Carriers Say 3GPP Arguments Show Need for Reconsolidating Lower 700 MHz Band
Smaller wireless carriers are ramping up pressure on the FCC to take steps as part of any approval of AT&T’s buy of 700 MHz spectrum from Qualcomm to reconsolidate the lower 700 MHz band, enhancing their ability to get handsets at reasonable prices. The Rural Cellular Association, C Spire and Vulcan Wireless have been particularly active, holding a series of meetings at the FCC in recent weeks.
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In the latest salvo, the smaller carriers told FCC staff in recent meetings that AT&T appears to be applying pressure on 3GPP, the international standard setting body for LTE, to effectively take spectrum from them to facilitate AT&T deployment in the Qualcomm spectrum. The argument is complicated and highly technical and is laid out in some detail in a recent filing by RCA (http://xrl.us/bmk4ew). One official representing the smaller carriers said they are essentially making a “takings” argument.
"Just last month, Ericsson submitted a proposal to 3GPP regarding the specifications for use of the Lower D and E blocks of 700 MHz (the Qualcomm spectrum) in the manner proposed by AT&T,” RCA said. “That proposal ... assumes that Band Class 12 operators will sacrifice over 5 percent of the uplink portion of the band class (or over 16 percent of the uplink of the Lower C block) to enable AT&T’s proposed deployment on the Qualcomm spectrum.” Band class 12 takes in the Lower A-, B-, and C-Blocks of the broader 700 MHz band -- including the licenses purchased by smaller carriers in the 700 MHz auction. “In other words, Ericsson’s proposal concludes that Band Class 12 licensees must sacrifice a 1 MHz guard band to facilitate AT&T’s proposed deployment for the Lower D and E blocks,” RCA said.
A Vulcan filing made Wednesday said AT&T’s attempts to “manipulate” the 3GPP even before it owns the Qualcomm spectrum show why the FCC needs to require as part of approving the AT&T/Qualcomm deal that devices developed for AT&T for 700 MHz spectrum work across all lower 700 MHz paired blocks (http://xrl.us/bmk4f9). “AT&T’s prior 700 MHz spectrum purchases (which were large relative to other wireless operators) accorded AT&T a significant level of market power as a buyer of 700 MHz equipment,” Vulcan argued. “Through predatory market leverage, AT&T has used that market power to elicit private standards body (3GPP) decisions on 700 MHz-specific interference and interoperability issues that, in turn, have raised barriers to market entry by others (namely A block licensees).” Vulcan warned that AT&T’s purchase of still more 700 MHz spectrum “will broaden and further entrench AT&T’s power to perpetuate its influence over 700 MHz equipment manufacturers and the 700 MHz standards-setting and interference-resolving processes, thereby blockading or delaying entry and raising prospective rivals’ costs."
An AT&T spokesman cited a recent AT&T filing in response to the complaints (http://xrl.us/bmk5db). “We addressed competitors’ and 700 MHz A-block license holders’ latest attempts to override the 4G standards-setting process and mandate new banding requirements for AT&T,” carrier representatives said in a recent meeting with FCC officials. “We explained, as an initial matter, that because we are not purchasing 700 MHz A block licenses in this transaction, such a demand is not specific to this merger and inappropriate. We also explained that interoperability is achievable through the use of multi-mode, multi-band chipsets, like those currently being developed by Qualcomm, that will support many frequency bands to accommodate unique carrier needs.”