Noting the high use of texting by populations particularly at risk to suicide, such as kids and minorities, the four FCC members on Thursday approved a Further NPRM on a mandate that carriers provide capabilities to text the 988 National Suicide Prevention Lifeline (see 2103310030). Also getting unanimous approvals at the commissioners' meeting were an order allocating spectrum for commercial space launches and an NPRM on setting a framework for informing 911 centers of network outages affecting them, as well as an NPRM on wireless mics in the TV and other bands and an order ending the 800 MHz rebranding process (see 2104220056). Commissioners also OK'd a $4.1 million slamming fine.
AT&T had a wireless growth surprise in Q1, with 595,000 postpaid phone net adds and postpaid churn of 0.76%, better than analyst expectations. Verizon reported Wednesday it lost postpaid subscribers (see 2104210060). AT&T CEO John Stankey warned on a Thursday call with analysts that supply chain issues could complicate C-band deployments.
House Communications Subcommittee members of both parties largely agreed during a Wednesday hearing that to secure U.S. leadership on 5G technology, Congress must fully fund work on speeding adoption of open radio access networks, and that agencies should return to a unified spectrum policy approach during President Joe Biden’s administration. Tech policy bipartisanship was also evident as Senate Majority Leader Chuck Schumer, D-N.Y., Rep. Ro Khanna, D-Calif., and others of both parties introduced, as promised, a revised version of the Endless Frontier Act. It appears to be back on track (see 2104140069) for swift action after earlier GOP misgivings.
With T-Mobile coming on strong and competition intensifying, Verizon lost 178,000 postpaid wireless phone subscribers in Q1. Verizon was the first of the big three to report, with AT&T set for Thursday. Verizon’s buy of Tracfone will likely close in Q3, CEO Hans Vestberg told analysts Wednesday: “Everything we said from the beginning is holding true. The process is continuing as expected.” The FCC asked both companies last week for more data, including the deal's implications for Lifeline customers (see 2104140064). Vestberg defended the company’s $52.9 billion in bids in the C-band auction. “The combination of C band and our millimeter wave places us in a unique position of strength to execute on all 5G opportunities,” he said. Verizon ordered half the gear it needs to deploy in the C band this year, he said. Verizon is feeling effects from the pandemic, Vestberg said. “While we see significant progress in vaccinations, customer sentiment and recovery of our economy, there is still a lot to go before we are back to normal.” Asked if Verizon planned to apply for emergency broadband funds from the FCC, Vestberg said companies should take the lead, with government focusing on “affordability.” Profit was $5.4 billion, up from $4.3 billion a year ago and better than any quarter last year. Revenue was $32.9 billion, up from $31.6 billion. Verizon added a net 98,000 Fios customers but lost 82,000 pay-TV subscribers, citing "the ongoing shift from traditional linear video to over-the-top offerings." Verizon’s advantages in the 4G era are slipping away, MoffettNathanson’s Craig Moffett told investors. “In 5G, Verizon looks destined to be a fast-follower, at best,” he said. “Verizon is quick to argue that T-Mobile’s 2.5 GHz spectrum won’t translate into a coverage advantage (they argue that their newly-won 3.7 GHz spectrum will propagate just as far given allowable power level differences). Good try. But T-Mobile has more spectrum, they have it sooner, and they’re already far down the road of building out their network.” New Street’s Jonathan Chaplin said he’s watching long-term trends for Verizon more than quarterly results. “We were surprised by long-term guidance of flat margins amid improving revenue growth; wireless has always been a business with operating leverage,” he told investors: “We suspect the investment in infrastructure to deploy C-Band is driving up fixed costs.”
CTIA and major wireless carriers urged the FCC to provide more information as soon as possible on how the 3.45 GHz band will be cleared and the protections that will continue for federal incumbents, in initial comments on the auction procedures public notice. Carriers generally were enthusiastic about the FCC’s next 5G auction, starting in October, but sought some tweaks. Comments were posted Thursday in docket 21-62. The Competitive Carriers Association asked for higher bidding credits.
Senators in both parties continued to emphasize the importance of communications sector interests in an eventual infrastructure spending package Thursday, as talks continued on the scope of such legislation. Senate Commerce Committee Chair Maria Cantwell, D-Wash., said during a Communications Subcommittee hearing that she’s going to push for local media outlets to receive some funding in a final infrastructure bill. Committee ranking member Roger Wicker of Mississippi and other Republicans said they’re committed to including broadband language in a planned counterproposal to President Joe Biden’s $2.3 trillion infrastructure package (see 2104140069).
Telecom and technology are finally converging, but the FCC has been slow to keep up with the change, Commissioner Brendan Carr said Tuesday at FCBA's first “all chapter” virtual event, with members watching from across the U.S.
Verizon signed deals with tower companies Crown Castle and SBA Communications to rapidly deploy equipment as it launches 5G and fixed wireless broadband in C-band spectrum. “Deploying 5G Ultra Wideband on this spectrum requires new network equipment including basebands and antennas to be placed on existing towers,” Verizon said Monday. The terms weren’t announced. The carrier secured an average of 161 MHz of C-band spectrum nationwide in the recent FCC auction (see 2103110034).
FCC Commissioner Nathan Simington said ensuring "the highest and best" intense use of spectrum and easing the path to infrastructure investment are among his top policy priorities. During a virtual AGL event Thursday, he said shrinking guard bands could be a potentially viable route. Simington said he's "skeptical" that a nationwide fiber buildout could be accomplished at $80 billion and cautioned that a Title II regulatory approach to broadband could raise the threshold for what constitutes a viable community for a broadband provider to offer connectivity. The FCC has done "quite well" in making low- and high-band spectrum available for commercial wireless, but midband needs remain, and that spectrum has a strong ability to drive 5G updates, Simington said: The FCC has the tools to make more spectrum available for terrestrial wireless, but the most effective way to use those tools is clear and open communication with federal users. "Often it's important to not let things get too far down the road before engagement." Simington said he hasn't heard any discussions about a twilight towers agenda item, though the issue could be under study at the staff level. Asked about Communications Decency Act Section 230 action at the FCC, he said it seems clear the agency has authority to take action, but whether it should is less clear. Congress might take up Section 230 without the FCC, he said, and the agency isn't likely to move any item forward before it has a fifth commissioner. He was largely critical of municipal broadband, saying systems frequently require ongoing taxpayer subsidization. Muni broadband "has on occasion filled gaps in some areas," but it's not an effective systemic solution to unserved areas, he said. Asked who will be permanent FCC chair, Simington said he has no insider knowledge, but acting Chairwoman Jessica Rosenworcel “has been doing a fantastic job. We are transacting business at a nice brisk clip.” Aurora Insight CEO Jennifer Alvarez said this fall's 3.45-3.55 GHz band auction won't be "quite as high-priced" as the C-band auction because while both represent midband spectrum, 3.45-3.55 GHz has to be shared with incumbent users. Localities lawyer Jonathan Kramer of Telecom Law Firm said small-cell deployments are varying widely in density, with two to three per square mile in some jurisdictions and 30-plus in others. He said local governments have pressing interests in knowing the numbers, locations and designs, because they are "the ones who will live with these things the next 30, 40 years."
The upcoming 3.45 GHz auction and yet-to-be-scheduled 2.5 GHz sale are likely to get broad interest from smaller carriers, industry officials said during a Competitive Carriers Association virtual conference Wednesday. They warned that holding three midband auctions in a short time poses financial issues.