With DOJ's justification for approving T-Mobile/Sprint largely hinging on Dish Network's ability to become a national wireless player (see 1907260071), wireless industry watchers tell us that whether Dish can pull that off is a big question mark. "Wireless is a very tough business to get right -- many companies have tried and failed," said wireless analyst Jeff Kagan.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
House Communications Subcommittee Chairman Mike Doyle, D-Pa., again (see 1905150061) criticized the C-Band Alliance's proposal for clearing spectrum in 3.7-4.2 GHz, saying during a Thursday House Commerce Committee hearing it could disrupt the opportunity for using proceeds from sales of the spectrum to pay for rural broadband deployment. Several tech and telecom policy topics came up during Thursday's hearing on the policy priorities of lawmakers who aren't its members. Rep. Ed Case, D-Hawaii, urged House Commerce to probe the tech sector's Communications Decency Act Section 230 liability shield and make further CDA changes.
T-Mobile/Sprint delayed an expected announcement (see 1907240062) of a deal with Dish Network Thursday. T-Mobile issued a news release less than an hour before a Q2 call with its CEO John Legere and others, saying the call was delayed. T-Mobile was ready to go and the holdup likely came from DOJ, which appears to be looking for state support, industry officials said. The deal with Dish was intended to address Justice interest in creating a fourth national wireless carrier to replace Sprint. Dish closed at $39.17, down 5.75 percent.
Sens. Cory Gardner, R-Colo., and Maggie Hassan, D-N.H., moved forward Tuesday with the long-delayed (see 1903270071) refiling of their Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum (Airwaves) Act (S-2223), but the reappearance of a House version of the measure won't happen until at least after Labor Day. The Airwaves Act, first filed during the last Congress, aims to identify spectrum for unlicensed use and free up mid-band spectrum for wireless industry purchase via an FCC auction (see 1802070054). Four other senators are co-sponsors -- Tammy Baldwin, D-Wis.; Shelley Moore Capito, R-W.Va.; Catherine Cortez Masto, D-Nev.; and Marco Rubio, R-Fla. T-Mobile and several communications sector groups backed S-2223 -- the Competitive Carriers Association, CTA and NCTA. CTIA Senior Vice President-Government Affairs Kelly Cole stopped short of endorsing S-2223 but said Gardner and Hassan “are rightly focused on getting more spectrum into the commercial marketplace as possible, which is critical for 5G.” House Communications Subcommittee Chairman Mike Doyle, D-Pa., told reporters his office is “still negotiating” with other lawmakers on a revised House version of the Airwaves Act, which he said is being developed entirely independently of S-2223. “Those discussions are ongoing,” but the filing of a bill is “going to have to wait until the fall” since the House is expected to begin its five-week August recess after this week, Doyle said. He has been eyeing potential lead Republican co-sponsors for the measure, including Reps. Susan Brooks of Indiana and Tim Walberg of Michigan (see 1905080050).
Ligado urged the FCC to finalize rules for the 1675-1680 MHz band, in reply comments this week in docket 19-116. Weather interests oppose Ligado's terrestrial low-power service plans for the band and its proposed alternatives for delivering NOAA weather satellite data (see 1704130023). Commissioners launched an NPRM in May seeking comment (see 1905090041).
Major Senate 5G security advocates say they're eyeing potential legislative vehicles to advance the Secure 5G and Beyond Act (S-893) and U.S. 5G Leadership Act (S-1625). The Senate Commerce Committee advanced both measures and the Broadband Deployment Accuracy and Technological Availability (Data) Act (S-1822) during a Wednesday markup, as expected (see 1907230048). The committee revised all three measures Wednesday. 5G and spectrum issues also came up during two Wednesday hearings on White House Office of Science and Technology Policy matters.
The FCC can't legally hold a private sale of C-band spectrum, said Michael Calabrese, director of the Wireless Future Program at New America, in a meeting with Aaron Goldberger, aide to Chairman Ajit Pai. “The Public Interest Spectrum Coalition and diverse industry parties have shown that a private auction or sale would violate Section 309(j) of the Communications Act and willfully ignore Congressional intent and precedent,” said a filing in docket 18-122. “The Commission has no legal authority to authorize, let alone oversee, a private auction. General provisions such as Sections 303(c), 303(r) and 4(i) cannot possibly provide the authority for a public or private auction that is not consistent with the explicit provisions of Section 309(j).” The best course is a traditional FCC auction, Calabrese said. The Free State Foundation called on the FCC to act swiftly on the C band in a filing Monday. “Time is of the essence in making additional spectrum resources available for commercial providers of next-generation mobile broadband services,” FSF said: “Hundreds of megahertz of new spectrum are needed to supply the future data-rich demands of American consumers and enterprises.”
The FCC Wireless Bureau approved Northern Michigan University’s (NMU) request for a waiver of the filing freeze on new educational broadband service licensees so it can add to its network. FCC commissioners approved revised rules for the 2.5 GHz band at their July meeting, with an emphasis on selling it at auction (see 1907100054). “We conclude that application of the filing freeze would be inequitable and contrary to the public interest under the unique circumstances presented by NMU,” the bureau said in a Monday order: “NMU is unique among EBS licensees -- while most EBS licensees have not built their own facilities and have leased their spectrum to commercial providers, NMU has built and operates its own LTE broadband network that covers a significant portion of the rugged, underserved territory in Michigan’s Upper Peninsula. The network is used extensively by NMU’s students and faculty, students of partner institutions, and other members of the community.”
Parties in proposed reallocation of some C band for 5G said each of their plans is the only one that makes sense, in docket 18-122 comments posted Friday. The Wireless and International bureaus and offices of Engineering and Technology and of Economics and Analytics said in a public notice Friday they were seeking comment on the band-clearing plans put forward by AT&T; America's Communications Association, the CCA and Charter Communications; and the Wireless ISP Association, Google and Microsoft. Comments are due Aug. 7 and replies Aug. 14.
The Enterprise Wireless Alliance is questioning why the FCC quietly stopped processing applications for Part 90 license renewals for the T band. A provision in the 2012 spectrum law mandates public safety agencies move off the 470-512 band by 2021 (see 1808020051). EWA complained the FCC won’t contingently renew the licenses and never released a notice saying it won’t renew licenses. The agency didn’t comment.