Ericsson will have products ready for commercial deployment in the 600 MHz band in Q3, with tests to start before that, a spokeswoman emailed. Earlier this week, questions arose whether T-Mobile and others that bought licenses in the TV incentive auction will have trouble finding devices and network equipment as they deploy in the newly opened band (see 1704170042). “Ericsson is committed to the 600 MHz market and so are the 600 MHz licensees,” the spokeswoman emailed Wednesday. “Besides the focus that T-Mobile has demonstrated towards providing service in this band as early as the end of this year, 600 MHz is also starting to gain regional harmonization as Mexico and Canada, for instance, take further steps to provide services in this band. We also expect the allocation of the 600 MHz for mobile terrestrial service to gain global momentum now that the incentive auction has drawn to a successful conclusion.”
Dish Network's spectrum holdings could be "too much of a good thing," reducing its strategic options, Macquarie analyst Amy Yong said in a note to investors Tuesday. Macquarie said in a merger or acquisition, Dish's spectrum holdings -- including the $6.2 billion worth gained in the broadcast incentive auction (see 1704130056) -- could carry some baggage, as near-term carrier spectrum supply and demand is balanced, with AT&T, T-Mobile and Sprint seemingly having ample spectrum assets. A Dish/carrier merger "would likely generate regulatory uncertainty," it said. Meanwhile, 5G is using fiber and densification, and much AT&T and Verizon focus has been on fiber and millimeter wave spectrum, not on the 600 MHz auction, it said.
With Verizon and Sprint sitting out the TV incentive auction and AT&T buying relatively few 600 MHz licenses, some observers say interoperability issues could loom. But others say they have few worries and T-Mobile, with more than 70 million subscribers, is big enough to drive the market. T-Mobile stressed in a news release last week that equipment makers are looking to the band.
T-Mobile and Dish Network emerged as the big story of the forward part of the TV incentive auction, based on their high bids in the TV incentive auction (see 1704130049), analysts and other industry observers said Thursday after the FCC released results (see 1704130040). The other big news on the forward auction concerned which parties didn’t play -- AT&T bid $910 million for 23 licenses and Verizon sat the auction out. Comcast bid less than expected, $1.7 billion for 73 licenses through CC Wireless. T-Mobile won 1,525 licenses for $8 billion. Dish got 486 licenses for $6.2 billion through ParkerB.com Wireless, more than expected. Comcast came away with 73 blocks and $1.7 billion in licenses through CC Wireless. Those forward auction bidders bought the spectrum of 175 TV stations, leaving close to 1000 to be repacked by 2020, the FCC said.
The Competitive Carrier Association filed in opposition to NAB’s FCC petition for reconsideration of the post-incentive auction transition plan, CCA said in a news release Wednesday. “NAB has tried before -- and failed before both the FCC and the DC Circuit Appeals Court -- to delay new broadband investment in the 600 MHz band, and I strongly encourage the Commission to reject any attempt to push back” the congressionally based 39-month repacking time frame, said CCA President Steven Berry. The NAB petition is “nearly 1,000 days past the deadline” to challenge the 2014 auction order, CCA said. The transition plan was issued as a public notice in January (see 1701270064). The NAB petition “wrongfully claims that the FCC failed to perform a comprehensive analysis in determining repacking timelines and procedures,” CCA said, calling it ”nothing more than a regurgitation of its former baseless arguments.” The planned 39-month repacking time frame “will benefit consumers, the industry and the economy, and I strongly encourage the FCC to dismiss NAB’s petition to avoid any further delay,” Berry said. NAB didn’t comment.
FCC Chairman Ajit Pai is seen as receptive to a petition from NAB (see 1703170055) for changes to the post-incentive auction repacking plan, but any changes to the repacking timeline are likely to face considerable pushback from industry, said broadcast officials and analysts in interviews. Though broadcasters repeatedly praised Pai, his previous positions in their favor -- on ATSC 3.0, and his perceived plans to roll back media ownership rules -- haven’t faced strong opposition from a competing industry. On the repacking, NAB’s requests for a looser timeline are diametrically opposed to calls for a faster transition from wireless providers such as T-Mobile, said Roger Entner, analyst at Recon Analytics: “They need that spectrum tomorrow!”
Global efforts at spectrum harmonization alternately came under fire and were held up for applause by speakers Tuesday at Satellite 2017. The 2015 World Radiocommunication Conference raised questions about whether there's a fundamental breakdown of the ability to harmonize, said Dynamic Spectrum Alliance President Kalpak Gude. GSMA Senior Spectrum Adviser Veena Rawat said harmonization "is not dead." She said one constant issue with harmonization is the long period that can come between allocation of spectrum for a service and the actual rollout of those services in that band. She cited 600 MHz harmonization through the ITU in 2009, with countries today still transitioning their broadcasting.
U.S. Cellular disclosed it won 600 MHz licenses worth at least $327 million in the TV incentive auction, in an SEC filing. “With the completion of the Clock Phase of the auction, U.S. Cellular is now committed to purchase 600 MHz spectrum licenses on which it submitted bids for a minimum amount of $327 million, subject to increase as the FCC completes the Assignment Phase of the auction, which is pending,” the filing states. “U.S. Cellular expects to be obligated to pay for the total committed amount, less the $143 million upfront payment made in June 2016, in the second quarter of 2017. U.S. Cellular currently expects to make such payment using cash on hand and/or borrowings under its revolving credit agreement.”
The TV incentive auction's assignment phase, in which winning bidders will bid for the actual spectrum blocks in which they will deploy service, is a relatively important part of the auction, said industry lawyers and analysts. The FCC released a public notice Tuesday on the final stage of the auction, saying bidding in the assignment phase will start March 6 and should be over by the end of the month (see 1702140064). Industry observers said the A and G blocks are expected to be the least attractive to winning bidders, especially in urban areas. Meanwhile, some broadcast consultants and a firm affiliated with Dell's founder met with Chairman Ajit Pai and others at the FCC.
Scott Bergmann, CTIA vice president-regulatory affairs, met with Nese Guendelsberger, acting chief of the FCC Wireless Bureau, to make the group’s case for streamlined cell-siting rules. Earlier this month, CTIA President Meredith Baker made similar arguments to FCC Chairman Ajit Pai (see 1702030048). “CTIA highlighted the importance of sound policies at the federal, state, and local levels to facilitate the rapid and efficient deployment of wireless infrastructure to support 4G LTE and 5G networks,” said a filing in docket 16-421. It also encouraged the FCC to adopt the proposals in its recent small-cell public notice, the group said. “CTIA also discussed the importance of facilitating an adequate pipeline of additional spectrum to address consumers’ explosive demand for innovative wireless services,” the association said. “CTIA noted the success to date of the 600 MHz Incentive Auction and expressed its desire to continue to work with the Commission in partnership toward a speedy, workable post-auction repacking process.”