AT&T asked the FCC to adopt a spectrum screen for 2.5 GHz-6 GHz. In 2016, AT&T opposed FCC decisions to impose low-band and high-band spectrum screens (see 1607080026). “It makes no sense to maintain them and not apply a similar screen for mid-band spectrum,” the company petitioned Wednesday. “Mid-band licenses are the most important input in any wireless provider’s portfolio of 5G spectrum assets -- and, not coincidentally, are also the most likely to become the subject of anticompetitive foreclosure strategies.” Current rules “do little to prevent” the potential for anti-competitive behavior involving mid-band since “they apply only the highly diluted overall spectrum screen to acquisitions of additional mid-band spectrum, inaccurately treating that spectrum as though it were fungible with other spectrum, while applying more granular scrutiny to acquisitions of spectrum below 1 GHz even though that spectrum actually is fungible with other bands,” AT&T said. Nothing “stops” carriers “from overpaying for yet more mid-band spectrum” because the existing screen “cannot prevent providers with outsized mid-band assets from engaging in a foreclosure strategy designed to keep rivals from obtaining the mid-band assets they need.” So “act through provider-specific review of post-auction long-form license applications, not through ex ante, provider-agnostic caps on spectrum acquired in any given auction." A new screen “is not a cap on how much spectrum any entity can hold,” blogged Executive Vice President-Federal Regulatory Relations Joan Marsh. “It is a filter that the FCC can use to identify spectrum acquisitions that trigger more detailed consideration of the potential for competitive harms.” The petition criticizes the FCC for “not requiring any spectrum divestitures” by T-Mobile in buying Sprint, which “trivialized its overall spectrum screen.” AT&T and T-Mobile trailed Verizon in bidding that ended in February for C-band spectrum (see 2102180041). The FCC, T-Mobile and Verizon didn’t comment.
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 the FCC setting up processes for challenging C-band accelerated clearing certification (see 2108040060), satellite and wireless interests made suggestions in docket 21-320 Monday. Verizon, warning of delayed deployment of 5G, said concerns need to be raised now with the relocation coordinator instead of via certification challenges. It urged the Wireless Bureau to clarify that the 30-day period in the challenge and reply process for announcing cert deficiencies applies to initial and refiled certifications. T-Mobile said the bureau should clarify when overlay licensees can use the 3.7 GHz spectrum in the partial economic areas where they won the auction, since there's potential for approval of different certifications at different times by various satellite operators. It said if one satellite operator submits a validated cert by the relevant accelerated relocation deadline, auction winners should be allowed to access their licensed spectrum by that deadline. It argued against challenges to refiled certs being limited to the new information, since the amendment is to replace the original. Make clear that if a C-band satellite operator can address a challenge without amending that cert, it may do so, Eutelsat asked. It said the bureau should require each challenger to demonstrate how it qualifies as a “relevant stakeholder,” and staff should let satellite operators and challengers seek confidential treatment for eligible information that's in their agreement. Intelsat said there seems to be no requirement that challenges focus on potential deficiencies specific to the C-band order's requirements and not to matters outside of phase 1 C-band clearing implementation. It sought clarity on how the bureau will screen for the entities that are “relevant” and have standing to challenge satellite operator certs. Not making that clear could "open the door to abusive challenges based on competitive or commercial motivations," it said. The process the FCC proposes could stretch the time frame for determining the validity of a certification by weeks to years, SES said, urging instead sticking with 60 days for resolution. It said amended or refiled cert shouldn't trigger a new challenge cycle.
Bidders may not have all the data they want, but likely what they need, to assess bids in the upcoming 3.45 GHz auction, experts told us. The FCC and NTIA have been working behind the scenes to provide more data on DOD radars that must be protected after the auction, which starts Oct. 5. CTIA has continuing concerns. Analysts said uncertainty could mean lower bids.
Ligado expects major wireless carriers to have continuing mid-band spectrum needs after last year’s C-band and the upcoming 3.45 GHz auction, CEO Doug Smith said during a Wireless Infrastructure Association webinar Wednesday. Part of that will be addressed by Ligado’s L band, he said. “There will be a shortage of uplink spectrum,” he predicted. “Not all spectrum works the same,” he said, noting 3.45 and C band are “great for capacity … and downlink speeds,” but the 1.6 GHz L band is better for uplink. Smith said that based on current trends, uplink traffic will continue to increase relative to downlink. “Where we are headed as an industry is to get the most out of every megahertz of spectrum that we have,” he said. Ligado has largely gotten past regulatory challenges, Smith said. “It was a long and thorough process” at the FCC, he said. “That was all necessary. It all led to last year’s 5-0 unanimous vote. … It’s unfortunate that some continue to question it.” If any new issue emerges, “we’ll address that too,” he said. Smith also sees a growing market for private networks. “We’re just getting started,” he said: “We have a good amount of spectrum and we are willing to put it to use specifically for a customer.” Some companies want full control of a network “and we can provide that,” he said. Ligado plans investments in infrastructure, including tower leases, fiber and backhaul, he said. “As we deploy our spectrum, it has to get on the infrastructures,” he said. The L band will play a role in reaching unserved areas, Smith said. He sees both “a tremendous amount” of collocations and new builds. “We have to play in all geographies,” he said. “A new carrier is music to the ears of my members who own infrastructure,” said WIA President Jonathan Adelstein, who interviewed Smith.
The Wireless ISP Association urged a single-round, sealed-bid 2.5 GHz auction format, in a call with FCC Office of Economics and Analytics staff. There's “strong interest among WISPA’s members in participating,” said a filing posted Friday in docket 20-429. WISPs seek to buy licenses “for targeted areas.” The auction's “lack of fungibility contrasts with other spectrum auctions where the licenses are typically offered for an unencumbered area,” the group said, “in equal-size spectrum sizes.”
Comcast's Peacock, with 54 million signups, is rolling out to Europe later this year to Sky's 20 million customers, and the next aim is global availability of the streaming service, said the company Thursday. Comcast executives waved off the need for more mergers and acquisitions as a prerequisite to become a viable international streaming power, during a call with analysts. "I love the company we have," and more organic growth is ahead without further acquisitions, said CEO Brian Roberts. "I think we do have the scale. We don't need M&A."
AT&T and Verizon's Cellco Partnership were by far top recipients of C-band flexible use overlay licenses in Auction 107. Per our breakdown of an FCC Wireless Bureau public notice Friday, Verizon received 3,518 licenses and AT&T 1,620. Others included U.S. Cellular with 253 licenses, T-Mobile (141) and Canopy Spectrum (83). Acting Chairwoman Jessica Rosenworcel called the licenses "the sweet spot for 5G deployment [due to] the right mix of capacity and propagation that will help us reach more people in more places faster. With these licenses in hand, more carriers can deploy mid-band 5G." The C-band auction was approved under former Chairman Ajit Pai and was “no walk in the park,” Commissioner Brendan Carr said Monday. “We must do more than implement the tough spectrum decisions the FCC made over the last few years if we are going to extend U.S. leadership in 5G,” he said: “We must move forward with a number of new spectrum proceedings too.”
5G has a role to play in infrastructure and closing the digital divide, FCC acting Chairwoman Jessica Rosenworcel said on an Axios webinar Friday, as Congress debates whether wireless will be a major part of infrastructure spending plans (see 2107150046). Much of the discussion has been on extending the reach of fiber networks, Rosenworcel said. “We really need to have robust connections to those towers … to make sure our wireless networks can deliver all that 5G has to offer.” About 50 million Americans are on 5G , Rosenworcel said. She noted the importance of 5G to IoT. Next-generation machine learning and artificial intelligence are “where the real 5G revolution comes,” she said. Rosenworcel said the FCC “made a mistake” last administration putting too much emphasis on high-band spectrum, repeating a criticism she made as a minority commissioner. Millimeter-wave 5G requires “lots of ground-based facilities,” which are “really costly” to deploy, she said. Mid-band is “the sweet spot” and “how we’re going to deploy 5G,” she said. “We’re doing a lot to fix where we were.” The FCC started the C-band auction, the first mid-band auction for 5G, under former Chairman Ajit Pai (see 2012080040). "The last FCC took unprecedented action to advance American leadership in 5G,” Pai emailed now. “A key part of that plan was freeing up spectrum for the commercial marketplace,” he said, noting the citizens broadband radio service and C-band auction. “Notably, today's leadership voted against each and every one of these measures,” he said: “The agency is now going backward on mid-band by putting on ice the 2.5 GHz auction and the 4.9 GHz initiative." Commissioner Brendan Carr "is proud that he voted in favor of freeing up more than six gigahertz of spectrum for licensed 5G services," a spokesperson emailed: “There is work ahead if this Commission is going to match the pace and cadence it hit with mid-band spectrum over the past few years.” Rosenworcel says the 2.5 GHz auction would come following the 3.45 GHz auction. Mid-band means more 5G outside urban centers, she said now. "That future is not quite here yet.” Broadband is becoming “critical infrastructure,” said Qualcomm CEO Cristiano Amon. Governments “should care,” he said. “I have not met a single government that does not worry about how they can build 5G and how fast.” Amon also noted the debate in Congress: “For the first time, you have a cellular technology that can really replace, or augment, fiber deployment,” which will be easier to build in rural areas. Amon predicted most major U.S. cities will have 5G in 2021, and it will cover the “majority of the country” by Dec. 31, 2022. Most Manufacturing Institute members report they hope to use 5G in their plants by year's end, said Executive Director Carolyn Lee: “They also recognize that the speed with which 5G is deployed will really impact their ability to be globally competitive.”
OneWeb and advocates for opening 12 GHz to 5G butted heads Wednesday whether there's wireless demand here. “Where is CTIA [support], where is Verizon [support]?" said OneWeb North American Director-Government and Regulatory Engagement Eric Graham in a Broadband Breakfast virtual panel Wednesday. He said their silence and AT&T opposition to opening the band indicate a relative lack of wireless interest. Replied RS Access CEO Noah Campbell, NCTA says its members want access, and AT&T shows interest in an auction if there's a mobile allocation. Dish Network Executive Vice President-External and Legislative Affairs Jeff Blum said it's "telling" that non-geostationary orbit (NGSO) satellite interests didn't offer their own technical study in the docket 20-443 comment cycle (see 2107080055) refuting the RS Access-commissioned study showing satellite/terrestrial sharing of the 12.2-12.7 GHz band is feasible. Graham said the burden of proof is on 5G petitioners to make the case for sharing. Blum and Campbell focused on the need for the spectrum for 5G. Graham argued terrestrial service is a harmful interference risk to NGSO fixed satellite service (FSS) downlinks to user terminals. Graham said the 12 GHz swath is part of a 2 GHz-wide band of Ku spectrum available for satellite use, but terrestrial uses in the 10.7-11.7 GHz band makes it more difficult if not impossible for NGSO FSS constellations. Blum said the band isn't inherently needed for NGSO-provided broadband, citing Amazon's planned Kuiper constellation not using that spectrum. He and Campbell disputed the interference threat. Now that the record's closed, 5G interests will seek to engage with NGSO interests, said Blum.
No broadband-related actions President Joe Biden asked the FCC to take in his Friday executive order on competition can easily proceed until there are additional commissioners to secure a Democratic majority, EO supporters and opponents told us. The directive encourages the FCC to at least bring back rescinded 2015 net neutrality rules and act against some other communications sector practices. Congressional Democrats have become increasingly frustrated by Biden’s slow nominations process (see 2106160056). (For the EO's tech provisions, see 2107090060.)