Some wireless industry officials came away disappointed from CTIA’s 5G Summit Thursday (see 1904040048) that FCC Chairman Ajit Pai didn’t offer new details or make a more explicit commitment on the C band. CTIA President Meredith Baker said at the event the band offers the best opportunity for making more mid-band spectrum available quickly. Pai, who spoke at the end, said the FCC is looking closely at the band and repeated earlier comments that it’s unusually complicated. Pai said he was still “sitting down with engineers, economists and lawyers” working through the future of the band.
T-Mobile promised to continue to offer Lifeline service, should it get the OK to buy Sprint. “New T-Mobile has no contemplated end date to its participation in the Lifeline program, and the company has no intention to stop offering Lifeline in any state where T-Mobile and Assurance currently offer it,” the buyer wrote Rep. Tony Cardenas, D-Calif. T-Mobile also countered Communications Workers of America complaints the company's buy of Iowa Wireless last year was bad for broadband in that state. CWA raised the issue in the context of the T-Mobile/Sprint deal. “IWireless’s 2G and 3G service was vastly inferior to the quality of T-Mobile’s mobile broadband,” T-Mobile told an aide to FCC Commissioner Jessica Rosenworcel, said a filing posted Monday in docket 18-197. “IWireless had no low-band spectrum and relatively limited 4G LTE coverage. T-Mobile is already investing more than $70 million to transform the network by building out its 600 MHz spectrum and introducing 5G-ready sites throughout Iowa.” T-Mobile and Sprint engineering staff told the FCC team reviewing the deal the companies' "three-year network migration process was designed to minimize customer disruption and provide superior user experience at all stages of the migration.” They said their combination "would drive down the cost of capacity and coverage by making more efficient use of existing spectrum and other network assets.”
Despite all of the buzz about 5G, American Tower’s “view” is 4G “will continue to serve as the primary network for most of us for quite some time,” Senior Director-Investor Relations Igor Khislavsky told a Raymond James investment conference Monday. For the next five to 10 years, “if not longer, 4G is still going to be the underlying foundation of most mobile networks,” he said. Expect 4G “to be enhanced with 5G applications over time, especially when you get into new types of use cases for 5G,” including edge computing, autonomous driving and augmented reality, he said. As new spectrum gets deployed in the 600 MHz and 2.5 GHz bands, “equipment that's utilizing that spectrum gets placed on our towers incrementally, and that's where we benefit,” he said. The year 2021 seems a “reasonable” forecast for when the industry will “start seeing some meaningful deployments” of 5G, said Khislavsky. “The standard-setting process for 5G actually isn't complete yet,” he said. “Once you see some 5G handsets in the marketplace, once you obviously see those standards being set," it will be "a fairly rapid deployment,” he said.
T-Mobile “remains optimistic and confident” regulators will approve its buy of Sprint, as reviews reach their final stages, CEO John Legere told analysts Thursday as the company reported Q4 results. The New York Public Service Commission applied jobs conditions as it voted 3-0 Thursday to clear T-Mobile/Sprint in the agency’s consent agenda, which requires no discussion. The deal is likely to be approved by the end of the first half of the year, Legere said: “If not in the bottom of the ninth inning, it’s in the late innings.”
The FCC’s partial reopening of the equipment authorization system, announced Friday (see 1901180040), will provide only limited relief, Commissioner Jessica Rosenworcel again warned Tuesday. The federal shutdown could slow FCC work on 5G in general, particularly on clearing mid-band spectrum, she said. Rosenworcel spoke at an Internet Innovation Alliance session on a potential incentive auction for the 2.5 GHz educational broadband service band, with a goal of raising money to close the “homework gap.”
The four major wireless carriers continue to invest in their networks, but the outlook for tower companies remains mixed, Macquarie’s Amy Yong wrote investors. “Verizon and AT&T have sent mixed signals to towers” with Verizon cutting capital expenditures twice in 2018 and AT&T signing a deal with Tillman, a competitor to the major players, she said Friday. “Both are focused on efficiencies and are allocating investments outside of macro-sites. However, capex is likely to stay steady to meet network demands.” Verizon is expected to spend $16 billion on capital expenditures and AT&T $23 billion in 2019, she said. “On the flip side, T-Mobile and Sprint remain in investment mode with T-Mobile likely to hit the high-end” of their $4.9 billion-$5.3 billion capex range and Sprint likely to spend $5 billion-$5.5 billion, she said. “T-Mobile is actively building out 600 MHz, while Sprint is investing across the board in macro-sites, 2.5 GHz build-out, and densification through small cells.”
Microsoft raised concerns about Sennheiser's petition for an NPRM on innovation and development of new wireless mic technologies such as wireless multichannel audio systems (WMAS) technology (see 1812280053). Don't allow use of WMAS technology on an unlicensed basis without complying with other Part 15 rules, Microsoft asked in RM-11821. “Licensed Part 74 wireless microphone operations, including WMAS, should continue to be prohibited in the 6 megahertz unlicensed channel within the 600 MHz band duplex gap,” Microsoft sought. “Continue to prohibit unlicensed WMAS operations throughout the broadcast television bands and the duplex gap, if such operations are inconsistent with other existing Part 15 technical rules.”
The FCC’s first high-band spectrum auction, for the 28 GHz band, had $690 million in provisionally winning bids when it closed for the holidays. It was still unclear whether it will reopen Thursday, an issue expected to be addressed in the FCC’s Wednesday shutdown public notice. Industry analysts said the numbers so far, though far lower than some previous spectrum auctions, aren’t surprising. The AWS-3 auction ended in 2015 at a record $44.9 billion and the 600 MHz TV incentive auction two years later at $20 billion.
A Tuesday House Communications Subcommittee hearing on implementation of the Repack Airwaves Yielding Better Access for Users of Modern Services (Ray Baum's) Act FCC reauthorization and spectrum statute is expected to emphasize the law's language to aid the broadcast incentive auction repacking process. The hearing also will likely be an opportunity for House Commerce Committee Chairman Greg Walden, R-Ore., to showcase the act as the committee's top telecom policy achievement this Congress, before the end of the GOP majority in the chamber, lawmakers and communications lobbyists said. The act's language was included in the FY 2018 federal spending law (see 1803230038).
The FCC granted 26 licenses won by NewLevel in the 600 MHz band incentive auction. The company's application was found complete and in compliance, "and there are no petitions to deny," said an Incentive Auction Task Force and Wireless Bureau public notice Friday. NewLevel bid $296.5 million net. One more application is under review, said the PN, citing previous 600 MHz license grants.