Does AT&T need more spectrum? It’s complicated

Sprint believes it has caught AT&T in a ‘gotcha!’ moment. While AT&T is using the threat of a spectrum crunch as justification to buy T-Mobile, AT&T is trying to sell off mobile broadband airwaves it already owns. In a letter to the Federal Communications Commission, Sprint basically calls AT&T a hypocrite, citing AT&T’s intended sale of its 2.3 GHz spectrum as another reason why the FCC should deny AT&T and T-Mobile’s $39-billion deal.

While Sprint has levied plenty of dead-on criticisms against AT&T/T-Mobile deal in the past, this time the operator has overshot the mark. Sprint ignores the fact that the 2.3 GHz Wireless Communication Services (WCS) spectrum bands are a mess. Ever since the licenses were auctioned off in 1997, every major operator owning WCS has tried to find some use for that spectrum, but they all came up with squat. Power restrictions in the band make it useless for any kind of mobile voice and broadband service. And attempts by AT&T and BellSouth (which AT&T acquired) to use it for fixed wireless DSL-replacement technologies fell flat after numerous trials. The specific C-block and D-block licenses AT&T is trying to sell in partnership with NextWave are even more problematic. They straddle opposite ends of the Satellite Digital Audio Radio Service (SDARS) band used by Sirius XM Radio, requiring any network to have a guard band to prevent interference with Sirius’ radio signals. That means the already small allotment of capacity in each block, 5 MHz, is cut in half.