Pai to Propose Additional High-Frequency Bands for 5G by Year-End

The FCC is moving forward on rules that will make it easier to site small cells and other wireless facilities, Pai said. “We’ve heard loud and clear from you how state, and local and tribal processes affect the speed and cost of infrastructure deployment,” he said. The rules for 200-foot macro towers “shouldn’t necessarily apply to a small or small-cell or distributed antenna system or other small infrastructure,” he said.

For CTIA President Meredith Baker, the message was friendlier than that delivered by Tom Wheeler at CTIA’s annual show three years earlier, when the then-chairman signaled that pending net neutrality rules would treat wireless mostly the same as wireline (see 1409110030). Baker worked for Wheeler when he headed CTIA. The FCC needs to allocate more spectrum for wireless broadband, Baker said. “To keep up with Americans’ growing demand, we are going to need ... hundreds of megahertz more spectrum,” she said. Baker urged the FCC to release a schedule of when new spectrum bands will be auctioned.

Streamlined siting rules are also critical, Baker said. The U.S. wireless industry has built about 150,000 towers since it got started, but will need to add about 300,000 small cells in the next few years, she said. Twelve states have approved small-cell siting bills and the FCC needs to focus on deployment in the other 38, she said. NATOA's conference heard much on this subject (see 1709120001).

Pai noted based on “initial estimates,” the $1.75 billion broadcaster relocation fund won’t cover eligible costs for moving broadcasters following the TV incentive auction. “Congress is examining ways to prevent stations from paying out of their own pocket while also ensuring that 600 MHz winners are able to use that spectrum promptly,” he said. “I share these goals and remain committed to working with broadcasters, with you and with Congress to achieve them.” The FCC later released the speech text.

The mobile competition report, circulated last week (see 1709070056), was full of good news on wireless competition, Pai said. Consumer demand “continues to rise” as do smartphone penetration and data demand, while prices are under pressure, he said. “In the past year, U.S. consumers also benefited from a dramatic expansion in options of nationwide wireless plans offering unlimited data.”

Pai said there's a note of concern: Only 55 percent of rural Americans can choose from four LTE providers and about 3 percent of U.S. road miles and 20 percent of square miles have no wireless coverage. “The mobile marketplace is healthy, but we’ve got work to do to close the digital divide and boost network investment, which go hand in hand,” he said.

Pai spoke of the importance of the Mobility Fund II, which allocates $4.53 billion over 10 years on wireless deployment in markets without LTE. “We’re spending that money over the next decade in an efficient, fiscally responsible way by using a competitive reverse auction to allocate these funds to private providers,” he said. The FCC is also cutting red tape so carriers are more willing to invest, he said. “The more difficult government makes the business case for deployment, the less likely it is that broadband providers, big and small, will invest the billions of dollars needed to connect consumers,” he said.

Pai urged the wireless industry to educate consumers on the benefits of new wireless technology and the need for more infrastructure and backhaul. “Building support on a local and state and even national level for the construction of those networks is something that the industry would be squarely positioned to do,” he said. “The regulatory process here has to appreciate the scale that we’re talking about."

Baker said this is a critical period for the U.S. wireless industry. “The race to lead the world in 5G is on and the competition is intense,” she said. “China will conduct over 100 trials this year. South Korea and Japan, they’re moving forward on the 5G Olympic commitments.”

Other countries are moving “because they want to win,” Baker said. “We do, too.” The U.S knows what to do because it won the race to 4G, she said. “The playbook isn’t complicated,” Baker said. “Billions [of dollars] invested and innovation, fostered by smart government policies.” Because the U.S. has been the leader, 75 percent of the world’s app companies are based in the U.S., she said.

MWC Notebooks

Five billion people worldwide are connected to mobile networks, or two-thirds of the world’s population, GSMA reported Tuesday. It warns that growth is slowing: “It took four years to move from 4 billion to 5 billion subscribers and connecting the next billion will take longer still. Meanwhile, smartphone and mobile broadband penetration growth is driving mobile internet usage and engagement, and new form factors are emerging beyond the smartphone.” Much of the focus is on 5G, but 4G “still has plenty of headroom for future growth,” GSMA said. South Korea and Japan are likely to be among the first 5G markets, “showcasing the technology at the Olympics in 2018 and 2020, respectively,” the report said. “On a global basis, it’s expected that 5G networks will be rolled out at a slower rate than 4G and adoption is therefore also likely to be slower.” GSMA said networks must evolve to support 5G and the IoT, “requiring the creation of decentralised networks that combine a number of network technologies.”

Carlos Slim, CEO of América Móvil, said in a keynote address that 50 percent of the mobile phones in Latin America today are smartphones, and smartphones make up 80 percent of device adds. “We’re transitioning to 5G,” he said. Prices for service will continue to decline in the region, but data traffic will grow and consumers will have more access to content and apps, he said. “Smartphones are the means to access this digital era,” he said. “They are also becoming our office, our wallet, our entertainment center and a key tool to improve education, health and many other services.” Slim raised concerns about the global digital divide, saying 2 billion people in the world likely still won't be connected by 2020. “A major concentrated effort needs to be done to address this unacceptable digital persisting exclusion,” he said.

Net neutrality advocates plan a rally Tuesday protesting Pai's Bay Area appearances, which include a Lincoln Network event in the evening, said an Electronic Frontier Foundation blog Monday. Pai's visit is "supposedly for a 'fireside chat' with tech executives about bridging the digital divide for underserved communities," but his tenure so far "has been defined by actions that undermine digital rights, such as seeking to rescind the Open Internet Order of 2015 that protects net neutrality," EFF wrote. "Outside the location at which he’ll meet with tech executives, EFF and a number of allied organizations (including the Center for Media Justice, ACLU of Northern California, The Greenlining Institute, CREDO, 18 Million Rising, the Media Alliance, Tech Workers Coalition, and more) will host a rally."