With the Connect America Fund Phase II reverse auction wrapped up (see 1808280035), the policy discussion needs to shift to spectrum policy, especially forthcoming citizens broadband radio service band decisions, the Wireless ISP Association said Tuesday. It said 15 members were among CAF II reverse auction winners. WISPA CEO Claude Aiken tweeted that the auction results are "one more step in closing the #DigitalDivide" and fixed wireless operators accounting for about half of the auction spending is a "Big moment for the industry."
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.
With their deal in the works, T-Mobile and Sprint are likely to be cautious in the upcoming 28 and 24 GHz auctions, Macquarie’s Amy Yong wrote investors Thursday. “Both will look to participate,” the analyst forecast. “T-Mobile has confirmed its interest and filed a letter asking the FCC to allow it to enter the auctions, while Sprint views mmWave as complementary to its [approximately] 150 MHz of 2.5 GHz spectrum. But, despite protections in place against sharing sensitive competitive info, there could be hesitation to participate at a large scale given the deal’s pending regulatory review. We continue to see the potential for a new class of 5G winners, including New T-Mobile.” Verizon has lots of millimeter-wave spectrum and is likely to participate “opportunistically,” Yong said. While AT&T has more than 375 MHz of 39 GHz in the top 100 markets from its FiberTower, “it will participate in the auctions,” she thinks. Non-carriers also could jump in, she said: “Comcast/Charter’s participation could mean a larger commitment to wireless, while tech could bring new 5G players. We note that Google met with the FCC regarding the C-Band initiative.” Yong said all of the spectrum set for auction by the FCC, including the C-band, has negative implications for Dish Network stockpile of frequency-use rights.
ASPEN, Colo. -- Rollout of next-generation wireless may take longer than some appreciate and customers may not immediately see the need to pay much more for it, some experts said. All on a Technology Policy Institute panel Tuesday agreed 5G will be used for things requiring low latency and high capacity and/or high speeds like telehealth and virtual reality, which some don’t see it as very profitable. They see progress narrowing the digital divide since the TPI panel on that subject a year ago (see 1708220036). Speakers mainly agreed smaller spectrum blocks can help such efforts when carriers expand rural broadband, answering a question from audience member ex-FCC Commissioner Mignon Clyburn.
FCC commissioners approved an order extending the Mobility Fund II challenge window by an additional 90 days. All four commissioners voted yes, though Commissioner Jessica Rosenworcel partially dissented, saying the agency needs to do more on its own to fix the maps that will be used to identify areas without 4G LTE. The fund will provide up to $4.53 billion to support 4G LTE in unserved areas. Chairman Ajit Pai circulated an order earlier this month extending the challenge deadline (see 1808030042).
The FCC denied a pair of petitions for reconsideration by NTCH on the agency's allowing Dish Network to convert 2 GHz band satellite spectrum for terrestrial wireless use, as expected (see 1808130040). In an order released Thursday, commissioners said NTCH hadn't shown it met the threshold requirements for justifying reconsideration and it separately denied them on their merits. It said NTCH's arguments on whether modification of the 2 GHz licenses constituted a fundamental change needed to be raised during the course of the rulemaking, and its license changes were "neither fundamental nor radical." It dismissed NTCH arguments the AWS-4 band should be limited to terrestrial operations, saying that goes beyond the scope of the proceeding to establish service rules for the spectrum. The agency denied NTCH's application for review of the H Block auction procedures (here), saying the company criticized the aggregate reserve price setting, but didn't identify any statute, regulation, precedent or policy that goes against setting an aggregate reserve price. It denied NTCH's application for review of the Wireless Bureau allowing Dish to use AWS-4 spectrum for uplinks or downlinks and an extended AWS-4 buildout deadline (here), saying it hadn't shown the bureau decision caused NTCH any harm. NTCH outside counsel Don Evans of Fletcher Heald said the company will challenge the FCC orders in court. He said the orders ignored that the H-block auction "was rigged," with the Dish waiver being granted on the assumption the company would bid what it ultimately did.
The FCC Wireless Bureau posed 49 paragraphs of questions to T-Mobile on its proposed buy of Sprint. The FCC also asked Sprint for information spanning 48 paragraphs. Bureau Chief Donald Stockdale said in cover letters the agency needs more information to properly review the takeover. This appears typical of what's asked of companies in the middle of a similar big transaction, industry lawyers said. Both companies filed a public interest statement in June (see 1806190062). Many say the deal could face a tough time before federal regulators. The letters were posted Wednesday in docket 18-197.
Pointed questions on contested claims a May 2017 a distributed denial-of-service attack cause a breakdown of the electronic comment filing system and the recently aborted Sinclair buy of Tribune appear likely to be a major feature of the Senate Commerce Committee's Thursday FCC oversight hearing, communications lawyers and lobbyists said in interviews. The panel is expected to echo themes of the House Communications Subcommittee's July FCC hearing (see 1807250043), including a focus on 5G deployments and upcoming spectrum auctions. Chairman Ajit Pai and the other three commissioners are expected to testify (see 1808030014).
The FCC wants to dispose of NTCH petitions for reconsideration dealing with the agency allowing Dish Network to convert satellite spectrum for terrestrial wireless use, according to insiders and court documents. Related drafts were included in an array of items circulated at the agency last week (see here). NTCH had sought a writ of mandamus from the U.S. Court of Appeals for the D.C. Circuit over what it said were petitions trapped "in administrative limbo."
The Intelsat/SES/Intel plan for clearing a portion of the C-band could very well face disagreements among satellite operators, cable companies and wireless interests and their industry groups when comments start coming in on an order and NPRM approved 4-0 in July (see 1807120037), experts and insiders told us. The texts haven't been in the Federal Register. Intelsat CEO Stephen Spengler told us the coalition expects to gain support from incumbent C-band end users over time: "It will be recognition the approach we have made avoids the possibility of the worst outcome" of spectrum sharing.
The FCC posted a public notice on 28 and 24 GHz auctions in docket 18-85 and in 14-177 a Further NPRM proposing a new approach on the 39 GHz band. Both were approved by commissioners 4-0 Thursday (see 1808020025). The only major change from drafts is the FCC now proposes to allow incumbents in the 39 GHz band to use vouchers to acquire new spectrum rights in any of the bands being auctioned. “Our goal is to facilitate the reconfiguration of existing 39 GHz spectrum holdings -- currently licensed in small spectrum block sizes and mismatched geographic areas -- into more contiguous swathes of spectrum that are conducive to wireless broadband deployment, including 5G services,” the FNPM said. “The reconfiguration of incumbent 39 GHz holdings would protect and enhance incumbents’ existing spectrum usage rights, and would increase opportunities for the Commission to offer new licenses for contiguous spectrum blocks at auction.”