FCC Commissioner Jessica Rosenworcel’s open mindedness on a SoftBank/T-Mobile deal (CD May 23 p1) shouldn’t be mistaken for “receptivity” on her part, MoffettNathanson analyst Craig Moffett told us. “It is clear that SoftBank’s desire to do a deal hasn’t cooled one iota,” he said. “The signals out of Washington also haven’t moved one iota.” Prospects for regulatory approval remain “extraordinarily low,” he said Friday. If anything, AT&T’s proposed buy of DirecTV and Comcast/Time Warner (see separate report above in this issue) “make it even easier” for the Department of Justice to reject SoftBank/T-Mobile, Moffett said. “Politically, Washington would have to be sensitive to either of the two poles of approving everything, which would make them appear like they were asleep at the switch, or, alternately, rejecting everything, which would make them appear recalcitrant and obstinate."
The “laundry list” of upcoming changes to U.S. wireless networks means tower companies have room to grow and will become increasingly attractive targets for acquisition, Wells Fargo analyst Jennifer Fritzsche said Thursday in a note to investors. Fritzsche attended PCIA’s Wireless Infrastructure Show in Orlando this week, which she summed up with a panelist’s quote that “the runway is very long.” Upcoming catalysts include the FCC’s AWS-3 and TV incentive auctions, Fritzsche said. The AWS-3 auction is likely to be a boon for tower companies, she said. She also noted additional catalysts, including the continued rise of small cells, spectrum densification efforts from Verizon and AT&T, Sprint’s rollout of its 2.5 GHz spectrum, T-Mobile US’s rollout on the 700 MHz A block and continued upgrades to LTE Advanced, 5G and Voice over LTE.
Nearly 80 percent of smartglasses will be Wi-Fi enabled by 2015, said research firm Strategy Analytics, in a Thursday release (http://prn.to/1lXcnpz). “For the smartglasses user, WiFi is a key enabler, allowing the user to upload HD video recorded on the device to video sharing services,” said Matt Wilkins, a director at Strategy Analytics. The firm predicted the number of Wi-Fi-enabled smartglasses will jump from 1.2 million in 2014 to 4 million in 2015, mostly driven by Google devices. “We have to think Samsung and Apple are also eyeing the segment and will be potential long-term rivals,” he said.
Blue Wireless called on the FCC to approve its previous application to serve as an eligible telecommunications carrier for New York state. “The requested ETC designation will promote the public interest by providing eligible low-income consumers a choice of a significant new facilities-based competitor in the marketplace for Lifeline services,” Blue said in a filing at the FCC (http://bit.ly/ReBE4T). “Blue Wireless’s entry into the Lifeline market will create competitive pressure on all Lifeline providers, resulting in a higher level of service quality, more competitive pricing and advantageous service options for Lifeline service for eligible consumers in New York.”
The FCC needs to go slow as it finalizes rules for the 3.5 GHz shared-use spectrum band, balancing “implementation of this new sharing model and incentives to invest in the technology necessary to make it work,” AT&T Assistant Vice President Federal Regulatory Stacey Black said Thursday in an AT&T blog post. Under the FCC’s proposal Priority Access Licensees (PAL) would share the spectrum with General Authorized Access (GAA) users, similar to unlicensed use, he said (http://bit.ly/1jz8BEw). AT&T recommends a “transitional, phased-in, interim approach,” dividing the spectrum into PAL-only shared use and GAA-only sub-bands, he said. “This will allow PAL and GAA service providers to develop their products for initial deployment in a familiar environment, such as in our case, licensed geographic areas with a five-year license term and a renewal expectancy coupled to build-out requirements,” Black said. “Having separate PAL and GAA sub-bands would provide immediate access for deployment without any fear of interference and 100 percent of the attention can be focused on preventing interference to/from the federal incumbent users.”
Sprint joined the 4G Americas Board of Governors, the group said Wednesday. AT&T and T-Mobile US are already represented on the board, which advocates for “the advancement and full capabilities of LTE and LTE-Advanced technologies” in the Americas, the group said.
The FCC sought comment Wednesday on Verizon’s proposed buy of seven personal communication service (PCS) licenses for Hawaii from Coral Wireless. “Coral would lease back spectrum from Verizon Wireless for up to 12 months after consummation of the proposed transaction, the Applicants say, for purposes of avoiding service interruptions to Coral’s customers,” said an agency public notice (http://bit.ly/1o77cYW). “The Applicants assert that, as a result of this transaction, Verizon Wireless would gain additional spectrum capacity that would help address growing customer demand for broadband and other wireless services in Hawaii.” Petitions to deny are due June 4, oppositions June 16, replies June 23.
The FCC asked for comment on Cincinnati Bell’s proposed sale of its spectrum licenses in a complex deal involving Grain and Verizon. The transaction covers six AWS-1 licenses, two personal communications service (PCS) licenses and a single 700 MHz A-block license. The licenses would be sold to Grain, which would then transfer or lease the spectrum to Verizon. Grain in turn would pick up an AWS-1 license from Verizon. “According to the Applicants, these proposed license assignments and long-term spectrum leasing arrangements follow the decision by Cincinnati Bell Wireless to exit the wireless marketplace,” the FCC said in a Wednesday public notice (http://bit.ly/1mZtJVJ). “According to the Applicants, the proposed transaction would allow Verizon Wireless to obtain additional spectrum capacity to meet growing customer demand for wireless broadband services and allow for contiguous spectrum both in larger blocks and more aligned with spectrum it holds in adjacent markets.” Last month, Cincinnati Bell unveiled plans to sell off its spectrum licenses as it exits the wireless business for $210 million (http://bit.ly/1lRqMDL). Petitions to deny are due June 20, oppositions June 30 and replies July 8, under the pleading cycle established.
AT&T has done some 60 spectrum deals in recent years and is in good shape headed into the AWS-3 and TV incentive auctions, Chief Financial Officer John Stephens said Wednesday at a J.P. Morgan financial conference. But he also sounded bullish on AT&T participation in both major auctions (CD May 16 p5). “We certainly look forward to participating not only in the AWS-3 but in the broadcast spectrum [auction],” Stephens said. “The really critical observation for us is that we believe that auctions will be competitive and we believe the strong balance sheet, particularly in our industry … is going to be real competitive advantage in that bidding process.”
SureCall said the FCC certified two of the company’s most popular industrial in-building cell signal boosters as meeting the agency’s new standards. The devices are the Force5 Industrial and the DualForce Industrial boosters. Each covers up to 80,000 square feet of space.