NTIA is facing increasing pressure from carriers for additional spectrum for full-power licensed use, and from interests favoring a more open-ended approach, especially in the lower 3 GHz and 7/8 GHz bands, as the agency finalizes an implementation plan for the national spectrum strategy, due for release March 14. DOD is defending its systems in the bands targeted by carriers. Meanwhile, there are questions about how much longer Scott Harris, NTIA senior spectrum adviser, will remain at the agency after the implementation plan is released, industry officials told us.
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.
Latest spectrum auction news
Verizon remains enthusiastic about its choice to invest heavily in C-band spectrum during the 2021 auction, Joe Russo, president-global networks and technology, said at the Scotiabank financial conference Tuesday. Verizon went big in the C-band auction, bidding $45.4 billion, plus $8 billion in incentive costs to satellite operators (see 2102250046). C-band has “great propagation characteristics,” Russo said. “And the usage of that C-band spectrum has just been exploding as more and more customers get access to it and more and more customers buy our premium plans with premium devices.” C-band also gives Verizon the capacity to offer fixed wireless access, he said. Russo said FWA requires “really good modeling around RF propagation” and “really great capacity management capabilities.” Verizon has focused on both. Moreover, its mobile network remains Verizon's top priority, with FWA possible where it has excess capacity, he said. The average 160 MHz of C-band Verizon has in each market gives the carrier lots of capacity, he said. Russo noted its FWA product offers 300 Mbps service. “When we look at even peak volumes that come out of a consumer's home, even the biggest homes with streaming and gaming and all these kinds of things, customers are using far less than that,” he said. Peak demands for top tier fiber and FWA customers average 100 Mbps or less, he said. Verizon now has more than 3 million FWA customers, with a goal of 5 million-6 million by the end of next year, which means about 350,000 adds per quarter, Russo said. “We're well ahead of that pace.”
The U.S. government will seek dismissal of Vermont National Telephone (VTEL) litigation against Dish Network designated entities (DE) Northstar Wireless and SNR Wireless over allegations of fraud in the 2015 AWS-3 auction. The U.S. is the relator in the VTEL litigation. DOJ filed a notice of intent to intervene and dismiss Friday with the U.S. District Court for the District of Columbia (docket 1:15-cv-00728). It hasn't said in court filings the reasoning behind its move to get the case dismissed, and didn't comment Monday. The U.S. Court of Appeals for the D.C. Circuit in 2022 reversed the lower court's dismissal of VTEL's False Claims Act suit against the Dish DEs and remanded it to the D.C. District Court (see 2205170026).
The 2023 nationwide launch of EchoStar's Boost Infinite postpaid mobile service has stumbled, CEO Hamid Akhavan said Friday. In an earnings call -- the first since EchoStar acquired Dish Network (see 2401020003) -- Akhavan said the company is looking at assets, including its spectrum holdings, to raise funds to meet a major debt obligation this fall. EchoStar announced Q4 2023 results after the market's close Thursday.
It's unclear how much the FCC’s enhanced competition incentive program (ECIP) will influence the way industry does business, experts said. Commissioners approved ECIP in the summer of 2022. It's officially live as of last month (see 2402150043).
The FCC on Tuesday denied AT&T’s request that the agency not award 2.5 GHz licenses to T-Mobile, and said the licenses will be processed. AT&T challenged the awards in November 2022, noting T-Mobile’s already huge position in the band (see 2211100066). “We find that the grant of T-Mobile’s license application -- subject to its voluntary divestiture commitment in parts of Hawaii that we impose as a condition -- will promote the public interest by facilitating access to and use of the spectrum, particularly in rural areas where this band has been underutilized,” said the opinion and order by the Wireless Bureau and Office of Economics and Analytics: “Accordingly, we deny AT&T’s petition to deny and will process T-Mobile’s application consistent with this Order and the Commission’s rules.” T-Mobile dominated the 2022 auction but required action from Congress before obtaining the licenses following expiration a year ago of the FCC’s auction authority (see 2312200061). T-Mobile recently committed to voluntarily divest, “either by sale or spectrum swap,” licenses it holds in two Hawaii markets, the FCC said.
SpaceX likely faces a tough challenge as it seeks easier access to the 2 GHz and 1.6/2.4 GHz spectrum bands, spectrum experts tell us. In a pair of FCC petitions last week, the company argued that in both cases the spectrum is underused and urged changes in the licensing and sharing frameworks to allow new entrants and coexistence.
The FCC sought comment Tuesday on long-form applications from Quick Current to buy 2.5 GHz licenses in Iowa and Nebraska. Petitions to deny the applications are due no later than Feb. 23, oppositions March 1 and replies to oppositions March 8, said a notice from the Wireless Bureau and Office of Economics and Analytics. Under the 5G Spectrum Authority Licensing Enforcement Act, enacted in December, the FCC can issue licenses won in the 2022 auction despite the expiration in March of its general spectrum auction authority (see 2312200061).
Wireless carriers are concerned and have many questions about the administration's processes for proposed studies under the national spectrum strategy that will examine the future of five bands as part of a possible spectrum pipeline, industry and government officials said. Carriers are most concerned about two bands, the lower 3 GHz and 7/8 GHz, which they see as possible spectrum for full-power licensed use. Meanwhile, USTelecom CEO Jonathan Spalter urged the leaders of the House and Senate Commerce committees Thursday night to reach a deal on legislation to “unite behind a national spectrum strategy” and reinstate the FCC’s lapsed auction authority.
EchoStar defended its proposals for deploying the lower 12 GHz band for fixed wireless against complaints from DirecTV (see 2401290038). “RKF Engineering has shown that Fixed 5G using the 12.2 GHz band can serve many tens of millions of households while fully protecting existing [satellite] customers,” said a filing posted Thursday in docket 20-443. The band is “the only short-term opportunity on the horizon for new 5G spectrum: there is no easy resolution of the impasse that has prevented Congress from reauthorizing the Commission to conduct auctions, and the NTIA’s national spectrum strategy called for further study but did not identify bands that can be deployed immediately,” EchoStar said.