Inflation is running “at a faster clip” than AT&T expected, and is the biggest concern for the immediate future, AT&T Chief Financial Officer Pascal Desroches warned at a Credit Suisse financial conference Tuesday. Desroches said AT&T may have to consider raising prices for its service plans for a second time this year (see 2205030066). “We built in a fairly healthy level of inflationary expectations into our budget,” Desroches said: “With that said, it's running harder than we thought, and you saw one of the things that we did recently was to raise prices in response. … We're seeing inflation in labor, supplies, energy, transport.” The AT&T executive expressed optimism about the C-band, with the next phase of deployment looming. “Our network is reliable, consistent, and it's better than it's ever been and getting better every day,” he said. He noted the nearly $40 billion of mid-band spectrum the company bought in the 3.45 GHz and C-band auctions: “We expect to deploy that over the next 18 to 24 months and as we deploy, the network will only get better.” Churn was low during the COVID-19 pandemic, as many consumers benefited from stimulus payments, Desroches said. Churn could rise due to inflation, he said. “As I look at the inflationary expectation over the next several quarters, it's hard for me to envision that that's not going to impact the consumers negatively and that we and others will see some pressure,” he said. Wireless competition isn’t increasing, Desroches said. The market has “been competitive for some time” and “remains competitive,” he said. AT&T has been targeting segments of the population that are underserved, he said, citing FirstNet and outreach to Hispanics. “We are being very surgical,” he said. “We have stepped up our investment [in wireless] to match the competitors and that has helped enormously,” he said. Other markets are also growing, Desroches said: “You're seeing kids getting phones at an earlier age. You have older people getting phones that never had them. You're seeing all of a sudden a separation of your work life from your home life, so people [are] getting multiple devices.” New business formation has also been “really strong” since the start of the COVID-19 pandemic, he said. AT&T recently eliminated HBO Max from its premium unlimited wireless plan as a free perk for new customers. Desroches said the carrier is trying out other included features, such as hot spot data, to bring in more customers. “It’s really not anything against HBO Max,” he said: “It’s us trying to drive deeper penetration to different portions of our customer base.”
As the focus on 6G intensifies, Henning Schulzrinne, former FCC chief technology officer, warned an IEEE summit Tuesday that 5G hasn’t turned out as expected, at least not yet. We’re at “an inflection point” in the discussion of next-generation networks, said Schulzrinne, now a Columbia University professor.
Executives from Helium and cryptocurrency company Emrit predicted a bright future for decentralized wireless networks, during a webinar Monday. Helium’s centrally managed IoT network offers more than 800,000 IoT gateways in some 52,000 cities around the world. Speakers said PlanetWatch, Dimo and Pollen are offering similar networks. “It’s commercial hardware,” said Alvaro Gracia, partner, Helium Funds at Borderless Capital. “There’s no real estate costs because people are placing them on their premises,” he said: “The blockchain automation makes the whole backend model very efficient -- you don’t need accounting departments, you don’t need a lot of processes.” Helium and similar companies are addressing “a problem that the IoT industry has tried to solve for a very long time,” said Pradhyum Ramkumar, Emrit head-IoT and 5G. Sensor data usage on the Helium network is growing 70% every month, he said: “The proof is in the pudding.” People are "finally realizing that there is a great, very low cost [long range] network available,” he said. “Very little capital was deployed by Helium to do this” with the costs paid by hosts, who are reimbursed by users, he said. Helium “laid the groundwork,” being followed by competitors, said Ryan Derouin, Emrit head-commercial. One example of the kind of network being built is a local coffee shop using citizens broadband radio spectrum, he said. “People need data, they’re in there streaming data … and they need the access,” he said. “The coffee shops want to drive traffic.” Carriers “can’t put a tower every 50 feet” as the demand for data grows, he said.
NAB urged the FCC to reserve 55 MHz of spectrum for licensed mobile operations, including electronic newsgathering (ENG), as part of the agency’s response to U.S. Court of Appeals for the D.C. Circuit’s remand of part of the FCC’s 6 GHz order. Wi-Fi advocates said the FCC should address the court’s concerns and move on to a further liberalization of the rules (see 2204080042). Replies were posted Thursday and Friday in docket 18-295. The court otherwise upheld the order, which opened the band for sharing with Wi-Fi (see 2112280047).
The FCC is open, as of Thursday, for in-person meetings, but most industry and FCC officials don’t expect a large early wave of visits to the FCC, with many meetings remaining virtual. Aides to the FCC commissioners told us Friday they haven't been getting calls for in-person visits since Chairwoman Jessica Rosenworcel announced the reopening Wednesday (see 2206080055).
Major industry players expected to play in the 2.5 GHz auction, which starts July 29, were on the list of bidders with complete applications to participate in the FCC’s next big 5G spectrum sale, the FCC said Thursday. AT&T, Dish Network, bidding as Carbonate Wireless, T-Mobile and UScellular are among the 39 with complete applications. Verizon put in an application, deemed incomplete, joining 53 bidders on that list. There appears to be more interest in this auction than in the 3.45 GHz sale, which had 42 applications, while the C-band auction had 74 applications filed. Smaller players are among the qualified bidders, with 17 seeking rural provider bidding credits and nine small business credits. Questions continue over the extent to which small players will jump in or T-Mobile will dominate the auction (see 2204140062). T-Mobile has a dominant position in the band since its buy of Sprint, and is using 2.5 GHz for its 5G rollout. “At first glance, the list of bidders for 2.5 GHz auction (whether qualified or not) does not reveal too many surprises,” emailed Sasha Javid, BitPath chief operating officer. “Submitting an application does not mean that Verizon or AT&T are necessarily interested in bidding for this spectrum,” he said: “It is a low-cost way to muddy the waters for bidders that are truly interested in acquiring the spectrum. If there is one initial takeaway, it is that this auction did not get as many prospective bidders as the [citizens broadband radio service] auction, which also featured smaller county-sized licenses.” The 2020 CBRS auction attracted 271 qualified bidders (see 2007200049). Those with complete short-form applications must submit upfront payments June 23, to be deemed qualified bidders. Others must resubmit their applications, and make an upfront payment, by the same date.
The FCC’s public notice seeking a record refresh on improving how wireless 911 calls are routed to the appropriate first responders got only minor changes over the draft version, based on a side-by-side comparison. Commissioners approved the notice Wednesday (see 2206080040), and released it Thursday. Officials said Wednesday they didn’t adopt all the language proposed by APCO (see 2206060052) on emergency services IP networks (ESInets), but some was added. In an added sentence, the FCC now seeks comment “on whether wireless carrier plans and timelines for implementing location-based routing vary depending on whether PSAPs are using legacy E911 technology, are transitioning to NG911 (i.e., have implemented discrete NG911 elements, such as ESInets, but have not fully implemented NG911), or have achieved full end-state NG911 with all elements included.” The final version makes eight references to ESInets, compared with one in the draft. A new sentence asks: “How if at all is location-based routing different for [public safety answering points] that are not connected to an ESInet?” The FCC also added comment dates -- July 11 for initial comments, July 25 for replies -- which were based on the release date.
The FCC’s newly reconstituted Technology Advisory Council met for the second time Thursday, dedicated to exploring 6G, as directed by FCC Chairwoman Jessica Rosenworcel. She and TAC members said 5G is still in early stages, but it’s not too early to focus on the next generation of wireless. TAC heard updates from its working groups on the work they have done so far during a virtual meeting.
The FCC unanimously approved a public notice seeking to refresh the record on improving how wireless 911 calls are routed to the appropriate first responders (see 2206060052), as expected. Commissioners at Wednesday's meeting also agreed to propose a $34,000 fine against an Idaho man for allegedly interfering with emergency communications as firefighters took on a wildfire, the largest fine of its kind, officials said.
FCC commissioners approved a notice of inquiry 4-0 Wednesday on how to facilitate access to spectrum for offshore uses and operations. FCC officials said, as expected, there were no major changes over what was circulated three weeks ago by Chairwoman Jessica Rosenworcel (see 2206030029). Commissioners also adopted an NPRM before the meeting that seeks comment on a statutory requirement to collect annual data on the price and subscription rates of internet offerings through the affordable connectivity program (see 2206020058). The item wasn’t published Wednesday.