Wireless Telecommunications

On November 5, the Federal Communications Commission gave its final OK, approving—with conditions—the transfer of control applications filed by T-Mobile and Sprint. T-Mobile's acquisition of Sprint was first announced April 29, 2018, touting the capacity to rapidly create a nationwide 5G network while offering lower prices, better quality, unmatched value, and greater competition. Is that where we've ended up? Although T-Mobile's acquisition of Sprint has gotten approval from both the U.S. Department of Justice and the FCC, the deal isn't done yet.

Dish Networks Chairman Charlie Ergen pointed out that DISH’s new 5G network will be a greenfield network and should not be evaluated in the same way as an incumbent’s network. He said DISH’s network would cost less than other carriers’ networks because DISH plans to use next-generation technology, which relies much more on software than on expensive, proprietary hardware. “The cost structure goes down,” he said. “The vast majority of capex for the incumbents is not for 5G, it’s to maintain the legacy.

T-Mobile plans to light up its nationwide 5G on Dec 6, laying a foundation for the New T-Mobile’s massive network that will have the capacity to deliver breakthrough connectivity initiatives to millions if the T-Mobile/Sprint merger closes in 2020.

Baltimore’s (MD) streets are dotted with more than 600 “small cell wireless facilities” on streetlights and utility poles, making the city one of the first areas in MD to welcome the new technology. The sometimes box-like equipment delivers cellular signals faster than traditional cell phone towers, paving the way for 5G service. The wireless industry and local governments have faced off on the issue in the General Assembly, and could again in 2020.

Sen Ron Wyden (D-OR) urged the Federal Communications Commission to secure next-generation, 5G telephone networks against hackers, scam-artists and foreign spies. In a letter addressed to FCC Chairman Ajit Pai, Sen Wyden demanded the administration require all wireless carriers to implement improved cybersecurity measures – including upgrading encryption and authentication features – on 5G telephone networks.

The Federal Communications Commission issued a Memorandum Opinion and Order, Declaratory Ruling, and Order of Proposed Modification approving—with conditions—the transfer of control applications filed by T-Mobile and Sprint. The FCC found that the transaction will help close the digital divide and advance US leadership in 5G, the next generation of wireless connectivity. Specifically, T-Mobile and Sprint have committed within three years to deploy 5G service to cover 97% of the American people, and within six years to reach 99% of all Americans.

The T-Mobile-Sprint merger will end a golden age in wireless that helped bring to market lower prices and more innovative services. It will mean an end to the competitive rivalry that reduced prices by 28% during the last decade. Similarly, the pressure to support unlimited data plans and free international roaming will fade. Offers to pay early termination fees to help families switch to plans that fit their lives will fall by the wayside.

AT&T Mobility, LLC, will pay $60 million to settle litigation with the Federal Trade Commission over allegations that the wireless provider misled millions of its smartphone customers by charging them for “unlimited” data plans while reducing their data speeds.

The Federal Communications Commission began subsidizing home phone lines in 1985 to provide “the opportunities and security that phone service brings” to people who cannot afford it, according to the FCC’s website. The Lifeline program started including cellphone plans in 2005. Currently, subscribers receive $9.25 per month to put toward a discounted cellphone plan designed by provider companies. For some, that means a cap of 250 voice minutes and 2 GB of mobile data.

It’s fair to say that a Council on Foreign Relations appearance by the Chairman of the Federal Communications Commission is out of the ordinary. But these are extraordinary times. We’re at a pivotal moment in the evolution of communications technology. Across America and around the world, private companies have begun rolling out the next generation of wireless technology—commonly known as 5G. For all the opportunities that 5G will unlock, it will also create new challenges. Chief among these is the main subject of my remarks: network security.