With the FCC citizens broadband radio service auction set to start, the agency is under pressure to further delay the auction because of credit market issues. Markets remain jittery due to the pandemic, a problem for small players that may need to raise the money to bid. The FCC postponed the auction in March to July 23, from June 25, because of COVID-19 concerns (see 2003250052).
The FCC approved 5-0 allowing broadband in 900 MHz, reallocating a 6 MHz swath while keeping 4 MHz for narrowband. Commissioners voted electronically (see 2005130008) before Wednesday's abbreviated virtual meeting, as expected (see 2005070054). Anterix executives said the spectrum could help utilities across the U.S. update operations and move to a smart grid.
The FCC approved an order aimed at streamlining rules and procedures for the final stage of the 800 MHz band rebanding, as proposed in a Further NPRM approved 5-0 last year (see Notebook at end of 1910250036). The order, released Tuesday, said the FCC will no longer require the transition administrator give the commission "an annual audit or conduct other financial reconciliation of Sprint’s rebanding expenditures.” The TA no longer must review and approve amendments to frequency reconfiguration agreements “with respect to cost creditability,” the docket 02-55 order said. While eliminating some requirements, “we affirm that the Transition Administrator will continue its tracking, reporting, analytical, and mediation functions as needed to facilitate the rebanding program's goals and assure its successful conclusion,” the order said. Commissioners approved the original rebanding order in July 2004, aimed at addressing interference to 800 MHz public safety radio systems caused by what was then Nextel’s “enhanced” specialized mobile radio system. Nextel was later bought by Sprint and then Sprint by T-Mobile. T-Mobile didn't comment. Also on the 800 MHz band, the FCC approved an order revising parts of the rules for public land mobile radio use of the spectrum, approved 4-0 by commissioners in 2018 (see 1810220050). The Land Mobile Communications Council filed a recon petition seeking modification and clarification of some of the technical rules for coordinating interstitial channel applications and got some of what it sought (see 1812280024). “We allow for some 800 MHz interstitial channel applicants to streamline their applications, clarify standards for calculating interference contours that define the distances that must be maintained between interstitial and incumbent stations, and refine certain technical elements of the interstitial channel rules,” said the order in docket 15-32. LMCC proposed that in calculating the potential for a proposed station to receive interference from an adjacent-channel incumbent, “it should be assumed that the proposed station will operate at maximum effective radiated power for its proposed antenna height,” the FCC said: “We do not agree with this element of LMCC’s proposal, which could artificially constrain the availability of interstitial channels even where applicants propose to operate at less than maximum power.”
Uncertainty remains about what COVID-19 will mean for AT&T and the wireless industry, Chief Financial Officer John Stephens said at a MoffettNathanson conference Tuesday. Speakers on a small-cells webinar said COVID-19 is adding to data growth and to the demand on carriers to densify their networks.
Verizon is reopening many of the company stores shuttered due to the COVID-19 pandemic, Chief Financial Officer Matt Ellis said at a MoffettNathanson virtual conference Monday. The carrier was down to 30% of stores open, which increased to 40% last week and is expected to hit 50% in June, he said. T-Mobile executives also said more stores are coming online in some locations based on state guidelines. While 80% of T-Mobile and 70% of Sprint stores closed, business as usual will return at a different rate in different parts of the country, said CFO Braxton Carter. The two companies combined earlier this year.
The FCC could act on CTIA and Wireless Infrastructure Association proposals for more changes to wireless infrastructure rules designed to accelerate siting of towers and other 5G facilities (see 1910300027) at commissioners' June 9 meeting, industry and agency officials said in interviews this and last week. The regulator wrapped up a comment cycle last year, with support from CTA and other industry groups and widespread opposition from local government groups (see 1911210054). That opposition continues.
The FCC’s 900 MHz order, set for a vote Wednesday, is expected to be approved with the full support of commissioners and few changes, if any, agency and industry officials said. The order would reallocate a 6 MHz swath to broadband while keeping 4 MHz for narrowband. The commissioners’ meeting will be brief, with items approved beforehand and no oral statements, the agency announced Wednesday evening.
T-Mobile said it had the most postpaid net adds of any of U.S. carrier in Q1, reporting for the first time since completing the buy of Sprint. Front-line employees “stepped up big” during COVID-19, but the company is feeling financial effects, new CEO Mike Sievert told analysts Wednesday. “As the nation starts to emerge” after COVID-19, the company expects customers to be looking for better value in a weakened economy and T-Mobile will benefit, he said. Temporary closing of many company stores meant lower subscriber adds, service and equipment revenue “in the very short term,” he said. Chief Financial Officer Braxton Carter said profit took a $117 million hit due to the cost of closing the Sprint deal, with an $86 million hit from the pandemic. T-Mobile will have a better view of pandemic effects as Q2 continues, he said. The company plans to provide full-year guidance on the Q2 call, Carter said. “What a crazy quarter this was,” Sievert said: “The crisis has highlighted how crucial connectivity has become to our daily lives.” The carrier is deploying 5G on 2.5 GHz spectrum from Sprint in New York and Philadelphia and 5G on 600 MHz now covers 215 million customers, T-Mobile said. Chief Technology Officer Neville Ray said T-Mobile will soon deploy on the 2.5 GHz band across the Northeast. Revenue was $8.7 billion, up 5% over last year, and profit $951 million, also up 5%. T-Mobile reported record low postpaid churn of 0.86% and free cash flow of $732 million headed into the first of two big spectrum auctions this year.
Chief Justice John Roberts said the Telephone Consumer Protection Act is a popular law the Supreme Court doesn’t want to undermine, as it heard argument in a case Wednesday with broad implications for the statute (see 2001130044). Other justices said similar, and experts don't expect the entire regime to be overturned. The court heard the case via teleconference, with justices calling in remotely because of COVID-19. Barr v. American Association of Political Consultants involves an AAPC challenge of a 4th U.S. Circuit Court of Appeals ruling, which declared a 2015 government debt collection exemption unconstitutional and severed the provision from the remainder of the TCPA.
Broadcasters, public safety groups and wireless mic makers raised concerns about proposals to allow TV white spaces (TVWS) devices to operate with higher power in less-congested areas, in comments on an FCC NPRM. Commissioners approved the notice 5-0 in February (see 2002280055). CTA, public interest groups and Microsoft urged the FCC to approve the proposal. Initial comments were due Monday in docket 20-36.