A Tuesday Senate Appropriations Financial Services Subcommittee hearing on the FCC’s spectrum auctions program was a venue for subcommittee Chairman John Kennedy, R-La., to again dig into his longstanding concerns about the plan for 3.7-4.2 GHz C band, as expected (see 2005270034). Kennedy and other subpanel members discussed the issue throughout three rounds of questions for FCC Chairman Ajit Pai. Kennedy forecasted another hearing soon. Pai and some subcommittee members highlighted the need for additional telecom funding as part of COVID-19 aid (see 2006160049).
FCC Chairman Ajit Pai is to testify at a Tuesday Senate Appropriations Financial Services Subcommittee on oversight of the FCC’s “spectrum auctions program,” including the planned auction of frequency on the 3.7-4.2 GHz C band, as expected (see 2006040060). Subcommittee Chairman John Kennedy, R-La., earlier signaled interest in exploring the auction implications of Intelsat's filing for bankruptcy (see 2005140028). Lobbyists expect Kennedy and other members to have questions about the FCC’s approval of Ligado’s L-band plan. The Ligado issue drew the ire of the House and Senate Armed Services committees, including a push for related language in the FY 2021 National Defense Authorization Act (see 2006110026). The hearing begins at 10 a.m. in 124 Dirksen, Senate Appropriations said.
T-Mobile “has a clear spectral advantage in the race to 5G given its head start to plug and play mid-band spectrum” after gaining 2.5 GHz spectrum from Sprint, said Wells Fargo analyst Jennifer Fritzsche in a note to investors Friday. “We expect this advantage will incentivize” AT&T and Verizon “to be aggressive in the upcoming mid-band spectrum auctions,” she said. Fritzsche cited data by Allnet Insight that AT&T has 175 MHz and Verizon 115 MHz of sub-6 GHz spectrum, versus 324 for T-Mobile.
Attacks against 5G infrastructure and disinformation on health risks (see 2005150022) imperil rollout of services needed to ensure Europe's recovery from the pandemic, speakers said at a Wednesday webinar hosted by GSMA and the European Telecommunications Network Operators' Association. 5G is the "missing link" between Europe's digital strategy and its environmental plans, but misinformation risks significantly delaying the deployment, said ETNO Director General Lise Fuhr. There have been about 142 site attacks in 10 EU countries and the U.K., which had the most attacks, said GSMA Head-Europe Afke Schaart. It's not just posting misinformation; it has become more mainstream, with a global 5G protest planned for Saturday, she said. The impact includes some countries postponing spectrum auctions, Schaart said. One way to fight back might be for local politicians to get involved in decisions on deploying 5G, said Member of European Parliament Miapetra Kumpula-Natri, of the Progressive Alliance of Socialists and Democrats and Finland. Local authorities should be given information about the technology so citizens can trust their decisions on installations. She urged governments planning 5G spectrum allocations to focus on coverage rather than revenue to allow operators to build out. Deployment has challenges, said Susana Solis Perez, of the Renew Europe Group and Spain. These include lack of demand for 5G services, environmental issues, electromagnetic frequency (EMF) considerations, network security and the risk of widening the digital divide. There's no time to waste in building infrastructure in response to COVID-19, she said. EU's e-commerce directive is "too weak" to attack disinformation, said Lisa Felton, Vodafone Group head-data, services and consumer regulation. The upcoming EC proposal for a digital services act should include legal requirements for actions online platforms must take in response to disinformation if they don't want to lose safe harbor liability protections, she said. The EC believes public health protection is paramount, and recommends maximum EMF exposure limits with wide safety margins based on scientific data, said Andreas Geiss, DG Connect head of unit-spectrum policy. The EC wants to focus debate on those facts and evidence, seeking to inform people about EMF and the benefits of 5G, he said. There's little evidence RF radiation causes cancer, affects fertility, results in changes to development, cognition or behavior, harms the immune systems or causes electrohypersensitivity, said Frank de Vocht, University of Bristol senior academic in epidemiological and public health. The idea that 5G affects the immune system is the basis for 5G/COVID-19 theories "haunting" social media, but there's no plausible theory on how millimeter waves could do that, he said.
With the FCC citizens broadband radio service auction set to start, the agency is under pressure to further delay the auction because of credit market issues. Markets remain jittery due to the pandemic, a problem for small players that may need to raise the money to bid. The FCC postponed the auction in March to July 23, from June 25, because of COVID-19 concerns (see 2003250052).
T-Mobile said it had the most postpaid net adds of any of U.S. carrier in Q1, reporting for the first time since completing the buy of Sprint. Front-line employees “stepped up big” during COVID-19, but the company is feeling financial effects, new CEO Mike Sievert told analysts Wednesday. “As the nation starts to emerge” after COVID-19, the company expects customers to be looking for better value in a weakened economy and T-Mobile will benefit, he said. Temporary closing of many company stores meant lower subscriber adds, service and equipment revenue “in the very short term,” he said. Chief Financial Officer Braxton Carter said profit took a $117 million hit due to the cost of closing the Sprint deal, with an $86 million hit from the pandemic. T-Mobile will have a better view of pandemic effects as Q2 continues, he said. The company plans to provide full-year guidance on the Q2 call, Carter said. “What a crazy quarter this was,” Sievert said: “The crisis has highlighted how crucial connectivity has become to our daily lives.” The carrier is deploying 5G on 2.5 GHz spectrum from Sprint in New York and Philadelphia and 5G on 600 MHz now covers 215 million customers, T-Mobile said. Chief Technology Officer Neville Ray said T-Mobile will soon deploy on the 2.5 GHz band across the Northeast. Revenue was $8.7 billion, up 5% over last year, and profit $951 million, also up 5%. T-Mobile reported record low postpaid churn of 0.86% and free cash flow of $732 million headed into the first of two big spectrum auctions this year.
The FCC should consider making permanent temporary spectrum assignments it approved in reaction to COVID-19, and in a way that treats everyone fairly, Commissioner Brendan Carr said during a Forum Europe webinar Tuesday. Carr said U.S. networks are doing well under this “surprise stress test.”
CBRS Alliance President David Wright and telecom lawyers said Thursday they are hopeful the COVID-19 pandemic won't further affect the citizens broadband radio service auction. The FCC last month delayed it to July 23 (see 2003250052). Commissioners Mike O’Rielly and Jessica Rosenworcel had noted concerns about further pandemic-related effects on the CBRS sale and other spectrum auctions (see 2003310049).
The COVID-19 epidemic is clouding the timeline for the Senate to act on Commissioner Mike O’Rielly’s renomination to a second full FCC term. He nonetheless stands a good chance of confirmation, communications sector officials and lobbyists told us last week. President Donald Trump renominated O’Rielly in March to a term ending in 2024 (see 2003180070). O’Rielly’s current term ended in June. He would have to leave in January absent a Senate vote.
The FCC delayed two spectrum auctions, due to COVID-19, in an announcement Wednesday.