T-Mobile and Sprint likely have a better chance of prevailing in the state challenge to their deal than an objective legal analysis would suggest, New Street’s Blair Levin told investors this weekend. The broader deal with DOJ includes the sale of assets to Dish Network so it can launch a wireless competitor. “Underneath the legal framework is a question that we believe the judge will constantly be asking himself: are American consumers better off in the long-run with the proposed DISH and T-Mobile business plans or are they better off with Sprint going through some kind of unspecified financial restructuring, sale of assets, and other business moves?” Levin wrote. T-Mobile CEO John Legere and Dish Chairman Charlie Ergen will be “compelling witnesses for the former,” Levin said: “To the best of our knowledge, there will not be any businesspersons arguing in detail for the latter. That asymmetry, we believe, will be a major dynamic in the trial and the key reason we see the odds as closer than traditional antitrust analysis would suggest.” A trial on the case against the deal by state attorneys general starts Dec. 9 in U.S. District Court for the Southern District of New York (see 1909300033). The FCC, meanwhile, approved a waiver Monday allowing Sprint to bid in the December auction of high-band spectrum in the upper 37, 39 and 47 GHz bands. T-Mobile earlier got a similar waiver (see 1908270033). The FCC dismissed as moot waiver requests by the two carriers and Dish of the same rules for the related asset sale agreement among the three companies. The Office of Economics and Analytics and Wireless Bureau said in docket 19-59 that waiver isn’t necessary.
The FCC has to challenge California and other state net neutrality rules, after the U.S. Court of Appeals for the D.C. Circuit’s ruling last week, to keep the internet from being shaped by “the lowest common denominator,” said Commissioner Mike O’Rielly on the C-Span’s The Communicators taped hours after the ruling Tuesday. The episode was scheduled to have been shown Saturday. O’Rielly also discussed 5G, media ownership and FCC pre-emption of state and local rules to promote nationwide deployment of broadband infrastructure. “Saying that a particular boundary of a state which may have been decided decades or hundreds of years ago based on geography or some military conflict ... it’s just artificial,” O’Rielly said.
T-Mobile thinks moving programming transmissions from the C band to fiber is critical. It proposes an incentive auction. “The primary goal of this proceeding is clear” -- to lead on 5G -- so the U.S. must “make hundreds of megahertz of spectrum in the 3.7-4.2 GHz band available for terrestrial use,” said a filing in docket 18-122, posted Thursday on a series of FCC meetings: “An important component of maximizing the amount of C-band spectrum for 5G services includes the use of an alternative transport mechanism, such as fiber, to ensure the reliable delivery of the content currently carried by satellites using the spectrum.” The company opposes a plan by the C-Band Alliance, which isn't based on moving operations to fiber (see 1909180061). The carrier met with the leaders of the International Bureau, the offices of Economics and Analytics and of Engineering and Technology and Wireless Bureau staff. The Educational Media Foundation, meanwhile, told officials it makes significant use of the band to distribute programming to stations. Changing its operations to address reallocation “would impose significant cost on EMF,” the nonprofit said. EMF met with Commissioners Mike O’Rielly and Jessica Rosenworcel and aides to the other commissioners.
The FCC Office of Economics and Analytics projects three auctions from now through Sept. 30, 2020. Two are already scheduled and a third was promised by Chairman Ajit Pai. The notice doesn’t mention any auctions tied to the USF, including a Mobility Fund II auction. A C-band auction didn’t make the list. The first auction listed is that of the 37, 39, 47 GHz bands, to start Dec. 10 (see 1904120065) and the second is the 3.5 GHz priority access licenses auction, to start June 25 (see 1909260040). The third hasn’t been scheduled, for 2.5 GHz educational broadband service licenses.
A private auction of C-band spectrum would violate Communications Act Section 309(j), Michael Calabrese, director of the Wireless Future Program at New America, told William Davenport, an aide to Commissioner Geoffrey Starks. That’s “regardless of whether a private auction was conditioned on FCC-like protections and/or a contribution of some share of revenue to the Treasury,” Calabrese said in a docket 18-295 letter, posted Monday.
The FCC apparently missed a deadline to notify NTIA 18 months before the start of the 3.5 GHz auction that an auction would be scheduled. Commissioners approved a public notice on bidding procedures for the citizens broadband radio service auction, to start June 25, at their meeting Thursday. But the FCC denied the band is even subject to Commercial Spectrum Enhancement Act (CSEA) requirements. Earlier this year, the Commerce Department and FCC engaged in a battle over 24 GHz band. (see 1908090070).
Telecom sector supply chain security and spectrum legislation drew enthusiastic support from House Communications Subcommittee members and witnesses during a Friday hearing, as expected (see 1909260056). They gave no clear guidance during on how they want to proceed on the seven measures the panel examined. Lawmakers focused much of their attention on the Secure and Trusted Communications Networks Act (HR-4459) and the Studying How to Harness Airwave Resources Efficiently Act (HR-4462), though they also showed interest in other measures.
FCC members approved 5-0 a public notice Thursday seeking comment on an auction of priority access licenses (PALs), the licensed part of the 3.5 GHz citizens broadband radio service band. As expected, Commissioners Jessica Rosenworcel and Geoffrey Starks raised concerns (see 1909230056) but voted to approve after each got changes to the notice. The auction is to start June 25.
America’s Communications Association and other members of the leading rival group to the C Band Alliance said they made tweaks to their proposal for the spectrum, filing in FCC docket 18-122 a supplement to their “5G Plus Plan.” The others behind the plan are the Competitive Carriers Association and Charter Communications. The biggest change is that the proposal increases the amount of reimbursable funds for programmers by about $800 million. “Our members share an interest in preserving a healthy ecosystem for video delivery, so we took these questions very seriously,” blogged ACA President Matt Polka: “After dozens of individual conversations with more than 10 programmers of different sizes, and a series of webinars with even more, we supplemented our plan with additional details that incorporate programmers’ feedback.” Polka urged the FCC to adopt the plan. “Charter’s perspective on the reallocation of c-band spectrum for 5G is informed by its position as a growing player in wireless and a provider of video programming and high speed broadband to millions of Americans living in urban, suburban and rural communities across 41 states,” a Charter spokesperson emailed. “The goal of this proceeding is to find a solution that clears and assigns C-band spectrum, efficiently and expeditiously, enabling 5G services in the U.S. as fast as practicable," emailed Peter Pitsch, CBA head-advocacy and government relations. “The ACA Connects’ ‘top-down’ proposal would foist a fiber-based concept on the entire video distribution system by an arbitrary date. The CBA plan remains the best way to balance all of these important priorities.” FCC Chairman Ajit Pai said Thursday he still expects a proposal in the fall. Commissioner Geoffrey Starks said he doesn't like the idea of a private auction, like the CBA proposal. Asked after the commissioners' monthly meeting if there's a band-clearing proposal he favors, he said "we need to be led by the science." He also wants to ensure the federal government and citizens "are the ones who benefit." Commissioner Jessica Rosenworcel didn't comment.
Widespread 5G will mean many more Americans will have another choice of broadband provider, FCC Commissioner Brendan Carr told the Americas Spectrum Management Conference Wednesday. Carr said the FCC needs to continue its push to get the rules right for broadband deployment. But Carr didn’t discuss next steps or comment on regulatory changes sought by CTIA and the Wireless Infrastructure Association, which the FCC put out for comment (see 1909130062).