Wireless Telecommunications

Apparently, Sprint has entered into exclusive talks with Charter Communications and Comcast as the cable companies explore a deal that could bolster their plans to offer wireless service, according to people familiar with the matter. Sprint Chairman Masayoshi Son and the cable firms have entered into a two-month, exclusive agreement for discussions through late July, putting merger talks with T-Mobile US on hold. One arrangement that has been considered is for Charter and Comcast to invest in improving Sprint’s network in exchange for favorable terms to offer wireless service using the carrier’s network. Such a deal could involve the companies taking an equity stake in Sprint. The cable companies already have such a network-resale agreement with Verizon Communications, but the Sprint deal could provide much better terms. While thought to be the much less likely scenario, the talks also include the possibility for the cable companies to jointly acquire Sprint. Sprint has a market value of $32 billion and $32.6 billion of net debt.

In what they concede on the surface is a surprising alliance, major Internet service providers have aligned with the Federal Trade Commission and the Federal Communications Commission against AT&T Mobility over the issue of the FTC's ability to enforce edge provider privacy. That came in an amicus brief to the US Court of Appeals for the Ninth Circuit.

"At first glance, amici’s position might seem surprising—four leading corporations are arguing in favor of restoring the FTC’s authority to regulate their non-common carriage activities," they said. "On closer inspection, however, this position aligns with the companies’ desire to reinstate a predictable, uniform, and technology-neutral regulatory framework that will best serve consumers and businesses alike." Signing on to that brief were Charter, Comcast, Cox, and Verizon.

As you may have heard, within the United States we've been working actively to build upon the experience of WRC-15 and towards the decisions to be made at WRC-19. We've recently completed the world's first voluntary incentive auction, making the 600 MHz frequency band available for mobile broadband use, while still ensuring a vibrant broadcasting community.

Together with our neighbors in Canada and Mexico, we have worked to facilitate the success of both the TV and wireless bands and ensured a seamless transition at our shared borders. We applaud the leadership of our counterparts in Mexico and Canada at the ITU and encourage other administrations to consider 600 MHz as they seek additional spectrum for wide-area mobile broadband deployments.

The United States is ahead of the global curve when it comes to delivering “broadband for all.” But we too face challenges. First, a quick snapshot: 93% of Americans have access to fixed broadband with a speed of at least 25 Mbps down. An estimated 73% of Americans subscribe to fixed broadband at home. And approximately 80% of Americans use smartphones. When you dig deeper into those numbers, however, you begin to see some real divides. In urban areas, 98% of Americans have access to high-speed fixed service. In rural areas, it’s only 72%. 93% of Americans earning more than $75,000 have home broadband service, compared to only 53% of those making less than $30,000. Too many identify with the lines in One of Us, in which ABBA sang: “One of us is lonely / One of us is only / Waiting for a call.”

Every American who wants to participate in our digital economy should be able to do so. Access to online opportunity shouldn’t depend on who you are or where you’re from. I’m pleased to say that since my first days as Chairman, the Federal Communications Commission has taken significant actions to make that a reality.

A planned municipal broadband sale of BVU Optinet is in jeopardy, thanks to a disagreement regarding wireless tower assets. One of the early pioneers in municipal broadband, Bristol (VA) based BVU Optinet was put up for sale back in February 2016 for $50 million to Sunset Digital Communications. That deal may now be in trouble.

A government oversight board, the Virginia Coalfield Coalition (VCC) approved the sale of BVU Optinet to Sunset Digital, but with conditions that Sunset now objects to. The board wants operational control of the wireless tower network currently operated by BVU Optinet transferred to a different service provider, Scott County Telephone Cooperative. BVU operates 22 wireless towers throughout the region, and is valued at $14 million. There is a difference of opinion between the VCC and Sunset as to whether the tower network was a part of the original $50 million deal. Sunset Digital is calling foul, and says that condition could kill the deal. “Those are conditions that we [previously] said were not acceptable,” said Jeff Mitchell, an attorney for Sunset Digital.

The Citizens Broadband Radio Service (CBRS) has not even been born yet, but already major industry players want to change its basic character. CBRS, as its name implies, was conceived and approved by the Federal Communications Commission a couple of years ago as a broadband service for locally-focused businesses. The regulatory paradigm included both a large swathe of generally authorized access (also termed “licensed by rule”) channels that would be made available opportunistically to any entity and licensed channels made available on a census-tract basis for generally non-renewable three year terms. This generated quite a bit of opposition from larger carriers who insisted that the small license areas and short, non-renewable terms would make the band unsuitable for significant investment.

Yet the FCC stuck to its vision for this “citizen”-oriented service and adopted rules which are now effective, though users cannot be up and operating until the spectrum managers begin administering access to the spectrum.

Federal Communications Commission Chairman Ajit Pai says he did not discuss his proposal to roll back Title II classification of Internet service providers at a meeting at the White House but did talk about the building blocks of a wireless future—spectrum and infrastructure. Asked about the meeting by a reporter following the FCC's public meeting—particularly given Chairman Pai's criticism of what he thought as too close ties between the White House and Tom Wheeler on that issue—the chairman said they had an "excellent conversation" with tech and telecom leaders and his input was sought on the rollout of 5G and the Internet of Things.He called it a "very fruitful" conversation about spectrum and infrastructure and the like and that he looked forward to working with all interested parties.

As to FCC independence, he said the FCC was still an independent agency, but there were ways to collaborate with others in the Administration, before launching into a string of nautical references to make his point. He said he wanted to make sure "we are steering in the right direction," calling them "all sailors in the same boat" and saying that it was an "all hands on deck effort" to make sure wireless innovators have the necessary tools.

[Commentary] The week of June 12, the European Union Directorate-General for Competition released a report on the effects of zero-rating practices on competition in broadband markets, commissioned from consultants DotEcon, Aetha, and Oswald & Vahida. The report reviewed both the theoretical arguments regarding zero-rating and competition (including work by myself and Roslyn Layton) and actual experiences with the practice from European Union countries.

The report’s findings are extremely informative, given the extent to which the purported harms from zero-rating alarmed a large number of United States advocates in the past. Notably, this resulted in the February 2015 Open Internet Order requiring case-by-case analysis of alleged breaches of a zero-rating general conduct standard in agreements between broadband internet access service operators and end consumers.

[Bronwyn Howell is a faculty member at the School of Management, Victoria University of Wellington, New Zealand.]

[Commentary] In order for us to expand prosperity and extend economic opportunity to more Americans, we must remain on the cutting edge. This means that government at all levels must focus on removing barriers to innovation and ensuring that technological advances aren’t strangled by bureaucratic red tape.

For starters, we’re taking aggressive action to speed the roll-out of next-generation wireless networks. But to get to the 5G future that will make the Internet of Things fully possible, we’ll need much more infrastructure than what today’s networks demand. If America is to lead the world in 5G, we need to modernize our regulations so that infrastructure can be deployed promptly and at scale. Another Federal Communications Commission priority has been making the agency more agile and responsive.

Federal Communications Commission Chairman Ajit Pai announced that the following items are tentatively on the agenda for the July Open Commission Meeting scheduled for Thursday, July 13, 2017:

1. Call Authentication Trust Anchor – The Commission will consider a Notice of Inquiry that seeks comment on methods to authenticate telephone calls to further secure our telephone networks against illegal robocallers. The Notice seeks comment on implementing authentication standards for telephone calls, as well as the Commission’s role in this process and other public policy considerations. (WC Docket No. 17-97)
2. Advanced Methods to Target and Eliminate Unlawful Robocalls – The Commission will consider a Notice of Inquiry that explores methods by which reassigned telephone number data could be made available to callers to avoid making unwanted calls to consumers. (CG Docket No. 17-59)
3. Protecting Consumers from Unauthorized Carrier Changes and Related Unauthorized Charges – The Commission will consider a Notice of Proposed Rulemaking outlining steps to further curtail slamming and cramming. (CG Docket No. 17-169)
4. Rural Call Completion - The Commission will consider a Second Further Notice of Proposed Rulemaking that proposes rule changes to better address ongoing problems in the completion of long-distance telephone calls to rural areas. The Second Further Notice of Proposed Rulemaking proposes to (1) adopt new rural call completion requirements for covered providers, and (2) eliminate the Commission’s existing rural call completion recording, retention, and reporting rules. (WC Docket No. 13-39)
5. Video Description – The Commission will consider a Report and Order which increases the required hours of video described programming that covered broadcast stations and MVPDs must provide to consumers. (MB Docket No. 11-43)
6. Updating the Part 2 Equipment Authorization Program – The Commission will consider a First Report and Order that would update and amend its equipment authorization program by replacing two certification procedures with a new Supplier’s Declaration of Conformity process, codifying procedures for the electronic labeling of devices, modernizing the requirements related to the importation of electronic equipment, and incorporating up-to-date methods for equipment compliance measurements into the rules. (ET Docket No. 15-170)
7. Radar Services in the 76-81 GHz Band – The Commission will consider a Report and Order that would address use of the 76-81 GHz band under the Part 95 rules to support a broad range of vehicular radar uses, such as collision avoidance and adaptive cruise control systems, as well as to expand the types of fixed and mobile radar operations permitted within airport environments. (ET Docket No. 15-26)
8. Wireless Microphone Operations – The Commission will consider an Order on Reconsideration and Further Notice of Proposed Rulemaking that would address licensed and unlicensed wireless microphone operations in the TV bands and various other frequency bands. (GN Docket No. 14-166; ET Docket No. 14-165)