Spectrum

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.

The Department of Justice believes three national 5G wireless providers are needed to ensure robust competition, a position that provides a big boost to the proposed $26.5 billion merger of Sprint and T-Mobile. The No. 3 and No. 4 wireless carriers have said they don’t have the finances independently to quickly bankroll an expensive rollout of the next generation in wireless technology — leaving just Verizon and AT&T to offer a 5G network.

A looming Federal Communications Commission deadline could spur telecom companies to hurry up deal talks before restrictions on their discussions tie their hands. The FCC said in a public notice that it would stop accepting applications on Sept. 18 for two planned wireless-airwave auctions in 2018. Rules bar applicants from talking with each other from that date until the second auction ends and its winners make their down payments.

Dish’s Charlie Ergen said that the Federal Communications Commission should support his company’s efforts to build out a 5G wireless network because it would aid the United States’ technological position on the global stage. "The goal that they [at the FCC] have—to help the United States be the No. 1 in 5G—and the goal that we have at Dish, is exactly the same,” Ergen said. “And so we're very pleased with that.

The Federal Communications Commission proposed rules to implement a recent Congressional directive to reimburse certain Low Power TV (LPTV), TV translator, and FM stations for costs incurred as a result of the FCC’s incentive auction.

Auction procedures to speed the deployment of 5G services in the 28 GHz (27.5-28.35 GHz) and 24 GHz (24.25-24.45, 24.75-25.25 GHz) bands. The FCC will offer the 28 GHz and 24 GHz band licenses through two auctions with separate application and bidding processes for each auction. The application windows will run concurrently. The bidding for the 28 GHz UMFUS licenses (Auction 101) will commence on November 14, 2018, and the bidding for the 24 GHz licenses (Auction 102) will commence after the bidding concludes in Auction 101.