Spectrum

Speedy 5G networks may be on the horizon, but consumer demand for wireless broadband is so intense that mobile companies like AT&T and Verizon need alternatives now — even if it means sharing airwaves with each other and with rival tech firms like Google. 5G networks are far from being fully deployed.

This paper explains how Mobile Network Operators (“MNOs”) are transforming their networks to meet the 5G challenge and the implications this transformation has for the structure of the cellular industry and broadband competition more generally. Among the many changes both large and small, the transition to 5G is driving MNOs to embrace: (a) agile management of diverse spectrum assets; (b) small cells; and (c) softwarization and virtualization. I explain how the 5G Future will be a converged market in which promoting the survival of fewer but stronger MNOs will promote the healthy evolution

If America’s tech and telecom giants have an opinion about T-Mobile US’s plan to reshape the wireless industry by taking over Sprint , most are keeping it to themselves.Few large companies have gone on record to back or oppose the roughly $26 billion merger, which would combine the country’s No. 3 and No. 4 carriers. Fewer still are using their lobbying prowess to fight the deal behind the scenes. “I don’t think you’re going to have any entity that has motive and means to oppose this deal” among big business, said Blair Levin, an industry analyst at New Street Research.

With the seismic shift toward smart cities and the internet of things (IoT), reliance on wireless and wireline broadband infrastructure is becoming greater and greater. As various wireless providers maintain that the roll out of 5G internet service is approaching, and the IoT proliferates with the connection of millions of new smart devices to the internet, cities must face the reality that to meet the increasing demands of residents, more wireless facilities and infrastructure must be deployed.

Sprint and T-Mobile continue to work to obtain regulatory approval for their proposed merger. But, according to some analysts, don't expect the discussion to turn to conditions—including divestitures—until later in 2018. “We would not be surprised to see opponents refrain from offering conditions in these initial rounds of filings,” wrote the analysts at Wall Street firm New Street Research. “Generally, the opposition wants to push to kill the deal and only offer conditions as a last resort.

The Federal Communications Commission announced the conclusion of the Connect America Fund Phase II (CAF-II) auction, which offered $1.98 billion in funding for rural broadband. The bidding began July 24th. The FCC will issue a public notice in a few business days outlining the results. Winning bidders have agreed to provide broadband service at the lowest cost in unserved and underserved areas in 20 states, formerly served by larger price cap carriers (although those same carriers could conceivably be the auction winner).

CTIA and T-Mobile are repeating their calls for larger licensed areas and 10-year spectrum license terms. T-Mobile and CTIA representatives met with Federal Communications Commissioner Michael O’Rielly Legal Advisor Erin McGrath to discuss the 3.5 GHz Citizens Broadband Radio Services (CBRS) proceeding. In 2017, both filed petitions with the FCC requesting that it revisit the 3.5 GHz rules that were originally passed in 2015. Their meetings with O’Rielly’s team are notable given that he’s been leading the charge to revise the rules and has made recommendations to FCC Chairman Ajit Pai.

In 2015, the Federal Communications Commission adopted new rules for the 3550-3700 MHz band (3.5 GHz Band), opening the path to new commercial wireless use of this band. Now the Wireless Telecommunications Bureau and the Office of Engineering and Technology of the Federal Communications Commission seek comment on the results of those rule changes, as directed by Congress in the Spectrum Pipeline Act. The FCC is required to give notice and provide an opportunity for public comment before submitting to Congress no later than November 2, 2018 a report containing:

Sen. Mike Lee (R-UT) sent a letter to the Department of Justice and Federal Communications Commission highlighting testimony presented at the June 27, 2018 hearing on the proposed T-Mobile US and Sprint merger. The letter draws the agencies’ attention to important issues raised by witnesses appearing at the hearing, including the resulting increase in market concentration in the wireless telecommunications industry, and the potential for the merger to create a more competitive wireless carrier.