Most Carriers Seen Having Little Interest in 2.5 GHz Band Despite FCC Push
Few carriers are likely to pursue the 2.5 GHz band, despite an NPRM teed up for a vote at Thursday’s FCC commissioners’ meeting, industry analysts and former FCC officials said. The record in docket 18-120 documents the lack of interest so far, with Sprint the only wireless industry company to weigh in.
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FCC Chairman Ajit Pai listed the NPRM as his top item in a blog post last month announcing the agenda for the meeting (see 1804180068). “We haven’t granted new access to the entire 114 MHz of spectrum in this band for over 20 years,” he said at the time. “In other words, a scarce public resource that could be used to connect millions of Americans for a long time hasn’t been put to the best use, if it’s even been used at all.”
Sprint has been the dominant player in the 2.5 GHz band, which the company has said is key to its rollout of 5G. A carrier official said his company is looking at possibilities in the band, but isn’t sure they exist. A small-carrier official said the interest likely varies from company to company. The major carrier associations declined to comment. The FCC didn't comment.
“The 2.5 GHz band may suffer from the same problem as the millimeter-wave auction planned for November,” said Craig Moffett of MoffettNathanson. “There’s just not all that much of it left, and what is left is so chopped up that it just isn’t all that interesting. It helps that there is an ecosystem developing in Asia, but there are a lot of new spectrum bands coming to market. Ultimately, all these new bands are competing for the same limited pool of capital.”
The NPRM appears to offer a solution “that primarily if not solely benefits Sprint,” said Walter Piecyk, analyst at BTIG. “I doubt that any other large operators would pursue this spectrum.”
Roger Entner of Recon Analytics said 5G is fundamentally a broadband technology. “The broader the band, that is the more spectrum, the more efficient it works,” he said. "Sprint has a great advantage of having ... contiguous spectrum there. Doling out small frequency bands of 10 or 20 MHz is still welcome, but makes less and less sense in the global race to 5G to deliver the fastest possible speeds.”
Sprint Executive Chairman Marcelo Claure emphasized the importance of the band in a Wednesday financial call. “Sprint is the only carrier that doesn't have to compromise what 5G can deliver because we can utilize the super wide channels of more than 100 MHz while still delivering mid-band coverage characteristics,” he said. With more than 160 MHz of 2.5 GHz spectrum in the top 100 U.S. markets, “this gives Sprint the largest nationwide block of sub 6 GHz 5G spectrum available,” he said.
In an April 27 filing, Sprint reported on meetings with aides to Pai and to Commissioners Mike O’Rielly, Brendan Carr and Jessica Rosenworcel. Sprint said the public “will greatly benefit” from expanding opportunities for existing and potential new licensees in the band.