What is the primary characteristic of licensed spectrum?

The primary characteristic of licensed spectrum is that it is reserved for specific commercial entities. This means that only organizations that have acquired the proper licenses are allowed to use this spectrum for their wireless communication needs. By requiring licenses, regulatory bodies ensure that the spectrum is managed in an orderly manner, avoiding interference between different users and allowing for more predictable performance.

This is in contrast to unlicensed spectrum, which is available for public use without fee or specific allocation, allowing anyone to operate devices within certain technical parameters. While Wi-Fi technologies operate in unlicensed bands, the licensed spectrum is typically utilized by mobile carriers and other companies that need dedicated bandwidth for services like cellular communications. This distinction highlights why licensed spectrum is valuable—it guarantees a level of exclusivity and reliability that is crucial for commercial entities in delivering their services.