RCA, AT&T Exchange Blows on Need for 700 MHz Interoperability Mandate

FCC officials say it remains unclear whether Chairman Julius Genachowski, who hopes industry will be able to work out a voluntary agreement, will eventually press for a mandate (CD June 5 p1). RCA President Steve Berry told us Tuesday a voluntary solution won’t work. “We've been waiting for a voluntary industry solution to interoperability for years, having met with the CEO of AT&T and other AT&T officials, to no avail,” he said. “It’s time for the FCC to step up and make it a requirement. If the chairman wants to keep waiting, at this rate he won’t be chairman anymore.”

"AT&T should not be allowed to unilaterally undermine a pro-competition policy to advance their self-interest,” Berry said in a written statement. “It is abundantly clear that AT&T is not interested in finding an industry solution to interoperability, and it is time for the Commission to ensure the public interest is served by implementing an interoperability requirement. The Commission should set a date certain for the industry to transition to an interoperable Band Class 12, and then can utilize its many resources to bring together industry experts and stakeholders to help resolve the real technical challenges to achieving interoperability."

"The opening comments reflect widespread support for Commission action to ensure interoperability across the Lower 700 MHz band,” RCA’s reply said (http://xrl.us/bng7mp). “The record establishes that the tremendous potential of this block of spectrum has been substantially impeded through its unprecedented division into non-interoperable bands. AT&T’s growing dominance in the industry and its manipulation of the standards-setting process has allowed it to command the latest technologies for its Band 17 operations, leaving smaller carriers that hold Lower A Block licenses unable to acquire devices at reasonable prices and unable to build an economic case to expand their networks."

RCA said it’s not surprising that AT&T is nearly unique among wireless carriers in opposing commission action. The company’s “economic incentive is to cement or increase its market power by preserving its advantage in the Lower 700 MHz band, which is very different from the Commission’s mandate to promote the public interest,” RCA said. “The problem is that industry, left entirely to its own devices, has failed for years to achieve interoperability and its inertia has only exacerbated the competitive problem. It is now clear that the Commission must step in to protect the public interest."

AT&T fired back that a mandate would be pointless. “The A Block licensees’ central claim -- that they cannot obtain Band 12 devices without a mandate -- has been resoundingly refuted in the marketplace,” the carrier said (http://xrl.us/bng7oe). “Although the first A Block LTE service was only recently launched, A Block licensees already have access to Band 12 handset, tablet, and hotspot variants of devices first produced for other LTE bands.” Initial comments “likewise confirm that A Block licensees would not be able to offer AT&T devices to their own customers even if the Commission did force AT&T to buy Band 12 devices,” the firm said. “All AT&T handsets are designed to ‘fall back’ to GSM/UMTS technology; the A Block licensees need handsets that employ CDMA technology."

A mandate wouldn’t make roaming easier for small carriers, AT&T said. “The comments confirm that the multiband chipsets that are already the industry norm provide A Block carriers with robust opportunities to roam on a variety of LTE (and other) networks in addition to other Band 12 networks,” the carrier said. “U.S. Cellular already uses quad-band LTE chipsets (and, indeed, was the first to offer that capability). And LTE roaming options are about to expand further with chipsets that allow a device to transmit and receive signals on up to 3 different bands below 1 GHz and 7 bands in total.” A mandate could do substantial harm, AT&T continued. “The proposed regulation would subject AT&T and its customers to interference that would degrade AT&T’s LTE service quality and force AT&T to incur enormous and otherwise unnecessary costs in an effort to limit the harm from such interference,” it said. “The A Block licensees do continue to assert that forcing AT&T to Band 12 would not expose AT&T customers to harmful interference. But the record evidence overwhelmingly confirms that the interference-related harm is real and substantial. Rigorous testing and engineering analyses demonstrate that at typical real-world power levels, E Block and Channel 51 transmissions would cause substantially degraded service -- creating broad LTE ‘no call’ zones for AT&T’s customers if AT&T were required to use Band 12 devices."

Verizon Wireless said the FCC could do more good by addressing Channel 51 interference and other interference issues. “The record in this proceeding shows that interoperability in the Lower 700 MHz band can best be promoted through voluntary industry efforts, rather than prescriptive regulatory solutions,” the carrier said (http://xrl.us/bng7or). “Multiple commenters identify a number of proposals that will resolve the interference issues that have impeded the development of interoperable Lower 700 MHz devices. If adopted, these proposals will not only encourage the development of interoperable Lower 700 MHz devices but will also promote deployment of the Lower 700 MHz A Block."

T-Mobile sided with RCA. “While T-Mobile generally prefers industry solutions to regulatory mandates, the majority of commenters agree that an industry solution is unlikely, and therefore a Commission-imposed Lower 700 MHz interoperability requirement is necessary and in the public interest,” the carrier said (http://xrl.us/bng7rb). “Commission action to achieve interoperability is fully within the Commission’s authority and would enhance competition and facilitate the delivery of high quality, lower priced wireless services to consumers."

U.S. Cellular said proponents of a mandate have made a “powerful case,” and the FCC should step in in short order. “Interoperability would promote economies of scale and scope and alleviate inequities among Lower 700 MHz licensees by enabling the formation of a robust device market serving all Lower 700 MHz licensees, and thus benefitting consumers in all areas with a greater choice of high-quality mobile devices at affordable prices,” the carrier said (http://xrl.us/bng7pb). “Consumers in rural and unserved areas would benefit because a significant number of Lower A Block licenses are held by smaller, rural, and regional licensees, which have thus far been hampered from deploying competitive facilities-based mobile broadband networks in these areas because of a lack of access to devices.” Regional carrier SouthenLINC also called on the FCC to impose an interoperability mandate: “The current lack of interoperability has effectively deprived competitive wireless carriers access to handsets that operate in the Lower 700 MHz A block, thus severely -- and unnecessarily -- restricting the ability of these carriers to provide consumers with competitive alternatives to the nation’s two largest carriers” (http://xrl.us/bng7ih).

Vulcan Wireless, active in the proceeding, said the FCC’s record is clear. “The initial round of comments demonstrated not only the numerous public interest benefits that would follow from interoperability, but also the feasibility and practicality of adopting Band Class 12 as the standard to achieve interoperability in the Lower 700 MHz band,” the company said (http://xrl.us/bng7mx). “Vulcan continues to believe that Band Class 12 offers the most technically viable and practical solution for achieving interoperability, with minimal transition costs."

Small carrier calls for a mandate were endorsed by the National Association of Police Organizations. “NAPO holds the position that the entirety of the 700 MHz band should be interoperable,” the group said (http://xrl.us/bng7i2). “Currently, the 700 MHz spectrum is one of the largest commercial mobile services bands available and is the only one that is non-interoperable. NAPO urges the Commission to move quickly toward assuring interoperability across at least the Lower 700 MHz spectrum. This would be a step in the right direction toward full 700 MHz interoperability."

CTIA said the initial comments demonstrate the need for FCC action to address long-standing interference concerns challenging the usability of lower 700 MHz spectrum. “It is clear from the evidence provided in this proceeding that the interference environment from Channel 51 and high power E block operation would benefit from Commission action,” the group said (http://xrl.us/bng7rh). “CTIA notes that numerous parties in this proceeding have proffered possible solutions for the Commission to explore, and the Commission should closely review all such proposals.”