The value of spectrum in the upcoming AWS-3 and TV incentive auctions is hard to predict and is based on more factors than growing demands for wireless data, said Citi analysts including Michael Rollins in a research report Sunday. The value of spectrum is also affected by the number of cell sites a carrier deploys and technology, Rollins wrote. “There is an economic trade-off between buying spectrum vs. building more sites,” he said. “In effect, the economic value of spectrum is tethered to the benefit of avoided cell site costs to serve the data traffic growth.” Rollins offered projected revenue for the auctions, predicting that a 10x10 MHz block will bring in $1.97 per MHz-POP; a 5x5 block, $1.20/MHz-POP; 10 MHz uplink spectrum, $0.87/MHz-POP; and 5 MHz uplink spectrum, $0.53/MHz-POP.
T-Mobile representatives explained their May 27 petition seeking guidance on data roaming rules, in a meeting Wednesday with FCC Wireless Bureau Chief Roger Sherman and other commission officials. The carrier sought “predictable” enforcement criteria for determining whether the terms of data roaming agreements meet the “commercially reasonable” standard adopted by the commission in its 2011 data roaming order (http://bit.ly/Ry0kWn). “The limited intervention and guidance sought by T-Mobile will provide necessary clarity for individualized negotiations and help all parties better evaluate the commercial reasonableness of offered terms,” T-Mobile said, according to an ex parte filing posted Friday in docket 05-265.
The FCC should take “early steps” to release information on interference complaints and investigations, including those voluntarily resolved by the affected parties, said a white paper released by the FCC Technological Advisory Council’s Spectrum Receiver Performance Working Group. “Whether interference is harmful or not is technically complex and highly subjective.” The paper examined the future of interference enforcement. The communications world is changing, with terrestrial wireless systems relying on low-power base stations proving coverage “over small areas on an interference-limited basis,” the paper noted (http://bit.ly/SXCK5R). Another big development is the emergence of Wi-Fi and other unlicensed systems. “Today’s low power/low antenna height network architectures, coupled with the high mobility and low power of individual end user devices, make spectrum monitoring from a limited number of fixed locations problematic,” the paper said. “It also necessitates more sensitive mobile and portable monitoring devices that can process signals from devices that operate with multiple, sophisticated waveforms on multiple channels in multiple bands on a highly dynamic basis.” The paper outlined areas for future work by TAC. The council should examine the potential costs and benefits of a “Public-Private Partnership that would serve as a forum for the voluntary sharing of information on interference incidents in a systematic fashion,” the paper said. TAC should also identify, analyze and recommend “new strategies for interference resolution and enforcement” and investigate the changing radiofrequency noise floor “and its impact on wireless services,” the report said. The principal author was Dale Hatfield, former chief of the FCC Office of Engineering and Technology and former acting NTIA administrator.
The FCC proposed $34.9 million fine against Chinese company C.T.S. Technology is “impressive,” but may only be “symbolic,” said Fletcher Heald lawyer Mitchell Lazarus Friday in a blog post. The FCC said the fine would be the biggest in agency history (CD June 20 p5). If an offender won’t pay, the FCC’s usual recourse is to file a lawsuit in federal court, Lazarus wrote (http://bit.ly/SXEoED). The court’s reach may not extend to China, he said. “There is a treaty called the Hague Service Convention that may help, but we're guessing its implementation might be slow and uncertain.” Lazarus also questioned the extent to which C.T.S. actually violated the law. While C.T.S. did ship at least 10 devices to U.S. addresses, “it performed its acts in China, where it may be perfectly legal to ship jammers to U.S. addresses,” he said. While importation of the devices was “unquestionably unlawful,” wrote Lazarus, “FCC staffers, not C.T.S., did that by initiating the transactions and accepting delivery.” Citing the company for 275 devices it advertised but did not necessarily ship is still more “tenuous,” he said. “There is only one Internet; a company cannot easily promote its products on line in some parts of the world but not others.”
T-Mobile’s unlimited data plans for music streaming with Rhapsody’s new unRadio service is the “latest example of ISPs using data caps to undermine net neutrality,” said Michael Weinberg, Public Knowledge vice president, in a blog post included in a Friday email to PK supporters (http://bit.ly/1pnVVmd). Some net neutrality experts are worried the deal gives less credibility to data caps, while others see the partnership as a victory for consumers (CD June 20 p8). T-Mobile has joined AT&T and Comcast as ISPs that use “data caps as a pretext to manipulate how its users experience the internet,” said Weinberg.
Virgin Mobile said Friday it plans to begin offering its $20-per-month payLo mobile plans Saturday. The two plans, offered in partnership with Walmart, would allow a subscriber access to either unlimited voice minutes or text messages. The unlimited voice plan would also include 50 text messages per month, while the unlimited text plan would include 50 minutes of voice per month, Virgin Mobile said. Subscribers on the payLo plans can choose between two devices -- the Kyocera Kona or the Samsung Montage. Additional voice minutes cost 10 cents per minute, while each additional text message costs 15 cents, Virgin Mobile said. Picture messages cost 25 cents per message, while Internet access costs $1.50 per megabyte (http://wervirg.in/1qq7n05).
AT&T’s voluntary commitment to offer wireless broadband service to 13 million new customers as a result of planned DirecTV acquisition “precedes any election it might make to access Connect America Fund Phase II support to make broadband service available in high cost areas,” the American Cable Association told FCC Wireline Bureau officials Wednesday, an ex parte filing posted Friday in docket 10-90 said (http://bit.ly/1oPdbTy). AT&T has said it’s one of the concessions it will make as part of its DirecTV acquisition (CD June 18 p5). The FCC should be ready for issues that might arise if it turns out some locations included in the merger commitment might also be high-cost areas where AT&T is eligible to receive support, ACA said. The association commended the bureau for making “great strides” in developing a cost model that accurately estimates the cost of a modern network, but criticized insufficiently precise inputs for the cost of money and the take rate to estimate revenue.
CTIA President Meredith Baker explained the importance of spectrum to the wireless industry, as well as the need for expediting the wireless siting process, in a meeting Monday with FCC Commissioner Ajit Pai. Baker also emphasized that “Title II regulation is not necessary to preserve an open Internet,” said an ex parte filing on the meeting posted Thursday by the FCC in docket 12-268 (http://bit.ly/1pnVCaY). Baker also discussed the importance of the pending TV incentive auction, the filing said. “CTIA urged the Commission to continue to recognize the unique technical, operational, and competitive differences that apply to mobile wireless broadband, whether it is the dependence on government for access to a critical source of capacity, spectrum, or the need to actively manage networks to ensure a high quality experience for consumers that seek access to the Internet wherever and whenever they want,” the group said. Scott Bergmann, vice president-regulatory affairs, accompanied Baker at the meeting.
CTIA applauds rather than criticizes CEA for a report on the economic impact of unlicensed spectrum, CTIA President Meredith Baker said Thursday in a blog post (http://bit.ly/1jAQ7jy). “Washington loves a good fight, a good debate,” she said. “There isn’t one here.” Both unlicensed and licensed spectrum are critical, Baker said. “Both are needed by our country to continue the amazing investment and innovation that makes our wireless ecosystem the envy of the world.” CEA said in a report released Monday unlicensed spectrum generates $62 billion a year for the U.S. economy (http://bit.ly/1nktNvU).
The FCC Wireless and Wireline bureaus Thursday extended by 30 days the deadline for winning bidders of Mobility Fund Phase I support to file annual reports with the commission. The bureaus said they took the step without being formally asked to do so by anyone outside the agency. Reports were due July 1 and they are now due July 31, the bureaus said in a Thursday public notice (http://bit.ly/1qwwYH9). All winners must file reports for the first five years after funds are authorized.