Verizon isn’t changing strategies despite change at the top, CEO Hans Vestberg said at a Goldman Sachs conference Thursday. He said Verizon is winning the race to 5G, also a centerpiece of a show in Los Angeles (see 1809130043). Vestberg took over as CEO from Lowell McAdam Aug. 1.
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.
AT&T CEO Randall Stephenson said Congress, not states, must tackle privacy and net neutrality laws. State privacy laws are a problem for everyone, including AT&T, Facebook and Google, he told a Goldman Sachs conference Wednesday. “I don’t even know how we operate” under different laws, he said. “It needs to happen at the federal level,” he said. “Congress needs to step up.”
The U.S. will have more than 50 5G cities at this time next year but to get there will require speeding up siting and help from the FCC, CTIA President Meredith Baker said Wednesday at the Mobile World Congress event in Los Angeles. The agency needs to reallocate more spectrum for broadband, she said. Commissioners are set to take up the next big wireless infrastructure order at their Sept. 26 meeting (see 1809050029). It's raising local concerns (see 1809110030).
Apple’s annual September product launch lacked the typical surprise and any word of the AirPower wireless charging pad first mentioned last September to charge an iPhone, Apple Watch and AirPods simultaneously (see 1709120062). Wednesday's event streamed from the company's Cupertino, California, headquarters focused heavily on camera features in the three new iPhones and on medical capabilities of the Apple Watch Series 4. The largest Apple phone to date, the iPhone Xs Max, has a 6.5-inch display, leading industry analyst Ross Rubin to tweet: “As if there were any doubt left why Apple killed the iPad mini.” The latest iPhones start at $749 for the iPhone XR, due in October, at $999 for the iPhone Xs and $1,099 for the iPhone Xs Max, slated for Sept. 21 shipping. Good news about the new iPhones is they are 600 MHz compatible and will use the spectrum T-Mobile bought in the TV incentive auction, an executive of the carrier said later that day (see 1809120031).
CTIA and others encouraged the FCC to make more spectrum bands available for 5G, in comments on reports to Congress required by the Spectrum Pipeline Act. Comments were due Tuesday on an August public notice, seeking feedback on results of 2015 rule changes to the 3.55-3.65 GHz band and on other bands that can be reallocated for broadband (see 1808100033). The U.S. wireless industry needs spectrum to keep up with the world, CTIA said in docket 14-177. “Other countries, from Asia to Europe, are moving aggressively to lead the world in 5G and are actively working to make spectrum available for 5G in both mid-band and high-band spectrum ranges,” CTIA said. “China, for example, reserved spectrum in the 3.3-3.6 GHz band for 5G use in 2017 and has committed two gigahertz of high-band spectrum for each major wireless operator.” Other commenters filed on a third Further NPRM on the spectrum frontiers. The Competitive Carriers Association applauded Chairman Ajit Pai’s proposal to simultaneously auction the 37 GHz, 39 GHz and 47 GHz bands. “In addition to these worthwhile efforts, opening up additional bands, such as the 26 GHz and 42 GHz bands, for wireless broadband will help continue the deployment of critical wireless services to all consumers. Competitive carriers need access to a variety of spectrum resources to deploy next-generation mobile broadband technologies, including to support the Internet of Things and 5G,” CCA said. The Wireless ISP Association said the FCC should confirm that the lower 37 GHz band will be available on a coordinated shared licensed basis. “Low-barrier shared spectrum is critical for small providers, new market entrants, and competitive fixed wireless providers alike to have access to the spectrum necessary to deploy broadband in areas that are underserved or lack competition,” WISPA said. The Open Technology Institute at New America also said the lower 37 GHz band should be shared. “Authorization of a third-party and ultimately automated coordination framework will facilitate the most intensive and cost-effective degree of shared access,” OTI commented. OTI supported site-based registration through a third-party coordinator. “Pressure on existing licensed mobile and unlicensed spectrum bands will continue to intensify due to the growing consumer demand for wireless connectivity, and the bands identified in the FNPRM will certainly serve an important role in providing 5G,” Qualcomm said, asking to “authorize mobile and fixed operations in these bands using licensed and shared unlicensed regulatory paradigms.”
FCC Commissioner Mike O'Rielly urged the Rural Utilities Service to target $600 million in congressional appropriations for boosting broadband on "areas most in need of support" that are "truly unserved." O'Rielly and Microsoft urged a "technology-neutral" approach, and the American Cable Association said RUS must "prevent overbuilding of existing broadband providers and coordinate with broadband support programs of other federal agencies." There were 130 comments posted by Monday in RUS-18-TELECOM-0004 of regulations.gov in response to a notice of inquiry on how to structure an e-Connectivity pilot program.
An incentive auction likely isn't appropriate for the 2.5 GHz band and county-based licensing makes more sense, T-Mobile replied on an NPRM looking at the future of the educational broadband service band (see 1809070048). Merger partner Sprint argued against changes to how the band is treated. Replies were due last week in FCC docket 18-120. Numerous comments posted Monday.
All U.S. spectrum policies haven’t been success stories and that’s the way things should work, NTIA Administrator David Redl said at a Silicon Flatirons conference Thursday evening (see 1809060049) titled: “Spectrum Hall of Shame: The Worst (and Best) Radio Policy Decisions.” Others said flexible licenses have been a hallmark of U.S. success.
A long-awaited FCC order on changes to rules for the citizens broadband radio service band is unlikely for the Sept. 26 commissioners’ meeting, but should get a vote at the Oct. 23 meeting, said industry officials active in the 3.5 GHz proceeding. FCC Commissioner Mike O’Rielly said in early July he started to share his long-awaited proposal for the band with Chairman Ajit Pai (see Notebook section at end of 1807120033).
The House and Senate Commerce committees are aiming to continue working on telecom and media issues in September, lawmakers and lobbyists said in interviews. Senate Commerce leaders plan additional work to create a spectrum and 5G-related legislative package as the committee’s top telecom priority. House Commerce is eyeing a September media marketplace hearing with a likely focus on the Next Generation Television Marketplace Act (HR-6465). Lobbyists and communications sector observers cautioned that Capitol Hill’s rapidly closing legislative window means there's only a limited chance new telecom bills will advance before November elections and the subsequent lame-duck session.