T-Mobile is likely to be the dominant bidder in a 2.5 GHz auction expected next year, as it fills out substantial holdings in the band. T-Mobile got the spectrum when it bought Sprint and said in August it’s adding the band to its network at 600-700 sites weekly (see 2008070026). T-Mobile asked last week to move forward on an auction next year. AT&T questioned whether T-Mobile’s holdings exceed the spectrum screen.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
A Thursday House Communications Subcommittee hearing is expected to feature partisan dueling assessments of the FCC's performance under Chairman Ajit Pai, capping off subcommittee Democrats’ often-rancorous relationship with commission Republicans this Congress (see 1901160031). Communications Democrats said the hearing will focus on FCC “lost opportunities” during President Donald Trump’s administration, including actions they say widened the digital divide (see 2009100066). The hearing begins at 10 a.m.
The FCC made the right decision on Ligado, FCC Chairman Ajit Pai told Incompas Tuesday during its virtual conference. Pai stressed FCC focus on 5G, saying the upcoming C-band auction will be “massive.” Pai said more is coming, including on the 5.9 GHz band and a follow-up order on 6 GHz (see 2008200040). “We have a lot of big irons in the fire,” he said.
Verizon’s proposed buy of Tracfone from America Movil for as much as close to $7 billion (see 2009140010) appears to show Verizon growing its prepaid wireless market in a big way. The early read is it should have few problems getting clearance from regulators. Tracfone is the largest U.S. reseller of wireless services, with 21 million subscribers.
Lawmakers will probably not be able to repeal the 2012 Spectrum Act's mandate for public safety to move off the 470-512 MHz T band until Congress’ post-election lame-duck session because of the likely lack of a viable legislative vehicle before that time, officials and lobbyists told us. FCC Chairman Ajit Pai simultaneously circulated an auction NPRM and urged Congress in May to repeal the mandate (see 2005150053) because the sale was “a bad idea.”
Verizon appears to be girding for a fight with T-Mobile over whether its spectrum holdings should preclude the “uncarrier” from bidding in the C-band auction, which starts Dec. 8, industry officials said. Verizon would flip the script on T-Mobile, which lobbied against Verizon and AT&T holdings seeking preferential treatment for competitors in the TV incentive auction (see 1408130047).
The results of the FCC citizens broadband radio service auction announced Wednesday 2009020029) were largely as expected, with Verizon and major cable operators dominating (see 2007200049). Dish Network also came in big, which was more of a surprise (see 2008260055). Southern California Edison also gobbled up priority access licenses (PALs).
Verizon, seeking to close mid-band holes in its network, was the big winner in the citizens broadband radio service auction with $1.89 billion in bids, the FCC said Wednesday. Wetterhorn Wireless, a Dish Network subsidiary, bid $912,939,410. Charter Communications’ Spectrum Wireless Holdings bid $464,251,209.
The National Public Safety Telecommunications Council warned of problems for public safety if the FCC requires T-band licensees vacate the spectrum. “If Congress fails to repeal the T-Band mandate it adopted in 2012, the result is significant disruption to public safety, the likelihood of a failed auction, an unfunded mandate for public safety relocation and unnecessary cost to taxpayers,” NPSTC said in comments in docket 13-42. Comments were due Monday on an NPRM seeking to “take the next statutorily required step to implement” the 2012 spectrum law's mandate for public safety to move off the 470-512 MHz T band (see 2005150053). NPSTC noted its members, “jurisdictions that rely on the T-Band, the GAO, the FCC Chairman, and two major wireless carriers” support repeal. NAB said an auction would almost certainly fail. Consider “seeking preliminary bids or taking other actions to ascertain whether auction of limited spectrum has any chance of covering the costs of relocation of incumbents,” broadcasters said.
Congress will never act on a stand-alone bill that would block the FCC from making public safety vacate the 470-512 MHz T band, Enterprise Wireless Alliance President Mark Crosby told the virtual IWCE conference Thursday. The House Commerce Committee approved the Don’t Break Up the T-Band Act (HR-451) in July (see 2007150068). Crosby said the bill can get through only if appended to a COVID-19 stimulus package.