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Report: AT&T and Verizon spent heavily lobbying for favorable LTE auction rules
If AT&T and Verizon manage to shut out their smaller rivals in a critical LTE wireless auction, it would severely harm US wireless competition, according to the Center for Public Integrity. In a report it said that the pair of wireless giants spent nearly $30 million on lobbying last year, almost four times the $8 million paid out by Sprint and T-Mobile. The low-frequency 600MHz spectrum in question is highly valued for its long range and ability to penetrate buildings, necessitating fewer towers and lower infrastructure costs. AT&T and Verizon already control 74 percent of existing low-band frequencies, putting Sprint and T-Mobile at a significant disadvantage -- especially outside of cities. As a result, T-Mobile's CEO, John Legere has stressed the importance of the upcoming auction for the future of his company.
UK Prime Minister wants a 'permanent technological revolution'... and movies downloaded in a second
David Cameron outlined his Spectrum Strategy for the UK's digital future, touching on 5G mobile broadband, better use of existing wireless frequencies and (as we keep hearing) the internet of things. In a speech at CeBIT 2014 in Hanover, he said: "This is a world on fast forward, a world of permanent technological revolution. Countries like the UK and Germany will only succeed if we have a relentless drive for new ideas and innovations." The government plans to stake £45 million (around $75 million) on research into that pesky internet of things, with the Prime Minister reckoning that improved spectrum use will lead to economic benefits of around £100 billion by 2025 -- and probably less spinning wheel of death.
Dish wins all the wireless spectrum in the FCC's latest auction
Dish has a seemingly insatiable appetite for wireless spectrum, and it's willing to spend a lot of cash to get its fill. Need proof? The FCC has just confirmed (PDF) that Dish bought all of the 1,900MHz licenses in a frequency auction that wrapped up last week, using a shell company to hide its name. The satellite provider paid just short of $1.6 billion for the airwaves -- chump change next to the spending on 700MHz blocks, but a large amount for spectrum where there wasn't much competition. While Dish isn't saying just what it will do with all that extra bandwidth, it's reasonable to believe that the company will use the newly acquired frequencies to boost its wireless broadband efforts.
T-Mobile promises better coverage after spending $2.4 billion on spectrum from Verizon
T-Mobile has just made a big move to improve its coverage by purchasing a large swath of 700MHz A-Block spectrum from Verizon for nearly $2.4 billion in cash. The UnCarrier -- which has been in a buying mood lately -- said the deal will will help improve its coverage for 158 million people in 21 of the top 30 US markets, including New York, LA, Atlanta and Dallas. It added that the low-band spectrum (which has a greater range than high-band frequencies) will be particularly useful in city suburbs. As part of the deal, it'll also transfer $950 million worth of spectrum to Verizon in several markets, mostly in northern California and Atlanta. Don't get excited about having better 4G coverage just yet, though -- the deal's still subject to approval from the FCC and DoJ, which move at their own speed.
FCC's wireless spectrum auction delayed to 2015 to prep bidding infrastructure
The lead-up to the government's wireless spectrum auction is going to be a little longer than expected, according to the Official FCC Blog. Partly because the government needs to finalize the event's rules and bidding structure. FCC Chairman Tom Wheeler writes that he wants to make certain that the event's infrastructure is up to the challenge, too. "For the incentive auction to be a success, we must also ensure that the operating systems and software to run it work from the moment the first bid is placed, until the final broadcast station is relocated," Wheeler writes. "Only when our software and systems are technically ready, user friendly, and thoroughly tested, will we start the auction." This nebulous answer puts the final auction in the middle of 2015. If you were planning on accessing that sweet wireless bandwidth, you'll have to wait until then.
Google encourages devs and businesses to use white space with new Spectrum Database API
Google's white space wireless database got the FCC green light for commercial use this summer, and Mountain View is now moving forward with an API to make exploring and utilizing available spectrum easier. Developers and businesses can set up commercial accounts and register their equipment with Google's database in order to operate on available TV white space. One company, Adaptrum, is already certified to use the database -- in cooperation with its own equipment -- to provide public WiFi to the West Virginia University campus. The hope is to encourage more collaborations between device manufacturers and the spectrum database to, say, bring more broadband access to rural areas.
Ofcom considers quadrupling mobile operator license fees (updated)
It currently costs the big four of EE, Vodafone , O2 and Three UK £64.5 million a year in licensing fees to do business in the UK, but Ofcom is currently weighing-up plans to quadruple those charges. After calculating the value of the spectrum based on the bids received in the 4G auction, the regulator wants to increase Vodafone and O2's annual rent to £83.1 million, Three UK to £37.5 million and EE to a whopping £101.7 million. Of course, the plans are currently in the consultation stage, which'll run through to December 19th, but we hope that someone points out the likelihood of the cost being passed down to users. Update: Ofcom has gotten in touch to add that the new tariffs were calculated in proportion to the payments received for the 4G spectrum auction.
Wind Mobile to participate in Canada's 700MHz wireless auction (update: more providers)
Wind Mobile apparently isn't worried that it has to fend without Verizon's help: the carrier has confirmed to MobileSyrup that it will participate in Canada's 700MHz wireless auction. While the provider doesn't have much more to share at this stage, it sees the LTE-friendly spectrum bid as proof of a "long-term commitment" to the country. The company will still have to win spectrum to better compete with Bell, Rogers and Telus, but its entry should assuage Canucks worried that only the incumbents can afford to buy more bandwidth. Update: EastLink and Public Mobile are also committed to the auction. Mobilicity, however, has yet to reveal its plans; if it doesn't announce its participation in the auction before noon today, it's out of the running.
AT&T finalizes $1.9 billion spectrum purchase from Verizon, deal will improve LTE service in 18 states
It's taken almost eight months, but AT&T has at last finalized its deal to purchase $1.9 billion worth of spectrum from Verizon. The agreement, first announced back in January, allows Verizon to unload a good chunk of its 700MHz spectrum, which AT&T will in turn use to improve its LTE service for 42 million customers across 18 different states. And that's all she wrote, folks. If you're curious to see whether your state is covered, all 18 of them are listed in the press release below. Be warned, though: you'll also need to watch AT&T do a victory lap over how fast its network is.
Verizon ices Canadian expansion after acquiring Vodafone stake
After flying into Canada and making noise about acquiring spectrum or buying operators Wind Mobile and Mobilicity, Verizon is taking its ball and going home. You might expect that's because it just dropped $130 billion buying Vodafone's 45 percent stake in Verizon Wireless -- the largest US corporate acquisition in over a decade. But Verizon said it had more to do with "what kind of value we could get for shareholders," and that "if we thought it had great value creation we would do it." That might be a boost to Rogers, Telus and BCE in Canada, but Verizon's withdrawal doesn't change one fact: all three are still bidding for a single block of 700MHz spectrum in next year's wireless auction.
Amazon said to have tested technology for its own wireless network
Amazon may not be happy with just piggybacking on other wireless carrier's signals for Whispernet-style offerings, as Bloomberg has heard it's trying out technology that would let it create its own wireless network. The technology used in the tests is from Globalstar, which is seeking to convert its spectrum -- intended for use by satellite-connected devices like the Global Phone pictured above -- for strictly ground-based use. The report points out a letter from Globalstar technical adviser Jarvinian to the FCC indicating it was helping a "major technology company" assess the performance benefits available earlier this year. The usual people with knowledge of the situation have filled in the blanks, however whether the tests are continuing or if Amazon will ever make real use of it is unknown. If things do move forward Amazon would hardly be alone in its efforts with Dish Network's similar push to use spectrum it owns for LTE. If Globalstar really can do LTE / public WiFi better we're ready to hear about it, although hopefully it will connect to more hardware than just some future Kindle Fire 4.
Verizon shelves Wind and Mobilicity acquisitions, ponders Canada's 700MHz auction
Verizon's insatiable appetite for spectrum is legendary. The company's most recently been eyeing Canada's valuable 700MHz airwaves and even shown interest in acquiring troubled carriers Wind Mobile and Mobilicity. (Especially after the CRTC rejected Telus's attempt to purchase the latter.) The Globe and Mail now reports that VZW's chosen to delay its potential acquisitions of the two carriers until after next year's 700MHz auction and that the US company is considering a bid for the spectrum directly. It's unclear if Verizon is attempting to buy time, trying to push the price of the struggling operators down or simply losing interest in the Canadian market. One thing's for sure -- if the company bids in the auction it won't be able to negotiate any deals with other applicants until next year. [Image credit: Andrew Currie, Flickr]
US Defense Department offers key spectrum to cellular carriers
The US Department of Defense values its wireless spectrum more than many government agencies, and it has been reluctant to lose those airwaves to private providers through government auctions. It just had a change of heart, however: the Pentagon tells the NTIA that it's now willing to free up spectrum in the 1,755MHz to 1,780MHz range. The proposal would have the military shift much of its wireless use into nearby 1,780MHz to 1,850 MHz bands, while moving other tasks into frequencies between 2,025MHz and 2,110MHz. Problem solved? Not quite, unfortunately -- NAB members use the 2GHz range for TV, and they're more than a little worried about interference. The military's suggestion should kickstart negotiations, though, and carriers are optimistic that there will eventually be a deal that gives them the bandwidth they crave.
T-Mobile to acquire 10MHz of LTE spectrum from US Cellular in $308 million deal
LTE spectrum is a hot commodity, and if you're hurting for cash, it might not be a bad time to let some go. US Cellular just inked a deal to unload 10MHz of Advanced Wireless Services (AWS) spectrum, padding its pocketbook with a whopping $308 million in cash. Pending FCC approval, that wireless load will be making its way over to T-Mobile, which would then own the vast majority of AWS. It's good news for T-Mobile customers, no doubt, especially those in the Southeast -- according to a press release, the spectrum T-Mob just snatched up covers 32 million people in cities like St. Louis, Memphis, Little Rock and New Orleans.
FCC to auction two pieces of 1,900MHz spectrum for mobile broadband
The FCC may be most concerned with portioning out lower frequencies to bandwidth-hungry carriers, but it's devoting some attention to higher bands today. The agency has voted in favor of auctioning off two slices of 1,900MHz spectrum, the lower H block (1,915MHz to 1,920MHz) and upper H block (1,995MHz to 2,000MHz), for the sake of mobile broadband. Both are relatively close to Sprint's PCS airwaves, but the provider reportedly has nothing to fear when rules are in place to minimize interference. If all goes well, an auction could take place in late 2013 or early 2014 -- just soon enough to deliver a quick capacity boost ahead of larger spectrum wars.
White House mandates that federal agencies make better use of spectrum
The White House has long been calling for smarter use of spectrum among federal institutions, and it's translating some of those words into deeds through a new Presidential Memorandum. The new set of guidelines requires that agencies wanting spectrum prove that they've both explored alternatives and will make efficient use of the airwaves they'll get. The NTIA also receives an expanded role under the mandate: it should offer wider access to government-owned frequencies and work more closely with the private sector. Not much changes for the FCC, though. The White House wants it to largely stay the course and prevent carriers from hogging spectrum. Accordingly, we're not expecting a sudden surge in wireless capacity as a result of the memorandum; it might, however, cut back on some waste.
Telus drops its attempt to acquire Mobilicity
Telus' bid to acquire Mobilicity was primarily a play for more spectrum, and the Canadian government's obligation to block the related frequency deal largely killed the merger's reason for being. However, the carrier isn't fighting that fatal setback to the bitter end, AT&T-style -- instead, it's backing out entirely. That's undoubtedly a relief for Canucks wanting a competitive cellular marketplace, although we wouldn't cheer too loudly. Mobilicity was partly hoping the deal would eliminate its financial woes, and it now has to fend for itself once again. There's also no guarantee that we'll avoid an eventual repeat: it could be open season on Mobilicity when there's no longer a moratorium on spectrum transfers.
Canada's 700MHz auction pushed to January 2014, Telus denied Mobilicity spectrum transfer
Oh, Canada. Just one day after we received word of the CRTC's new wireless code, Industry Canada -- its government's equivalent of the FCC -- announced further postponements of the country's pending 700MHz spectrum auction. Already delayed from the first half of this year to November, IC is pushing the auction back yet another two months to January 14th, 2014, while the application deadline has been reset for September 17th of this year. The main reason for the setback? This morning, the government denied Telus' request to transfer AWS spectrum from Mobilicity -- one of the most important factors in the potential merger of the two networks. As a result, IC decided to allow more time for the affected companies to figure out what to do next; more than likely, Telus will need the extra two months to pull an AT&T and rethink its acquisition strategy. Read the release below for a few more details behind the rationale.
Bloomberg: Dish offers $2 billion for LightSquared's wireless spectrum
The last few years have been a tumultuous time for LightSquared, with the company's LTE plans facing one hurdle after another that eventually led to a bankruptcy filing. It looks like at least one company is now looking to buy its most valuable asset, though, with Bloomberg reporting that Dish Network Chairman Charlie Ergen has put a $2 billion offer on the table for the company's wireless spectrum. That's yet to be confirmed by either party, and Bloomberg reports that the offer is a so-called stalking horse bid, which could still let others put in a higher offer of their own. As Bloomberg also notes, this all comes at the same time that Dish is looking to buy Sprint for over $25 billion, both of which would need regulatory approval before going through.
US and Canada reach border spectrum sharing deals for broadband
Wireless use along the US-Canada border can be problematic: when there isn't direct interference, there's sometimes a fight over which devices get dibs on given frequencies. Don't worry that the countries will rekindle their old disputes, though -- instead, they've just struck interim deals to share more of their spectrum. Along with harmonizing 700MHz public safety networks, the pacts address AWS (1,700MHz and 2,100MHz), PCS (1,900MHz), 3.7GHz wireless broadband, mesh networks and even WiFi hotspots. When possible, both sides will use contention protocols to automatically resolve any conflicts. While the deals aren't yet final, they should be strong enough to maintain some semblance of peace on the northern airwaves. [Image credit: National Film Board of Canada. Photothèque / Library and Archives Canada]
