FCC's Queries on Dish IoT Buildout Plans Seen Signaling Agency Skepticism
Dish Network is facing increasing pressure from the FCC to build out its extensive spectrum holdings, with accelerated deadlines looming after missed initial deadlines. In a letter to Dish released Monday evening, Donald Stockdale, Wireless Bureau chief, noted meetings Dish has had, including between Chairman Ajit Pai and Dish Chairman Charlie Ergen. Stockdale asked about the company's next steps.
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Former officials said the agency, from bureaus to the chairman’s office, has long been skeptical of Dish’s deployment plans and the letter must be read as a signal the FCC will give little leeway and is ready to cancel the licenses if the satellite operator misses more deadlines. Other industry officials said the questions are ones to be expected from the agency and reflect in part that narrowband IoT networks like the one proposed by Dish are new in the U.S., though more common in Europe and China. Dish said in May that deployment of the IoT network will start by the end of the year using its flexible use licenses (see 1805290030). The company filed its second buildout report in June.
“I think the FCC is taking this deadline very seriously and could well revoke the licenses,” said satellite analyst Tim Farrar. “All of this is a sign that the FCC is fed up with Ergen simply sitting on spectrum. It’s now time to put up or shut up. He either has to move forward with a phase 2 network and commit billions of dollars, or sell the spectrum.”
“We appreciated the opportunity to discuss with the FCC our progress to meet the buildout milestones by March 2020,” a Dish spokesperson said. “Our phase 1 NB-IoT network will fulfill a growing demand for device connectivity in the near term, and serve as a bridge to Dish’s second phase, a complete 5G network. As requested, we will continue to update the FCC about the progress.”
“Please describe the service DISH intends to provide with respect to each spectrum band that has an upcoming construction deadline,” Stockdale wrote. “Do you intend to include other licensed bands in the phase 1 deployment? If not, why?” Stockdale asks about the architecture of the network Dish is constructing for its phase 1 build “including how base stations, repeaters, and end-user devices will interact” and “the IOT services/applications it plans to provide.”
The satellites firm has announced plans for an NB-IoT network using its AWS-4 and 700 MHz E block, and H block licenses, with other spectrum to come into play in phase 2 (see 1703080026). “When you previously stated that you expect to deploy by March 2020, did you mean that network coverage and equipment would be available to customers as of that date?” Stockdale asks. “Do you expect to be marketing and providing service to customers in each licensed area as of that date? How do you intend to market the service to customers in each licensed area?”
Farrar said the toughest questions probe the amount of bandwidth the company will require for the new network since a narrow-band IoT network could be expected to use only a 2000 kHz channel at the edge of the band. An industry official said the buildout requirement doesn’t come with any loading mandates.
Dish is ready to meet FCC requirements with an IoT network, BTIG analyst Walter Piecyk told us. ​“Dish has every intention to meet their buildout requirements,” he said. “I hardly think that Dish needs a letter to remind them of their buildout requirements, especially after recently meeting with Chairman Pai. Everyone seems to be focused on 5G but the 5G standards are not ready and there is nothing in the buildout requirements that specify the type of technology that should be used on the licensed spectrum, a hallmark of U.S. regulation."
“IoT offers a broad opportunity for wireless industry growth, and the characteristics of NB-IoT technology in particular will offer distinct advantages in, among other things, lower power consumption of user devices and the ability to support many more devices per individual tower compared to 4G/LTE broadband,” Dish said in a recent filing in docket 17-183.