Clarification: The FCC’s first seven wireless competition reports didn't include any conclusions on whether the industry was effectively competitive, though the next six reports concluded it was (see 1505290049).

Research foundation Engine pressed the FCC to allocate 40 MHz of reserve spectrum, open to carriers without dominant holdings of low-band spectrum, as part of its rules for the TV incentive auction. Engine, which advises startups, reported on meetings with aides to several of the FCC commissioners, including Chairman Tom Wheeler. Examples from the wireline world show that the addition of even one competitor to a market leads to lower prices and higher Internet speeds, Engine said. The currently proposed 30 MHz reserve would allow only one competitor to buy a 10 x 10 MHz block of spectrum in each market, Engine said. The filing was in docket 12-268.

History shows that to guarantee a successful TV incentive auction, the FCC should do as little as possible to offer preferences for some bidders over others, said Gregory Vogt, visiting fellow at the Free State Foundation, in a Monday blog post. Policymakers need look no further than the AWS-3 auction in Canada versus an auction of similar spectrum in the U.S., Vogt wrote. “The Canadian government specifically intended that a major goal of its AWS-3 auction was to inject more competition in the market, rather than obtaining auction revenues,” he said. “Thus, it set-aside a block of 30 MHz available only to bidders that were smaller than the ‘big three,’ who currently have roughly a 90 percent market share. All other bidders had to vie for two 10 MHz blocks.” The AWS-3 auction in Canada brought in $2.2 billion, versus close to $41.3 billion for the U.S. version, he said. “The skewed Canadian auction resulted, according to one assessment, in a cost of about 11 cents per MHz/Pop for the favored bidders, while Telus paid $3.02 per MHz/Pop and BCE paid $2.96 per MHz/Pop,” Vogt said. A skewed system “could prove catastrophic for the U.S. incentive auction,” he said. “If broadcasters believe that the potential outcome of the incentive auction is relatively low, they may well just hang on to their spectrum. In that case, the government, broadcasters, mobile providers, and consumers will all lose.” The Hispanic Technology and Telecommunications Partnership, meanwhile, met with Commissioner Mike O’Rielly to argue against providing additional benefits for competitive carriers in the auction. “HTTP made it clear that it does not support multi-billion [dollar] companies getting multi-billion dollar, taxpayer funded discounts on spectrum by trying to masquerade as a small DE and that HTTP is opposed to further set asides in the upcoming auction,” the group said in a filing in docket 14-28.

The FCC shouldn't destroy the historic designated entity classification because of concerns over the bidding practices of a few DEs in the AWS-3 auction, U.S. Cellular said in a meeting with Wireless Bureau Chief Roger Sherman and other FCC officials, according to ex parte filing posted Monday by the FCC. AT&T and smaller carriers last month asked the FCC to restructure the DE program in light of alleged bidding irregularities by two DEs working with Dish Network in the auction, known in FCC parlance as Auction 97 (see 1505110048). The FCC should “not allow a justified concern over possible abuses among participants in a joint bidding arrangement in Auction 97 to obscure its traditional recognition of the necessary financial prerequisites of a solid DE program, one which allows DEs to achieve adequate scale and scope, and gives them a reasonable chance to succeed,” U.S. Cellular said. Since 1994 when the DE program was launched “the Commission has acknowledged that bidding credits for DEs have been a necessary incentive for these investments, which have allowed DEs to obtain more than a negligible number of licenses,” the carrier said. U.S. Cellular highlighted its work with DEs to bid in spectrum auctions. “The DE program has helped U.S. Cellular remain in business and invest aggressively as a mid-sized carrier in an industry dominated by giants,” it said. The filing was made in docket 14-70.

CTIA asked the Architectural and Transportation Barriers Compliance Board to adopt “descriptive, rather than prescriptive” rules as it considers any rule change on the accessibility standards for information and communication technology (ICT) under Section 508 of the 1973 Rehabilitation Act. “A descriptive approach is the most effective way to provide the flexibility and certainty that the industry needs to continue to offer a diverse array of accessible products and services,” CTIA said. The board should allow a flexible approach to real-time text (RTT) “taking into consideration the significant resources necessary to meet the Access Board’s proposal for interoperable RTT,” the wireless association said. The board also should “be careful to act only within the limited scope of its jurisdiction under Section 255 by maintaining the existing definitions of software and content integral to telecommunications equipment,” CTIA said. “The pace of innovation in the mobile space is unprecedented in the history of ICT development. As the industry continues to evolve, wireless companies remain dedicated to ensuring that everyone, including people with disabilities, can take advantage of innovative wireless products and services.”

An FCC examination of LTE-unlicensed and licensed assisted access technology must be technology neutral, CTIA officials told FCC staff, said an ex parte filing in docket 15-105. The FCC released a public notice seeking comment on both (see 1505050047). Comments are due June 11 in docket 15-105. Technological neutrality “will allow industry to innovate and evolve broadband services to best serve wireless consumers,” CTIA said. “This approach also will allow industry standards bodies to determine the most appropriate technical capabilities for providing LTE technology under Part 15.”

The FCC Wireless Bureau sought comment on its annual, often controversial, mobile wireless competition report. In December the bureau released the last edition over complaints by Commissioners Ajit Pai and Mike O’Rielly that they weren't allowed to vote on the report, released instead on delegated authority (see 1412180058). Since 2010 and the first wireless competition report of the Obama administration, the agency has declined to find in the required report to Congress that the wireless industry is effectively competitive (see 1005210135). Prior to 2010, the FCC had found it was. “This Notice seeks comment and information on competitive dynamics within the mobile wireless marketplace, for example, with respect to the number of subscribers and financial indicators such as revenue or profitability,” the Friday notice said. “We seek comment and information on overall industry metrics such as coverage, including by spectrum band, technology, geography, and demographics.” Comments are due June 20, replies July 14.

The FCC Wireless Bureau gave U.S. Cellular more than it asked for in approving a 2014 waiver request on inspection of its communications towers. In its waiver request, the carrier said it uses the Network Operations Center Tower Alarm Monitoring (NTAM) system for all but 187 of its approximately 2,414 FCC-registered towers and asked that for the NATM-monitored towers it be allowed to do annual rather than quarterly inspections. Since the request was filed the FCC has amended its rules by adding new Section 17.47(c) to its regulations, which authorizes the bureau to relieve all inspection obligations for antenna structure owners using monitoring systems that meet waiver criteria, the bureau said. The bureau said as a result it's relieving U.S. Cellular of all inspection requirements for towers using the NTAM system.

Officials from AT&T and small carriers made their case for a revised designated entity (DE) program, holding meetings with aides to all five FCC commissioners, said a series of filings in docket 12-268. Among those representing carriers was former Rep. Robin Tallon, D-S.C. AT&T and the small carriers proposed revisions to the DE program May 11, which would recast it to provide limited bidding credits to small carriers rather than traditional DEs (see 1505110048). “The parties explained that the original intent of the FCC’s DE program has been lost due to gamesmanship and exploitation of existing rules within the DE program as evidenced by the results” of the AWS-3 auction, one of the filings said. “FCC adoption of the Joint Proposal will benefit those legitimate small businesses that the program was created to benefit.”

Global shipments of tablets, including stand-alone devices and tablets built into 2-in-1 convertible laptops, will reach 221.8 million units this year, a 3.8 percent decline from 2014, IDC said Thursday in its quarterly “tablet tracker” report. IDC’s new downgraded outlook follows two consecutive quarters of declining sales and is a "modest" downward revision from the previous forecast of 234.5 million units and 2.1 percent year-over-year growth in 2015, IDC said. “While IDC expects overall sales to decline in 2015, some segments of the product category are poised to experience strong growth,” it said. For example, “cellular-capable” tablets and 2-in-1 devices are “a huge opportunity for the entire tablet ecosystem," it said. Although still a small portion of the entire market, this segment is expected to grow this year and beyond, it said. IDC forecasts that this segment will see a five-year compound annual growth rate of 5.6 percent compared with Wi-Fi-only devices, which will experience a 0.4 percent five-year CAGR decline, it said.