Wireless Carriers Facing Major Problem as Airwaves Are Nearing Capacity

Dropped phone calls, delayed messages and slow video streams are becoming more of a problem for wireless carriers. This is a result of the airwaves that the data travels on, known as spectrum, are nearing capacity. With mobile usage showing no signs of slowing this has become a major problem for companies in the industry.

According to a regulatory filing by Verizon wireless the company is currently having spectrum shortages in certain markets. Rival carrier AT&T had sought to acquire T-Mobile to help with their spectrum shortages, but withdrew the offer after the federal government sued to block the deal.

"It really is a big deal," said Nancee Ruzicka, Denver-based director of strategy for market research firm Stratecast. "No matter what you're willing to pay or what you're willing to do, it's almost going to become that gridlock situation where this is all there is. It's a physics issue. There's only so much spectrum."

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