Pai Hopes ‘Misguided Efforts’ to Stop T-Mobile/Sprint Fail

“Government officials trying to block this transaction are working to stop many upstate New Yorkers and other rural Americans from getting access to fast mobile broadband and all of the benefits,” said Pai. He agreed with ex-Commissioner Mignon Clyburn, who works with T-Mobile, who said the state attorneys general lawsuit would keep a bad status quo. “I hope that these misguided efforts fail,” said Pai. The chairman spoke after the nearby U.S. District Court for the Southern District of New York held a pretrial status conference on the state AG lawsuit (see 1906210033). Pai declined comment on that hearing.

Sprint has “tremendous mid-band resources,” but the record shows the company doesn’t alone have capacity to deploy 5G through much of rural America unless the T-Mobile deal is approved, said Pai: “The combined company will have the capacity to do just that.” The FCC votes next month on opening mid-band spectrum in the 2.5 GHz band, which unacceptably lays fallow in half the country, Pai said. Later this summer, Pai hopes to approve first commercial deployments in 3.5 GHz, with an auction next year, he said.

Pai also slammed those trying to stop 5G in 24 GHz. “It would send a terrible signal to the private sector if the federal government, after auctioning this spectrum for over $2 billion, effectively rendered this spectrum worthless,” he said.

T-Mobile/Sprint has a 60 percent chance of going through, estimated Wells Fargo analyst Jennifer Fritzsche on a panel about financing 5G. It will work if DOJ accepts the deal with significant concessions that create a fourth national carrier, she said. The carriers will have to give up some spectrum, though T-Mobile Chief Technology Officer Neville Ray will likely be reluctant to give away valuable 2.5 GHz spectrum, she said. If the deal isn’t approved, T-Mobile will need more mid-band spectrum, she said.

5G Barriers

Some cities “roll out the red carpet” for 5G while others put up unreasonable barriers, said Wireless Infrastructure Association CEO Jonathan Adelstein on a regulatory panel.

Localities pepper industry with questions about shot clocks, and even in states with small-cells laws, some municipalities are fighting deployment, said Verizon Wireless Vice President-Network Engineering East Andrea Caldini. Localities “largely” are trying to follow shot clocks, though they don’t always make it, said T-Mobile Principal Corporate Counsel Marian Vetro. “There are still municipalities that just flat out do not at all heed the requirements of a shot clock.” Industry tries to be flexible, she said. “Not every shot clock that is blown is met with a deemed granted or a lawsuit.”

“If you want a slow, expensive, frustrating and unfaithful process, you can file a lawsuit, or we can have a discussion and try to get something done more quickly,” said Crown Castle Vice President-Litigation Teddy Adams. Big cities say they want 5G, but some smaller ones believe what they have is good enough, he said. Sometimes, localities reject small cells for aesthetic reasons as a “proxy” for their true concerns about RF emissions, which isn’t an allowed reason to say no, he said. It shows industry hasn’t done a good job convincing people RF isn’t a problem, he said.

Possible RF danger is a “fear that has been brought back to life,” Vetro said. The T-Mobile official similarly said she has seen incidents where the reasons for denying permits don’t reflect the true reason, RF concerns. Such concerns aren't new but have been “repackaged” for 5G’s arrival, she said. Adelstein agreed fears appear to be growing, despite studies to the contrary, and urged the FCC to update its RF standards so people see government takes the issue seriously.

“Our first priority is always going to be public safety,” said New York City Deputy CTO Joshua Breitbart. In a “city of neighborhoods,” one “cookie-cutter” type of equipment won’t aesthetically work everywhere, he said. The city recognizes different providers might need different-looking equipment for their networks, he said. Because small cells don’t serve wide areas, New York also wants to make sure 5G doesn’t widen the digital divide between income groups, he said.

The FCC’s September small-cells order and other infrastructure decisions are "helping around the edges," and "beginning to change attitudes," though the September order is under challenge in the 9th Circuit U.S. Court of Appeals, “not our favorite circuit,” Adelstein said. The WIA president is upbeat on the Streamline Small Cell Deployment Act (S-1699) in Congress but isn’t optimistic about getting an infrastructure bill done, after drama between Democratic leaders and the White House. A New York small-cells bill (S-6071) started conversation but isn’t likely to pass right away, he said. WIA opposes a New York bill giving the Public Service Commission wireless authority (S-1871, A-5043), he said.

5G Potential

New York City wants 5G but on its own terms, said city officials in a morning keynote. The municipality doesn’t want “pockets” in some areas and not others; it wants competition to make service affordable, said Mike Pastor, general counsel for the Department of Information Technology and Telecommunications. Wireless technology will be key for managing roadways and the city’s Vision Zero transportation policy that seeks to reduce the number of fatalities related to automobiles, said Cordell Schachter, Transportation Department CTO.

Residents call the city, not ExteNet or another wireless company, about streetscape issues, noted Pastor. “We’re the ones accountable.” So New York takes seriously its obligation as stewards of public property, he said. The city supported local governments' lawsuit challenging the FCC September small cells order (see 1906180022).

Infrastructure players are early 5G winners, Fritzsche said. Towers remain a core wireless asset, and “wireless needs wires,” she said. We’re in the “mid-second” inning of deployment, she said, with the big question, “How are carriers going to pay for all this?” How many small cells can be deployed is an economic problem, agreed Guggenheim Securities Managing Director SherAfgan Mehboob, saying he still sees long life for 4G, with 5G supplementing that network.

Expect more 5G infrastructure overlap by different carriers in denser, urban areas, said Bank Street Group Senior Managing Director Richard Lukaj. A city like here can more easily support many providers’ equipment because there's more “street furniture” for attachment, said Allnet Insight President Brian Goemmer. In a more suburban environment, three companies may not be able to share the same streetlight, he said.