Wireless Telecommunications

Sprint’s resumed talks about a potential merger with T-Mobile, being held at the same time as discussions with cable companies, shows the lengths billionaire Masayoshi Son is taking to build scale for a wireless carrier facing increasing competition in the US. The two mobile operators restarted discussions after Sprint’s exclusive negotiating period with Comcast and Charter Communications expired at the end of July, apparently. Son, who leads Sprint’s largest shareholder SoftBank Group Corp., is pursuing all options for industry consolidation as he continues to weigh a potential offer for Charter. SoftBank has been considering making a formal takeover bid for the cable company and combining it with Sprint.

Dish Network believes that its plan to launch a narrowband Internet of Things (IoT) network will enable it to meet the Federal Communications Commission’s build-out requirements for its spectrum, according to Jefferies Equity Research Americas. But it may need some help. Dish continues to sit on a significant pile of midband spectrum, but the clock is ticking for the company to put its airwaves to use one way or another. FCC rules stipulate that the satellite-TV provider must reach a 70% build-out by March 2020, and Dish faces similar mandates for its licenses in the AWS-4 band.

“We do not believe that it serves the public interest or makes business sense to build out a 4G/LTE network now that would duplicate networks already offered by the wireless incumbents, and subsequently require an almost immediate upgrade in order to be competitive,” the company wrote in a March filing with the FCC. “Instead, Dish plans to deploy a 5G-capable network, focused on supporting IoT—the first to be deployed in these bands anywhere in the world. … This network will not be burdened with a requirement to be backward-compatible with legacy services.”

On August 3, the passed the following technology and telecommunications bills:

1. S. 19, Making Opportunities for Broadband Investment and Limiting Excessive and Needless Obstacles to Wireless Act (MOBILE NOW Act), Legislation to increase spectrum availability for next-generation gigabit wireless services and foster broadband deployment. Sponsors: Sens. John Thune (R-SD), Bill Nelson (D-FL)
2. S. 96, Improving Rural Call Quality and Reliability Act of 2017, Legislation to require the FCC to establish quality and reliability standards for rural phone networks. Sponsors: Sens. Amy Klobuchar (D-Minn.), John Thune (R-SD), Jon Tester (D-MT)
3. S. 123, Kari’s Law Act of 2017, Legislation initiated after the murder of Kari Hunt in a hotel in Marshall, Texas, when Hunt’s daughter tried to call 911 but was unsuccessful due to a required “9” prefix on the hotel phone. This legislation bans the requirement of a prefix when dialing 911 for assistance. Sponsors: Sens. Amy Klobuchar (D-MN), Deb Fischer (R-NE), Brian Schatz (D-Hawaii), John Cornyn (R-Texas), John Thune (R-SD), Ted Cruz (R-Texas)
4. S. 134, Spoofing Prevention Act of 2017, Legislation to stop the transmission of misleading or inaccurate caller ID information, including such calls and text messages originating overseas. Sponsors: Sens. Bill Nelson (D-Fla.), Deb Fischer (R-Neb.), Amy Klobuchar (D-MN), Roy Blunt (R-MO)
5. S. 174, Federal Communications Commission Consolidated Reporting Act of 2017, Legislation to require the FCC to condense duplicative reports on competition in the telecommunications market into one comprehensive report released every two years. Sponsors: Sens. Dean Heller (R-NV), Brian Schatz (D-Hawaii)
6. S. 88, Developing Innovation and Growing the Internet of Things Act (DIGIT Act), Legislation to bring together private sector and government entities to assess the needs of the Internet of Things (IoT) and study the readiness of government to support the IoT. Sponsors: Sens. Deb Fischer (R-NE), Cory Booker (D-NJ), Cory Gardner (R-CO), Brian Schatz (D-Hawaii)

The Federal Communications Commission established the procedures for a robust challenge process to ensure that the FCC targets Mobility Fund Phase II (MF-II) support to primarily rural areas that lack unsubsidized 4G LTE service. Establishing the challenge process will enable the FCC to resolve eligible area disputes quickly and expeditiously.

In February, the FCC established the framework for the MF-II, $4.53 billion of funding over ten years, and sought comment on the process under which interested parties could challenge the eligibility of areas for MF-II support. This action establishes a challenge process that will be administratively efficient and fiscally responsible. This item adopts parameters for a one-time collection of 4G LTE coverage data tailored to MF-II. The FCC will use this coverage data, in conjunction with subsidy data, to establish the map of presumptively eligible areas. Interested parties will have a window after the release of this map to file challenges to areas deemed presumptively ineligible, and providers will have an opportunity to respond to those challenges. This item also includes an Order on Reconsideration, which resolves certain issues raised in petitions for reconsideration of the Mobility Fund II Report and Order adopted in February.

The Federal Communications Commission took steps to streamline and harmonize its license renewal and service continuity rules to ensure that Wireless Radio Services (WRS) licensees have a consistent framework and use spectrum to benefit all Americans. The Report and Order provides a clear, harmonized set of rules, including:

• Establishing a consistent standard for renewing wireless licenses;
• Setting forth safe harbors providing expedited renewal for licensees that meet their initial term construction requirement and remain operating at or above that level;
• Adopting consistent service continuity rules, which provide for automatic termination of any license on which a licensee permanently discontinues service or operation;
• Eliminating unnecessary, legacy “comparative renewal rules”; and,
• Requiring that when portions of geographic licenses are sold, both parties to the transaction have a clear construction obligation and penalty in the event of failure, closing a loophole used to avoid our construction requirements.

The FCC also adopted a Further Notice of Proposed Rulemaking that seeks comment on a range of ideas to facilitate continued investment during the renewal terms

Often sparring partners, the wireless industry and public interest advocates both came out in support of the AIRWAVES Act — but with very different hopes for where the legislation would lead.

The bill instructs the Federal Communications Commission to auction off the government-controlled spectrum of radio frequencies used for wireless communication, with the first auction to be held by next December. The bill would allow some spectrum for exclusive, or “licensed” use, as well as some for shared, or “unlicensed” use. Public interest advocates have pushed the FCC to give more access to unlicensed users by allowing them to share spectrum with private companies who get exclusive rights to certain bands. Those with licenses argue sharing can interfere with their signals. The AIRWAVES bill, which stands for Advancing Innovation and Reinvigorating Widespread Access to Viable Electromagnetic Spectrum, leaves the matter up to the FCC.

Many police officers, firefighters and paramedics carry their own smartphones to do the things their department-issued equipment can’t. But now, 16 years after the terrorist attacks of Sept. 11, 2001, exposed the inability of American first responders to talk to each other, a nationwide cellular network called “FirstNet” is launching to give public safety employees the ability to send data, video and text to each other.

When a crisis hits and cell towers are overwhelmed, calls from first responders will preempt calls made by the public. FirstNet is expected to be operational by March. Congress established the First Responder Network Authority after reports that firefighters and police officers were unable to communicate at the World Trade Center and the Pentagon after the Sept. 11 attacks. But the idea of placing all public safety agencies on one interoperable broadband network took off after AT&T was awarded wireless spectrum that will provide the bandwidth for the project and then committed to spending $40 billion to build new facilities and provide security for it. Each state, territory and the District of Columbia must opt in to the project individually so that their public service agencies can obtain the phones or sim cards and wireless plans needed to access FirstNet.

Bringing high-speed internet access to more of rural America is a policy goal that’s popular among Republicans and Democrats alike. But the issue isn’t moving very fast on Capitol Hill. Lawmakers from both parties, along with President Donald Trump, want to include rural broadband provisions in a larger infrastructure bill, a move that would benefit smaller wireless providers such as United States Cellular Corp. and C Spire Wireless as well as equipment companies. But infrastructure has taken a back seat so far to health-care and tax legislation in the 115th Congress. It’s unclear, at best, whether any infrastructure legislation will advance in 2017.

For now, all of the action on rural broadband is at the Federal Communications Commission, where Chairman Ajit Pai has made the issue a top priority. The commission plans to vote Aug. 3 on several related initiatives. Despite the commission’s focus, however, small and rural wireless providers worry that the agency will be slow or insufficient in serving the areas that need broadband most.

Unlimited data plans are slowing down mobile speeds for Verizon and AT&T customers, according to data released by mobile network measurement company OpenSignal.

Verizon and AT&T reinstated their unlimited plans in February to compete with T-Mobile and Sprint, which have long offered unlimited data plans, and have since seen a deluge of demand. Greater data demand — either more data usage or more customers — means slower speeds. Think of it as increased traffic on a highway. Verizon and AT&T also have nearly double the subscribers of T-Mobile and Sprint, so changes in their offerings hit their networks harder. Carriers have long supported greater leeway to manage their networks as part of the US government’s fierce debate over net neutrality. T-Mobile’s unlimited plan often limits video streaming quality in a bid to ease the burden on its network; others like Verizon recently have tested similar tools to improve speeds. To staunch advocates of open internet rules, however, these techniques violate the spirit of federal safeguards meant to ensure all web traffic is treated equally. Both Verizon and AT&T saw a notable decline in speeds after introducing unlimited plans.

At our meeting on Aug 3, the Commission will vote on a mid-band spectrum Notice of Inquiry. While it provides a great opportunity to point out any frequencies, between 3.7 and 24 GHz, that you think may facilitate wireless broadband services, the main focus is the 3.7 to 4.2 GHz band. Recently, an ad-hoc coalition of equipment manufacturers, wireless providers, and unlicensed users have been discussing ideas on how to open the 3.7 to 4.2 GHz band for licensed mobile services, while protecting or accommodating incumbents. This will provide an excellent opportunity because it is so close to the 3.5 GHz PALs.