Wireless Spectrum Auctions

Huawei is winning the battle on 5G worldwide, Rivada Networks CEO Declan Ganley said at a Hudson Institute lunch Thursday. Ganley said cheap financing backed by the Chinese government has led to Huawei success. China’s goal is “dominating the cyber domain by 2025,” he said. Rivada backed a push for a national, wholesale 5G network, which got early support from the White House (see 1904120065).

Beyond whatever steps the FCC takes to open up the C band to other uses, spectrum issues will become more complicated and challenging, and incentive mechanisms are needed for incumbents, said Office of Economics and Analytics acting Chief Giulia McHenry at an FCBA CLE Tuesday evening. For auctions, take the prohibited communications rule very seriously, said Jonathan Cohen of Wilkinson Barker, who when at the FCC co-wrote rules for the agency's first spectrum auctions. "It would be a death sentence" for a lawyer to be a conduit for prohibited information, he said.

Virtually every commenter opposes cellular market area-level bidding in next June’s auction of priority access licenses in the citizens broadband radio service band (see 1910290046), Verizon told the FCC on bidding rules. Replies were posted through Wednesday in docket 19-244. “CMA-level bidding is not package bidding and would reduce bidder flexibility, while adding unnecessary complexity to an already-complex auction,” Verizon said. Verizon identifies T-Mobile as the lone CMA bid supporter. T-Mobile fired back, urging instead that the FCC allow just CMA-level bidding in the top 172 markets incorporating multiple counties and only county-level bidding in remaining areas. “That approach would: (1) eliminate the complexity of allowing both CMA-level and county-level bidding in the same area; and (2) balance concerns that CMA-level bidding may inhibit some bidders from securing licenses against the potential for interference and need for coordination the Commission identified when it decided to consider package bidding,” T-Mobile said. There's “overwhelming opposition” to CMA-level bidding, so drop that and package bidding, said the Rural Wireless Association. RWA noted 126 of the 663 counties in the 172 markets are rural “based on the Commission’s own definition.” CMA-level bidding “would produce unintended, detrimental consequences that would jeopardize the auction’s success,” NCTA said. CMA bidding “adds a bewildering level of complexity to the auction process that, by itself, eliminates any realistic possibility of auction success for smaller commercial and business enterprise entities,” the Enterprise Wireless Alliance filed: “It would undo the very compromise that the Commission achieved.” A broad group opposes CMA-level bidding “largely because the proposal will exclude all but the largest mobile wireless carriers from having access to PAL-protected spectrum wherever CMA-level bidding applies,” said the Industrial IoT Coalition.

Senate Appropriations Financial Services Subcommittee Chairman John Kennedy, R-La., told us Thursday he now expects a planned second hearing on his concerns about a potential private auction of spectrum on the 3.7-4.2 GHz C band to happen Nov. 20. Kennedy grilled FCC Chairman Ajit Pai in October on whether he favors a private auction similar to what the C-Band Alliance proposes (see 1910170038). Pai's expected to propose a private auction plan for a vote at commissioners' Dec. 12 meeting (see 1910100052). The C-Band Alliance countered what it believes are other stakeholders' “misstatements” about its private auction proposal, writing House Communications Subcommittee leaders.

The 2019 World Radiocommunication Conference almost immediately got down to business this week, with FCC Chairman Ajit Pai there. But officials at the WRC, in Sharm El-Sheikh, Egypt, said a letter that President Donald Trump sent Monday (see 1910280054) likely raised question. This is considered potentially the most important WRC because of its focus on 5G and harmonizing bands.

House Communications Subcommittee Chairman Mike Doyle, D-Pa., saw positive signs for moving forward on legislation to mandate an FCC-led public auction of spectrum on the 3.7-4.2 GHz C band after all subcommittee Democrats and several Republicans showed a clear preference for such a plan during a Tuesday hearing. The panel also was a forum for castigating the C-Band Alliance's proposal for a private auction of the bandwidth, as expected (see 1910280040). All sides continued to meet with the FCC. Chairman Ajit Pai is expected to propose a private auction plan for a vote at commissioners' Dec. 12 meeting (see 1910100052).

The FCC got pushback on a proposal to allow license sizes larger than counties in the priority access licenses that will be sold to provide more protected use of the 3.5 GHz citizens broadband radio service band. Even larger carriers consider the plan flawed and sought changes. With a C-band auction looming, questions emerged on how likely carriers are to pursue the PALs during next June’s auction (see 1910170045). Many filings talked about the impact on rural areas and bidders.

Tuesday's House Communications Subcommittee hearing on repurposing spectrum on the 3.7-4.2 GHz C band (see 1910220070) is expected, like other Capitol Hill panels this year, to largely criticize the C-Band Alliance's proposal for a private auction of the bandwidth, communications policy-focused lobbyists said in interviews. House Communications, the Senate Commerce Committee and the Senate Appropriations Financial Services Subcommittee examined the FCC's C-band proceeding in hearings since May (see 1910170038). The House Communications panel will begin at 10 a.m. in 2322 Rayburn. A consortium of major satellite operators affiliated with CBA ahead of the hearing upped what they said their private auction plan would clear, as expected (see 1910250062).

The C-Band Alliance faces pressure to provide an update on its revised proposal to make as much as 300 MHz available for 5G. Industry officials said an FCC filing could come soon, especially with a House Communications Subcommittee hearing on the band scheduled Tuesday (see 1910220070). If commissioners are to vote on an order on Dec. 12, as expected, Chairman Ajit Pai would have to circulate an order in less than a month. A CBA update could still come before Tuesday’s hearing, industry officials said. CBA didn't comment Friday.

Comcast's Peacock streaming service launching in April won't try to replicate Netflix and other subscription VOD services, but instead will focus on advertising support and a mix of nonexclusive content, originals and acquired exclusives like The Office, NBCUniversal CEO Stephen Burke said Thursday on a Q3 call. He said Universal will continue to sell its motion pictures to premium networks like HBO. Q3 revenue was $26.8 billion, flat year over year on pro forma basis, with Comcast having added Sky in Q4 2018. Comcast ended the quarter with 26 million residential broadband subscribers, up 1.2 million; 20.4 million residential video customers, down 560,000; and 9.95 million residential voice customers, down 220,000. Mobile subscribers numbered 1.8 million, up 800,000. Comcast CEO Brian Roberts said monthly data usage of its broadband subscribers has more than doubled over the past three years. He said NBC topped prime time ratings for adults ages 18 to 49 for the sixth consecutive 52-week season. He said its NBCUniversal and Sky are starting work on joint production of content and are creating a global news channel. Asked about Comcast interest in the citizens band radio service auction or C-band or millimeter-wave spectrum for its mobile business, Roberts said it "will always be opportunistic" when looking at means of offloading wireless traffic from its Verizon mobile virtual network operator to its own network. Asked when cord-cutting trends might level off, analysts were told the operator's focus is on video profitability and that might mean customers receiving lower-end or promotional video packages could be moved to broadband-only packages instead.