The decision initially covers only one product, and is limited to the pilot city of Wilmington, N.C.

But backers of the technology hope those white spaces prove as big a boost to innovation as the unlicensed spectrum that gave birth to Wi-Fi.

“We see this as a multibillion-dollar industry,” said Rod Dir, CEO of Spectrum Bridge, the company whose database is a key component of the white spaces system approved by the FCC.

White spaces, for the uninitiated, are the spectrum spots in between TV channels. Like the 2.4GHZ spectrum used by several flavors of Wi-Fi, the white spaces are unlicensed spectrum, meaning any device that agrees to play nice with others and gains regulatory approval can operate in the frequency. Devices that are approved to operate in the white spaces spectrum are required to check in with a database to see which channels are available. (For more, check out AllThingsD’s handy FAQ post from last week.)

Over time, analysts imagine a range of wireless and wired devices that can use the white spaces as a sort of “Super Wi-Fi” that can operate over greater distance and perform better indoors.

For now, though, FCC approval is limited to fixed devices using a radio from one supplier, Koos Technical Services. Among the initial uses seen for white spaces are helping bring wireless internet to rural areas and municipal Wi-Fi to smaller cities.

While Wi-Fi often gets spotty after more than 100 meters, and signals often are stymied by walls, white-space signals can carry far further. They can go for several miles, albeit at slower speeds.

“The key element of that for us is the greater coverage that’s possible compared to other services,” said Bill Koos, president of KTS. The company has seen signals that can travel on average two to three miles via antennas that are no more than 30 or 40 feet high.

Some of the uses that have excited officials in Wilmington, Koos said, are the ability to monitor machines, offer wireless Internet access in public places, and even do some video surveillance. Although it doesn’t deliver the kind of speeds needed for, say, streaming Netflix, Koos said the signal is good enough for sending video security footage.

As the radio needed to access the white spaces is brought down to a single chip, the technology should find its way into other products, such as laptops, tablets and phones, perhaps by the middle of 2013. Because of its range and other advantages, Dir said, he expects cellular companies to eventually use the white spaces to handle data-intensive tasks when a signal is available.

“We believe the carrier will eventually migrate to TV white space for offload,” Dir said.

While that is certainly a possibility, wireless analyst Chetan Sharma expects to see the technology far sooner in devices other than cellphones, which are already crammed full of batteries that add cost and sap battery life. That said, the advantages of white spaces, especially its ability to work better indoors, make it a potentially attractive option to carriers struggling with heavy data demands and limited cellular spectrum.

“It remains to be seen,” Sharma said.

(Image credit: iStockphoto | gaiamoments)

Lest it remain a gray area to you, here are some answers to the most common questions:

What is this “white space,” anyway?

White space refers to the range of spectrum available in between the signals used by television stations. By allowing companies to build wireless devices in this area, the Federal Communications Commission is paving the way for new kinds of wireless devices.

What kinds of devices and services could run there?

Unlicensed spectrum opens the door to all kinds of uses, but the use most commonly talked about is to provide fixed and wireless broadband Internet services. It could also prove a good technology for moving video and other bulky data types around the home.

What advantage does white space technology have over today’s Wi-Fi?

Because the white space is in the lower frequencies, devices running in those frequencies could carry signals over longer distances and work better through walls and in other indoor environments.

Why hasn’t anyone used them before?

Although the FCC voted to go ahead with plans to allow devices in the white space as far back as 2008, it has taken until now to approve the first devices and address concerns about potential interference.

What are the concerns?

The biggest concerns have come from the TV industry, which had questions about interference with its signals and equipment; and from performers, broadcasters and others that use wireless microphones that operate in a similar frequency. Even Dolly Parton expressed some concerns early on.

How are these concerns being addressed?

The FCC is creating a way for those who are using wireless microphones to register them. Also, devices that want to access the white space range have to check in with a database to see what spaces are free in their particular area. In addition to approving the first device on Thursday, the FCC also approved the first such database.

“Interference issues won’t go away, but I think it is proven that the industry can use this kind of a model,” said wireless industry analyst Chetan Sharma.

How big a market could this be?

Microsoft, a big backer of opening up the spectrum, commissioned a study in 2009 that found that availability of white-space technology could increase just the Wi-Fi-like device market by $3.9 billion to $7.3 billion per year.

So, will this solve all of those worries about spectrum that Verizon and AT&T talk about?

Not directly. The White Space spectrum is unlicensed, meaning any approved device and service can run there. However, it could pave the way for phones and tablets to someday take advantage of white-space capacity on occasion, as is done with Wi-Fi today.

Sharma said to expect the first devices to use white spaces to be noncellular devices. By late 2012 or early the following year, though, we could start to see cellular phones and tablets that have the ability to use white-space services, where available. The big challenge there is it is yet another type of radio that would have to be built into phones — adding cost and complexity.

(Image credit: iStockphoto | gaiamoments)

Once again, AT&T (T) argues that coverage maps featured in Verizon’s (VZ) ad are misleading and falsely suggest that AT&T offers no coverage in areas where it actually does service.

“Contrary to the image presented in the Verizon ads, our wireless network is pervasive,” said an AT&T spokesman. “It covers over 300 million people, or 97 percent of the U.S. population. Our fastest, or 3G, network covers approximately 233 million people, or 75 percent of the U.S. population….[Verizon's] use of white space is misleading.”

While AT&T is deadly serious about this accusation, the fact that it must make it by referencing creatures like the Abominable Snow Monster and a pink spotted elephant makes it, well, hysterical.

“The ‘Island of Misfit Toys’ television advertisement is a parody of the ‘Rudolph the Red Nose Reindeer’ television special that depicts an island to which Rudolph travels after escaping an attack from the Abominable Snow Monster,” AT&T argues in its complaint. “The advertisement begins with outdated, discarded toys expressing surprise at the arrival of an Apple iPhone. The red Charlie-in-the-Box says ‘Hey! Check out the new guy!’ The spotted elephant, in a surprised manner, asks the iPhone ‘What are you doing here? You can download apps and browse the web!’ and a Dolly for Sue asserts that ‘Yeah. People will love you [the iPhone].’”

The complaint continues: “In response, a blue AT&T coverage map depicting large swaths of ‘white’ or ‘blank’ space across the United States appears above the iPhone. All the toys exclaim ‘Oh . . .’ in dismay, while the iPhone wilts and its screen turns dark. The toy airplane then assures the iPhone that ‘you’re going to fit right in here!’”

Finally, as AT&T describes it, “AT&T’s and Verizon’s coverage maps then appear and the announcer states, ‘with five times more 3G coverage than AT&T, Verizon Wireless is your destination for great gifts.’ The image of the sad and wilting iPhone on an island of misfit toys falsely communicates that the iPhone is a broken device because it cannot browse the web or download applications when outside of AT&T’s depicted coverage area. Further, the maps in the advertisement deceive consumers into believing that AT&T’s customers have no coverage whatsoever when they are outside of AT&T’s depicted coverage area and thus cannot use their wireless devices in many parts of the United States.”

Verizon’s attorneys are probably doubled over with laughter at this very moment.

Below, AT&T’s amended complaint in its entirety:

VerizonAmendComp _3_ –

The White Spaces Coalition, an alliance of companies developing a new wireless broadband service that taps into unused and unlicensed portions of the television spectrum known as white spaces, has
submitted another prototype device to the FCC for testing. Like its predecessor, this device (developed by Philips) is designed to demonstrate that white-space technology won’t muck up the airwaves for the telecom and cable companies who will almost certainly try to sandbag it on those very questionable grounds. “The telephone companies are terrified they’ll lose 40% of their wireless minutes, because you’ll be able to connect from work or home and bypass their wireless networks,” J.H. Snider, research director of the Wireless Future Program at the New America Foundation told MarketWatch recently. Which is funny, because the incumbent telecoms could have developed their own white-space technology if they’d wanted, they just didn’t bother because white spaces can’t be licensed in contiguous blocks, and apparently it’s far easier to add ridiculous modifiers to old technologies (Comcast PowerBoost!) than it is to develop new ones. Innovating is such a hassle.

Of course, now that the WSC–whose membership includes Google, Dell, EarthLink, H-P, Intel, Microsoft and Philips–is making its presence felt in Washington, it’s a different story. Anyway … the FCC plans to conclude its testing of the WSC’s white-space devices in July. If all goes as planned, and the incumbent telecoms don’t manage to undermine the effort, white-space broadband service could begin in the U.S. in February 2009.