Wireless Telecommunications

Apparently, T-Mobile US and Sprint plan to announce a merger agreement without any immediate asset sales, as they seek to preserve as much of their spectrum holdings and cost synergies as they can before regulators ask for concessions. While it is common for companies not to unveil divestitures during merger announcements, T-Mobile’s and Sprint’s approach shows that the companies plan to enter what could be challenging negotiations with U.S. antitrust and telecommunications regulators without having made prior concessions.

It was reported recently that some of the Justice Department’s antitrust staff were skeptical about the deal, which would combine the third and fourth largest U.S. wireless carriers. However, regulators can only begin reviewing a corporate merger once it has been agreed to and announced. T-Mobile and Sprint are preparing a negotiating strategy to tackle demands from regulators regarding asset sales, including the divestment of some of their spectrum licenses after their deal is announced, apparently.

The vast majority (96%) of rural young people age 14 to 22 years old have cellphones, including 17% who get mobile service from a local provider and 75% who get service from a national carrier, according to a rural youth technology survey conducted by the Foundation for Rural Service. Nearly the same amount (95%) have internet connectivity at home, and a substantial portion of them get connectivity from a local provider. Just under one in three respondents get internet connectivity from a satellite provider. That 95% number is considerably higher than overall home internet take rates that other surveys have found, underscoring how much more important the internet is for households that include teens and young adults.

The survey also included questions about how rural youth use technology — information that could become increasingly valuable as those young people become technology decision makers. About two-thirds of respondents to the FRS survey would consider living in a rural area soon after graduation.

[Commentary] Frontier's recent revelation that it intends to use fixed wireless to address the rural broadband availability problem using the second phase of the Federal Communications Commission’s Connect America Fund (CAF-II) program is set on a simple goal: extend broadband to areas where deploying wireline facilities is prohibitive. What’s interesting about Frontier is that other than being a supplier of backhaul, the company is mainly a wireline carrier.

Can it effectively overcome engineering and regulatory challenges to complement rural wireline broadband with wireless? There’s both regulatory and technical challenges. Putting aside these challenges, it's hard to not to see the benefits wireless broadband could bring for rural providers. These telcos can use a complementary approach to address remote areas that are still difficult to address even with CAF-II funding today.

Masayoshi Son is taking another run at his dream to create a US mobile phone heavyweight, but a revived deal would be scrutinized by many of the same officials who batted down his last attempt. Staff attorneys inside the Justice Department’s antitrust division are likely to view any plans to merge his Sprint with T-Mobile US as a threat to competition in the mobile market, according to three people familiar with the staff’s thinking.

If they recommend to sue to block the deal, that would leave it to President Donald Trump’s new antitrust chief, Makan Delrahim, to decide whether to fight the tie-up, or overrule them and approve it. If he decides to oppose a deal, the Justice Department would file a lawsuit in federal court seeking to block the proposed tie-up and would need to persuade a judge that the combination is anticompetitive. The antitrust chief isn’t obligated to follow the staff’s position, but typically has. Delrahim, who was confirmed to his post at the antitrust division Sept. 27, hasn’t commented publicly on how he views the mobile market.

As the Chairman of the Federal Communications Commission, I have a special interest in the progress that was made in communications and technology policy during the Reagan Administration. It was an executive order signed by President Reagan that first made the Pentagon’s Global Positioning (GPS) system available for civilian use. FCC Chairmen who served during the Reagan Administration were incredible leaders and visionaries. Mark Fowler and Dennis Patrick each did a fantastic job leading the agency. They moved aggressively to eliminate unnecessary rules and implement President Reagan’s deregulatory philosophy. They set a high bar for those who came after them—and I strive for that bar every day.

The Reagan FCC eliminated the so-called Fairness Doctrine. This misnamed government dictate suppressed the discussion of controversial issues on our nation’s airwaves and was an affront to the First Amendment. The Reagan FCC also built the political foundation for auctioning licenses to spectrum—a free-market innovation blasted back then and widely accepted today. The Reagan FCC introduced “price cap” regulation, reducing government’s role in micromanaging profits and increasing consumer welfare. And the Reagan FCC set the stage for much of the innovation that we see today. In 1985, for example, it had the foresight to set aside what were generally thought to be “junk” airwaves for anybody to use—what we call “unlicensed” spectrum. And entrepreneurs put it to work. Thanks to the FCC’s vision, we now use unlicensed services every day, every time we access Wi-Fi or use Bluetooth or check a baby monitor. Consider this 1985 quote from Mark Fowler, President Reagan’s first FCC Chairman—a quote that applies today: “We want to eliminate, as much as we can, government regulation of the telecommunications marketplace so as to permit present players to provide new and innovative services to consumers and likewise permit new players to come in and compete.” That’s basically our approach today.

The Federal Communications Commission recently asked for input on whether wireless is now a substitute for wired broadband. The Communications Workers of America says a definitive "no," and has offered up a report in an effort to back up the assertion. That came in comments to the FCC. In its comments, CWA said its "expert report," from CTC Technology & Energy, found that mobile was not an adequate substitute, but was and would remain a complement to faster and more robust wired broadband.

The Federal Communications Commission has granted an experimental license for Project Loon, led by Google's parent company Alphabet, to help provide emergency cellular service in Puerto Rico.

“More than two weeks after Hurricane Maria struck, millions of Puerto Ricans are still without access to much-needed communications services,” said FCC Chairman Ajit Pai. “That’s why we need to take innovative approaches to help restore connectivity on the island. Project Loon is one such approach. It could help provide the people of Puerto Rico with access to cellular service to connect with loved ones and access life-saving information. I’m glad the FCC was able to grant this experimental license with dispatch and I urge wireless carriers to cooperate with Project Loon to maximize this effort’s chances of success.” Project Loon is a network of balloons that provides connectivity to users on the ground. Now that the experimental license has been approved, it will attempt to initiate service in Puerto Rico. Project Loon obtained consent agreements to use land mobile radio (LMR) radio spectrum in the 900 MHz band from existing carriers operating within Puerto Rico.

Over 30 Democratic Members of Congress sent a bicameral letter to Federal Communications Commission Chairman Ajit Pai opposing his efforts to lower broadband Internet standards for millions of Americans. The letter comes in response to a recent Notice of Inquiry that suggested the FCC will consider significantly lowering national advanced broadband standards from the current level of 25 Mbps download / 3 Mbps upload down to 10 Mbps download / 1 Mbps upload.

“As you well know, reliable, high-speed broadband is essential to economic development, public safety, and a vibrant quality of life. Ensuring every home, school, and business has adequate access to the Internet is essential to unlocking the innovative potential of all Americans,” wrote the lawmakers. “Simply moving the goalposts is not a policy solution, and weakening the definition of high speed internet is a disservice to the rural and tribal communities the FCC has an obligation to serve.” “At this time, mobile access at 10 Mbps download/1 Mbps upload is not a reasonable replacement for fixed advanced broadband at home. This fact is well known to any child seeking to complete a homework assignment, small business owner hoping to develop an Internet presence, or individual completing an online job application or communicating with their doctor.”

Microsoft announced it is teaming up with communities in six states to to invest in technology and related jobs in rural and smaller metropolitan areas. Company president Brad Smith launched the TechSpark program in Fargo (ND), a metropolitan area of more than 200,000 people that includes a Microsoft campus with about 1,500 employees. Smith says the six communities are different by design and not all have a Microsoft presence.

Smith says TechSpark is a multi-year, multi-million dollar investment to help teach computer science to students, expand rural broadband and help create and fill jobs, among other things. The other programs will be in Texas, Virginia, Washington, Wisconsin and Wyoming. “This is really a blueprint for private-public partnerships,” said Gov Doug Burgum (R-ND), himself a former Microsoft executive.

Global Harmonization & US Leadership in Wireless Technologies. While some in this country may eschew global harmonization, and I understand that our market position means we have the option of going it alone or in coordination with a handful of other countries, offering commercial services on the same frequencies around the world has many benefits for US consumers and providers. On the consumer side, there is the ability to use your devices and have the same wireless experience at home and abroad. At the same time, the economies of scale created by marketing products internationally enables research, development, and manufacturing costs to be widely dispersed, promoting investment and innovation while reducing the cost of devices and services for Americans.