to look for additional opportunities  to do so. As shown in table 2, these studies touch on a number of areas  related to IoT including interference issues and spectrum use. Tracking IoT’s Growth

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. Rapid growth in high-bandwidth and unlicensed spectrum devices  represent risks to FCC achieving its goal of promoting economic growth  by ensuring that sufficient spectrum is available. High-bandwidth devices: Some stakeholders we interviewed and FCC  officials said that rapid increases in high-bandwidth IoT devices could  overwhelm current wireless networks. The TAC recommended that FCC  monitor IoT wireless networks with a specific focus on high-bandwidth  devices. In 2014, the TAC 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. According to officials and telecommunications  industry stakeholders in these countries, LPWANs offer several potential  benefits including low barriers to entry, low costs, and broad coverage. Unlike the United States, officials from Germany and France told us that  they directly monitor spectrum congestion. However, FCC noted that it would task the Technological Advisory  Council (TAC) to periodically review the state of the IoT ecosystem to  ensure that the planned communications infrastructure is sufficient to  support the needs of the growing sector and advise on any actions the  FCC should take. FCC did not concur with our recommendation to track IoT devices that  rely on unlicensed spectrum. In  this report we discuss: (1) the spectrum-related challenges stakeholders  identified due to the anticipated growth of IoT, (2) steps FCC and NTIA  are taking to plan for the anticipated growth in the demand for spectrum  as a result of IoT, and (3) efforts that selected leading countries are  undertaking to plan for IoT’s spectrum needs and ways that these efforts  compare with those of the United States. To identify the spectrum-related challenges stemming from the expected  growth of IoT, we reviewed documents from the Federal Communications  Commission (FCC) and the National Telecommunications and  Information Administration (NTIA), the two federal agencies that have  direct authority over spectrum planning. We  selected four of these countries—France, Germany, the Netherlands, and  South Korea—as being like the United States and leaders in IoT  development based on additional criteria including the level of their  economic development, the maturity of their telecommunications  infrastructures, the comparability of their governments to the United  States, and the accessibility of their spectrum-planning information.
Why GAO Did This Study

IoT generally refers to devices (or “things”), such as vehicles and appliances, that use a network to communicate and share data with each other. The increasing popularity of wireless IoT devices that use spectrum has created questions about spectrum needs. GAO was asked to examine issues related to spectrum and IoT. This report discusses, among other things, (1) spectrum challenges related to IoT, (2) how the federal government plans for IoT’s spectrum needs, and (3) how selected leading countries prepare for IoT’s spectrum needs.
GAO reviewed documents and interviewed officials from FCC and the National Telecommunications and Information Administration as well as 24 officials from a variety of sectors, including government, commercial, and manufacturing. Stakeholders were selected based on a literature review, among other factors. GAO interviewed government and commercial representatives from four leading countries regarding IoT planning and development and reviewed associated documents. These countries were selected based on criteria that included level of economic development among other criteria.

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.
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.

What GAO Recommends

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.