The FCC approved 4-0 rules for the nation’s first auction of high-band spectrum for 5G. Commissioners Jessica Rosenworcel and Mike O’Rielly raised questions about the approach. The commission will auction the 28 GHz band first, with an auction starting Nov. 14, with a 24 GHz auction to follow immediately. Members also approved a Further NPRM aimed at making additional high-band spectrum available for 5G.
The FCC adopted a one-touch, make-ready policy and other pole-attachment changes in a broadband infrastructure order and declaratory ruling approved 3-1 by commissioners at a Thursday meeting. The item also said the agency will pre-empt state and local legal barriers to deployment, including express and de facto moratoriums that prohibit entry or halt buildout. "No moratoriums. No moratoriums. Absolutely no moratoriums," said Commissioner Mike O'Rielly, who also noted some targeted edits to OTMR parts of a draft. Commissioner Jessica Rosenworcel agreed with OTMR in concept but partially dissented over "deficiencies in our analysis."
Apple is the latest tech interest to decry new U.S. tariffs related to intellectual property disagreements, and those recently proposed by the Trump administration on Chinese goods (see 1807260024 and 1807240031). Tariffs "show up as a tax on the consumer and wind up resulting in lower economic growth” that can sometimes bring about "significant risk of unintended consequences,” said CEO Tim Cook on a quarterly earnings call Tuesday after regular U.S. markets closed.
Pandora shares closed up 15 Wednesday at $7.73 following its earnings report after regular U.S. markets closed Tuesday showed double-digit growth in advertising and subscriptions. Analysts Wednesday hailed the results, still noting a long road to profitability and much competition. “With management struggling to fine-tune the strategy and a highly competitive environment where Spotify and Apple have clear momentum, we believe Pandora remains a long way from sustainable profitability,” said Dougherty & Co.'s Steven Frankel.
It’s clear Russian adversaries have gotten better at masking social media influence campaigns, Senate Intelligence Committee Vice Chairman Mark Warner, D-Va., told reporters after a hearing on foreign interference. A day earlier, Facebook announced it removed 32 pages and accounts potentially linked to Russian disinformation efforts there and on Instagram. Like Warner, Facebook suggested the account holders, who weren't identified as Russian, are using more sophisticated methods (see 1807310067) for manipulating the platforms than the malicious behavior during the 2016 election.
Critics are mobilizing opposition to the Trump administration’s third round of proposed tariffs on Chinese imports, which also drew Apple and other tech concern this week (see 1808010069). More than 300 people in various industries filed requests in docket USTR-2018-0026 by the Friday deadline to appear at Office of the U.S. Trade Representative hearings, virtually all to testify against the tariffs. USTR didn’t comment.
Despite Sprint complaints about its future as a stand-alone company if takeover by T-Mobile falls through (see 1806270068), the carrier said Wednesday it's on track to offer 5G in the first half of next year. Sprint also reported generally positive results in the quarter ended June 30. Sprint had postpaid net adds of 123,000 for its 12th consecutive quarter of growth. The company had profit of $176 million, its third profitable quarter in a row, and operating income of $815 million. Revenue was $8.13 billion. T-Mobile also reported, saying it had the best Q2 in company history.
The two 5G items set for a vote by commissioners Thursday are expected to get 4-0 votes, FCC and industry officials said. The items are expected to be approved largely as circulated by Chairman Ajit Pai last month (see 1807110053). The items address the 39 GHz band and lay out the rules for the FCC’s first high-band auctions. They are important but “mostly noncontroversial,” said a lawyer with wireless carrier clients: “The fireworks might be reserved” for the infrastructure item (see 1807260036). The FCC didn't comment.
Charter Communications probably will feel pressure to talk deal after the New York Public Service Commission took back OK of the Time Warner Cable buy, experts said in interviews. Some said the PSC probably lacks authority to undo the deal. A Public Knowledge attorney said the PSC is within its rights. Charter will defend itself in court, if necessary, CEO Thomas Rutledge said Tuesday (see 1807310062).
The FCC is considering some revisions to a draft order on one-touch, make-ready and other pole-attachment policies aimed at facilitating broadband deployment, an informed source said Wednesday. Commissioners are looking at making "tweaks" on "details" in response to a "laundry list" of industry requests, but the main parts of the combined OTMR/pole draft order and declaratory ruling against state and local moratoria are expected to stick, the person said. "It wouldn't surprise me if there are tweaks," said an FCC official, noting heavy lobbying on the 102-page draft (see 1807300040 and 1807260036). Other commission officials didn't comment.