Smart Living Ecosystems Brace for Yet Another Threat to Valuable Spectrum Resources

In July 2026, the Federal Communications Commission (FCC) announced that it was setting its sights to seek out more than 200 Megahertz (MHz) of unlicensed spectrum for unlicensed Direct-to-Device (D2D) services. As covered in this ABI Insight, “The D2D Demand Boom: Can Regulators, Satellite Network Providers, and Mobile Network Operators Keep Up?”, this move is designed to benefit unlicensed wireless devices such as laptops, smartphones, and Internet of Things (IoT) devices that already rely heavily on unlicensed technologies such as Wi-Fi and Bluetooth®. FCC Charmain Brendan Carr believes this approach will fuel a wave of new devices and applications without the burden and cost of obtaining a spectrum license. According to the draft order, this regulatory shift is a response to the massive interest and surge in investments in D2D communication services, which demonstrated the need for more spectrum to support the increased demand. The unlicensed spectrum under consideration are the 2.4 Gigahertz (GHz) and 5.8 GHz frequency bands. While the 900 MHz frequency band was initially considered, it was later removed from the Notice of Proposed Rulemaking (NPRM) document, with the FCC citing high complexity and heavy incumbent use in this band.

Competition for spectrum use in the unlicensed bands continues to heat up. Currently, smart home protocols, such as Zigbee, Thread, Z-Wave, Wi-Fi, and Amazon Sidewalk, utilize unlicensed spectrum in the 900 MHz, 2.4 GHz, and 5 GHz to support connectivity. The extent of these networks is great, with ABI Research estimating that there are over 5 billion active smart home devices in operation today. While the majority of these deployments are indoors, there is also considerable interest among smart home vendors in extending connectivity outside the home to support applications, such as outdoor surveillance and access control. Given the above, the latest FCC proposal to allow D2D services on the license-free Industrial, Scientific, and Medical (ISM) frequency bands is expected to have an impact on these connectivity protocols, especially for outdoor scenarios.

However, it should be noted that competition for spectrum use in these unlicensed bands is not new. As previously covered in this ABI Insight, “Z-Wave’s Long Range Technology Gains Momentum as Competition for Sub-GHz Spectrum Intensifies,” the FCC is also considering the proposal put forward by NextNav to utilize the 902 – 928 MHz band for licensed 5G-based, next-generation Positioning, Navigation, and Timing (PNT) applications.

Given these events, it is critical, now more than ever, for smart home connectivity protocol organizations to ramp up the adoption of long range-compatible devices quickly to put forward a compelling argument that unlicensed bands should be reserved for unlicensed use.

Given the above developments, it is crucial that the smart home industry takes proactive steps to protect and provide assurance to device manufacturers and end users. Some recommended actions include the following:

• Proactive engagement with the relevant authorities to conduct a financial assessment of these regulatory changes. To this end, accurate data collection, analysis, and presentation will be needed to highlight the financial impact on both device manufacturers and end users.
• Proactive interference tests to understand the impact that D2D and/or 5G-based PNT applications could have on existing smart home networks. Definitive evidence of spectrum interference would form compelling arguments that safeguards should be included in these new regulations to protect incumbent services.
• Proactive technical studies should be conducted to help authorities define the scope and details of the new regulation. These tests will be critical to study the necessary parameters (e.g., power output, spectrum bandwidth, etc.) to ensure interoperability and co-existence between the existing smart home protocols and the newly introduced D2D and PNT services.

The smart home industry is evolving quickly, with ABI Research forecasting growth of smart home device shipments to be 1.4 billion annually (at a Compound Annual Growth Rate (CAGR) of 6.3% between 2026 and 2030). However, competition for spectrum has appeared and continues to be a potential stumbling block that may impede the ambitions of smart home connectivity technology to extend beyond the indoor boundaries of the home. Hence, it is critical that smart home vendors ramp up adoption of smart home technologies to cement their solutions as critical components of the national infrastructure.