T-Mobile fired back at AT&T and Verizon for suggesting its spectrum holdings should be subject to the FCC spectrum screen relative to the C-band auction (see 2009180029). “Incredibly, last week the two behemoths, who dwarf T-Mobile in revenues and market cap, actually teamed up to petition the government to thwart T-Mobile’s competitive access to wireless spectrum,” blogged CEO Mike Sievert Tuesday. “AT&T and Verizon are facing real competition from a company that is committed to shaking up the status quo and bringing true choice to consumers.” T-Mobile said in a filing that neither has the standing to challenge its 600 MHz leases. “Verizon sat out the 600 MHz spectrum auction and AT&T sold its 600 MHz licenses to Columbia Capital,” T-Mobile said: “Their efforts to raise spectrum screen issues concerning T-Mobile’s acquisition of spectrum going forward are not really about the Columbia Capital leases or protecting the mobile wireless marketplace from excessive spectrum aggregation. Rather, they are efforts to slow down T-Mobile as a competitor and to game the upcoming C-band auction.” AT&T 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.
Fred Moorefield, deputy chief information officer for command, control and communications, defended DOD’s recent request for information on spectrum sharing, which industry and FCC officials say raised questions as the commission moves toward a vote on the 3.45-3.55 GHz band. Moorefield spoke at NTIA’s virtual spectrum policy symposium. At a similar summit a year ago, officials promised the administration would soon release a national spectrum policy; it hasn't been unveiled.
FCC Chairman Ajit Pai’s proposal for the 3.45-3.55 GHz band faces questions at the FCC as the Trump administration refocuses on a national 5G network and DOD seeks comment on spectrum sharing. Together, they raise questions about the FCC order and Further NPRM set for a vote Sept. 30 (see 2009090048), industry and government officials said in interviews. Some think Rivada Networks' campaign for a national wholesale network is playing a role (see 2008280061). Tuesday is an administration spectrum symposium.
T-Mobile is likely to be the dominant bidder in a 2.5 GHz auction expected next year, as it fills out substantial holdings in the band. T-Mobile got the spectrum when it bought Sprint and said in August it’s adding the band to its network at 600-700 sites weekly (see 2008070026). T-Mobile asked last week to move forward on an auction next year. AT&T questioned whether T-Mobile’s holdings exceed the spectrum screen.
A Thursday House Communications Subcommittee hearing is expected to feature partisan dueling assessments of the FCC's performance under Chairman Ajit Pai, capping off subcommittee Democrats’ often-rancorous relationship with commission Republicans this Congress (see 1901160031). Communications Democrats said the hearing will focus on FCC “lost opportunities” during President Donald Trump’s administration, including actions they say widened the digital divide (see 2009100066). The hearing begins at 10 a.m.
The FCC made the right decision on Ligado, FCC Chairman Ajit Pai told Incompas Tuesday during its virtual conference. Pai stressed FCC focus on 5G, saying the upcoming C-band auction will be “massive.” Pai said more is coming, including on the 5.9 GHz band and a follow-up order on 6 GHz (see 2008200040). “We have a lot of big irons in the fire,” he said.
Verizon’s proposed buy of Tracfone from America Movil for as much as close to $7 billion (see 2009140010) appears to show Verizon growing its prepaid wireless market in a big way. The early read is it should have few problems getting clearance from regulators. Tracfone is the largest U.S. reseller of wireless services, with 21 million subscribers.
Lawmakers will probably not be able to repeal the 2012 Spectrum Act's mandate for public safety to move off the 470-512 MHz T band until Congress’ post-election lame-duck session because of the likely lack of a viable legislative vehicle before that time, officials and lobbyists told us. FCC Chairman Ajit Pai simultaneously circulated an auction NPRM and urged Congress in May to repeal the mandate (see 2005150053) because the sale was “a bad idea.”
Verizon appears to be girding for a fight with T-Mobile over whether its spectrum holdings should preclude the “uncarrier” from bidding in the C-band auction, which starts Dec. 8, industry officials said. Verizon would flip the script on T-Mobile, which lobbied against Verizon and AT&T holdings seeking preferential treatment for competitors in the TV incentive auction (see 1408130047).
The results of the FCC citizens broadband radio service auction announced Wednesday 2009020029) were largely as expected, with Verizon and major cable operators dominating (see 2007200049). Dish Network also came in big, which was more of a surprise (see 2008260055). Southern California Edison also gobbled up priority access licenses (PALs).