The FCC Wireless Bureau authorized AT&T to take control of 39 GHz licenses as part of its buy of FiberTower. Last month, the bureau approved a settlement with FiberTower that made the transfer possible (see 1801290055). AT&T CEO Randall Stephenson later said the licenses are critical to AT&T’s 5G plans (see 1801310074). “After carefully evaluating the likely competitive effects of the proposed transfer of control, we find that the likelihood of any competitive harms is low,” the bureau said Thursday. “AT&T’s post-transaction spectrum holdings across the 39 GHz bands do not raise any competitive concerns in light of the current state of the marketplace and our millimeter wave spectrum holdings threshold, as recently revised in the Spectrum Frontiers Second Report and Order.” The bureau dismissed objections by the Competitive Carriers Association, T-Mobile and others, finding "no evidence in the record to support a finding that the transaction will result in potential public interest harms.” CCA and T-Mobile didn’t comment.
FCC Chairman Ajit Pai said he's appointing a task force on technological solutions to contraband cellphones in correctional institutions, after Wednesday's meeting with carriers and corrections officials (see 1802070048). “Our goal in convening this meeting was to bring together a diverse group to determine the most effective, affordable, and safe ways to address this problem -- that is, to stop the threat of contraband cellphones without causing harm to legitimate wireless users,” Pai said Wednesday. “I’m particularly pleased that the wireless industry committed to taking on a more meaningful role. For instance, they’ve shown a willingness to work with government officials to test possible technological solutions and to participate in a task force that will continue today’s conversation with aggressive but achievable deadlines.” Industry has made progress, but work remains, Pai said. Industry representatives who attended the meeting said discussion was good and people came away feeling positive. “T-Mobile supports the FCC’s multistakeholder approach to identify and implement meaningful, timely solutions to the threat posed by contraband devices in correctional facilities,” said Steve Sharkey, vice president-government affairs.
T-Mobile said growth continued in Q4, with 1.9 million total net additions and 1.1 million postpaid phone adds. The carrier said it added 3.6 million postpaid phone subscribers in 2017. Postpaid churn was T-Mobile's lowest ever at 1.18 percent. CEO John Legere said the company has soared in the five years since he told CES that the carrier would “take a stand against a stupid, broken industry.” T-Mobile has gone from 33 million customers at the end of 2012 to nearly 73 million, Legere said Thursday. T-Mobile had a “lagging 3G network” then, and now has a 4G network that is “blazing fast," he said. The recently enacted Tax Cuts and Jobs Act had a net effect of $2.2 billion on earnings. After going big in the TV incentive auction, Legere said that at the end of 2017, the company had turned on its 600 MHz spectrum from the auction in parts of 28 states, covering 300,000 square miles. T-Mobile offered two 600 MHz-capable phones at the end of last year and expects to have at least 12 available this year, he said. Legere said the carrier added nearly 2,800 stores in 2017. “With a Sprint merger officially off the table for the time being, T-Mobile is focused on continuing to grow its business organically through retail and network expansion,” Technology Business Research wrote investors. “T-Mobile will sustain revenue and subscriber growth over the next two years by sticking to its core Un-carrier strategies and will capitalize on Netflix On Us to cement its position as a value leader in the U.S. postpaid market.” Craig Moffett of MoffettNathanson said T-Mobile’s stock has struggled since it called off a possible Sprint deal (see 1711060068). “Shares have nicely rebounded from their lows after the merger was called off, and have outperformed over the past three months, but over a year, they have lagged,” Moffett wrote. “Lately, they have struggled to do much more than tread water.” They closed down 5.1 percent at $58.88 as the market overall fell.
The size and likely competitiveness of the U.S. narrowband IoT connectivity market likely means Dish Network will end up being sold to a third party, Citi analyst Jason Bazinet emailed investors Wednesday. He said the market will be about $10 billion in annual revenue by 2025, and Dish likely will be competing with four existing wireless carriers for a slice. The company didn't comment.
The MVDDS 5G Coalition asked the FCC to act on its petition for rulemaking seeking use of the 12.2-12.7 GHz band for 5G broadband (see 1604260068). “The Coalition supports making additional mid-band spectrum available for the delivery of next-generation wireless broadband services,” said the multichannel video distribution and data service group. “Next-generation wireless broadband networks need high-, mid- and low-band spectrum to function.” Mid-band spectrum, between 3.7 GHz and 24 GHz, “promises to serve as a critical foundation for 5G services because the spectrum combines the favorable coverage characteristics of lower frequency bands with the high-capacity capability of high-frequency spectrum,” the coalition said in docket 17-183.
Shentel is poised to emerge as a bigger regional player, after wrapping up the integration of nTelos in the second half of last year, Macquarie analyst Amy Yong said Tuesday in a note to investors. Shentel acquired nTelos, which served parts of Kentucky, Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia, in May 2016 (see 1605090002). “With increased confidence in execution, a new [Chief Financial Officer] James Woodward, and an amendment to expand its regional footprint by ~16 percent, Shentel is well poised for the next leg of growth,” Yong wrote. “The company is uniquely positioned to capitalize on its Sprint affiliate status and remain dominant in a competition-friendly, Mid-Atlantic footprint.”
The FCC Wireless Bureau reminded 700 MHz guard band licensees and 220 MHz band managers of their obligation to file timely annual reports on or before March 1. “Licensees must provide information about the manner in which the spectrum in each of their markets is being utilized,” said a public notice. “The information provided should accurately convey the current level of service being offered in each licensed area, including information regarding coverage provided by Licensees’ operations and any spectrum lease agreements.” Failure to file could lead to enforcement action, the bureau warned.
Apple shipped 2.4 million cellular versions of the Series 3 Watch worldwide last year, Canalys reported, and total Series 3 shipments were just under 9 million, nearly half of all Apple watch shipments. In Q4, Apple watch shipments rose 32 percent to 8 million, a record for any wearables vendor, it said Tuesday. “Apple has won the wearables game,” said analyst Jason Low.
Competitive Carriers Association representatives met last week with aides to FCC Commissioners Mignon Clyburn and Brendan Carr on wireless siting. CCA said the FCC should decide small cells and distributed antenna system deployments are outside the scope of a “federal undertaking” under the National Historic Preservation Act. “CCA’s members continue to have a keen interest in reducing escalating fees and administrative delays presented by the … review process,” CCA said in docket 17-79. “Tribal fees and administrative burdens attached to the historic review process have escalated sharply in recent years, and these costs and permitting delays will continue to rise as CCA members deploy to meet consumers’ increasing data demands.” Members have faced tribal review fees from $250 to $1,650 a tribe per location, CCA said.
Starry CEO Chet Kanojia, meeting with FCC Chairman Ajit Pai, updated its U.S. deployment plans and its Marvell collaboration on fixed wireless technologies aimed at 5G, said a docket 14-177 ex parte filing posted Monday. Starry urged agency progress on setting a spectrum frontiers auction timeline and promulgating coordinated sharing rules for the lower 37 GHz band.