Wireless Spectrum Auctions

T-Mobile and Sprint are expected to deploy 5G separately as they wait for their proposed deal to be cleared, industry lawyers and former FCC officials said Tuesday. One big question is the pending high-band auctions, with the first action of 28 GHz licenses to start Nov. 14 (see 1804170036). Executives from both carriers emphasized on a call Sunday they will continue their push toward 5G independently.

AT&T said the Wireless ISP Association is incorrect in recent arguments on dangers of large license sizes in the 3.5 GHz citizens broadband radio service band (see 1804240067). WISPA disagreed with AT&T claims that census-tract-sized licenses are unworkable for carriers. “WISPA’s argument rests on the incorrect assertion that Priority Access License (PAL) holders will have a degree of certainty from the Spectrum Access System (SAS) that allows them to mitigate the impact of small licensing areas and, effectively, aggregate up to larger regions,” AT&T countered in a Thursday filing in docket 17-258. WISPA’s claim is “incorrect and contradicted by the FCC’s rules,” AT&T said. “Even if an algorithm could be developed to maximize common channel assignments to the satisfaction of all stakeholders, common channels cannot be guaranteed because of auction and incumbent issues in any event. And those problems get even worse when channel assignments are remapped because of dynamic events.”

Verizon officials said AT&T’s December proposal for a temporary, voluntary repack of the 38.6-40 GHz band (see 1712120010) would be both difficult and time-consuming to put into effect. The Verizon officials met with Wireless Bureau Chief Donald Stockdale and others at the FCC. “Verizon fully supports a fair and timely reorganization of the 39 GHz band,” said a filing in docket 14-177. “We do not believe, however, that an AT&T voucher auction would accomplish either goal. Instead the proposal would diminish the value of incumbent licenses and delay putting those spectrum licenses to early use for 5G to the benefit consumers.” Carriers plan to make initial 5G deployments in high-band spectrum like the 39 GHz band.

The Competitive Carriers Association and CTIA jointly proposed a compromise on the size of priority access licenses in the 3.5 GHz citizens broadband radio service band. They "reached an agreement that the Commission should license PALs using Metropolitan Statistical Areas (MSAs) in the top 306 Cellular Market Areas (CMAs) and use county-based geographic area licenses in the remaining 428 CMAs,” said a filing posted Monday in docket 17-258. “This compromise proposal paves the way for swift action while balancing the needs of the wide range of stakeholders that are expected to participate in the 3.5 GHz auction,” the groups said. “It promotes investment in the band and provides an opportunity for parties to acquire PAL spectrum in areas that best fit their business models and investment plans.” Wireless ISP Association President Claude Aiken objected, saying the CBRS proposal would “effectively put up a ‘large bidders only’ sign at the door and turn away innovators and small operators serving rural Americans.” The FCC should beef up competition for 3.5 GHz spectrum in the largest metropolitan statistical areas by reducing license areas in the top 10 percent of MSA markets to counties, Charter Communications said in a docket 17-258 filing Monday about the wireless proposal. It said it's investing in 3.5 GHz trials itself in markets in California, Colorado, Florida, Kentucky, Michigan and North Carolina.

A draft item hit the FCC's top floor Thursday on Northstar Wireless and SNR Wireless applications for new licenses in the AWS-3 bands, said the circulation list updated the next day. The designated entities and Dish Network recently restructured their relationship after the FCC clawed back spectrum awarded at a discount to those DEs in a major spectrum auction (see 1804040004). The Commission said the proceeding is restricted, so officials were tight-lipped. One analyst has said the agency may again nix the DEs' attempt to get an approximately 25 percent discount on the several billion dollars of spectrum.

The FCC approved 5-0 an NPRM that proposes to bar use of money in any USF program to buy equipment or services from companies that “pose a national security threat” to U.S. communications networks or the communications supply chain, as expected (see 1804110032). Commissioners said the NPRM was expanded while on the eighth floor to ask additional questions, including on what the FCC could do beyond the USF. Small carriers, especially members of the Rural Wireless Association, expressed concerns because many use devices and equipment provided by Chinese suppliers Huawei and ZTE. For other ZTE news Tuesday: 1804170018.

The FCC approved a public notice on the first auctions of millimeter-wave spectrum for 5G. The Tuesday vote was 5-0, though Commissioner Mignon Clyburn concurred, at what she later said is her last meeting, because of her concern the notice should ask additional questions (see 1804170021). A day earlier, CTIA said the U.S. is falling behind China in the race to the next generation of wireless (see 1804160056). U.S. carriers have been focused on high frequency bands in their initial rollouts of 5G with tests underway and commercial launches expected later this year.

On the eve of the FCC vote on an NPRM on the security of U.S. communications networks, CTIA warned in a report Monday that the U.S. has fallen behind China in the race to 5G. Commissioners also will vote Tuesday on a public notice on the first auctions of millimeter-wave spectrum for 5G. The auction notice appears likely to get a 5-0 vote, industry and agency officials said Monday.

FCC Commissioner Mike O'Rielly said rural telco subsidies could be increased somewhat while better fiscal discipline is brought to the overall USF mechanism. The "real issue" for USF is the budget, he said, and while the high-cost program has been relatively "stagnant," other programs have grown over the years. "We can't constantly double" funding for E-rate, Lifeline and rural healthcare, he said at an NTCA policy conference Monday, noting he was pushing for a hard Lifeline budget. O'Rielly, who was interviewed by NTCA CEO Shirley Bloomfield, wants a "happy medium" for high-cost funding: rural telcos may not get everything they want but "hopefully" regulatory changes could "get you most the way there" and remove "barriers to your offerings."

CTIA officials urged the FCC to provide additional clarity in its public notice, set for a vote by commissioners Tuesday, on rules for upcoming 24 and 28 GHz auctions (see 1803270052). CTIA met Monday with Wireless Bureau staff, said a filing in docket 18-85. “CTIA urged the Commission to consider the implications for the agency and auction participants if the Commission’s anti-collusion rules apply across the two auctions and include applicants in both,” the group said. “We also discussed opening bids and reserve prices, incumbent licenses in the 28 GHz band, and encumbered licenses in the 24 GHz band, urging the Commission to ensure that the Draft Spectrum Frontiers Auctions Public Notice is sufficiently clear for the public to respond to the questions raised therein.” CTIA also urged the FCC to start auctioning other high-frequency bands needed for 5G, especially the 37, 39 and 47 GHz bands. The Competitive Carriers Association, meanwhile, reported on a meeting with Will Adams, aide to Commissioner Brendan Carr. As the FCC takes up the auction notice it “must protect against the anti-competitive effects of a first-mover advantage in critical [millimeter-wave] bands, and ensure that all carriers are afforded an opportunity to access 5G spectrum at auction,” CCA said. CCA also “encouraged the FCC to expeditiously address remaining barriers to infrastructure siting processes to further deployment of next-generation and 5G technologies.”