AT&T agreed to buy Sprint’s 19 2.3 GHz Wireless Communications Service A-block and B-block licenses, which cover markets across the South, including Florida, Georgia and Texas. The carriers did not disclose the financial details of the deal in a joint FCC filing seeking regulatory approval. AT&T has made multiple purchases of WCS spectrum in the past, including a set of transactions that included its $600 million deal in 2012 with NextWave Wireless, along with purchases from Comcast, Horizon Wi-Com and San Diego Gas & Electric (CD Dec 20/12 p13). AT&T said in the FCC filing that the WCS spectrum would be used for “mobile broadband use,” but did not elaborate. An AT&T spokesman later said the carrier is “optimizing spectrum to help address soaring demand and continue to provide a great mobile Internet experience for our customers.” Sprint declined to comment beyond what was included in the FCC application.
Workers at six Verizon Wireless stores in Brooklyn, New York, voted to unionize, the Communications Workers of America said Wednesday. The vote was a “huge victory,” CWA said, given what it called a decade-long effort by Verizon to do “everything possible” to prevent Verizon Wireless store workers from unionizing. CWA contends top Verizon executives were “camping out” at the six Brooklyn stores before the union vote to “inundate the workers with anti-union propaganda.” More than 40,000 Verizon workers are union members, CWA said (http://bit.ly/1gILAKO). Verizon is “disappointed that 39 employees felt this way,” a spokesman said.
FCC Commissioner Jessica Rosenworcel “does not prejudge transactions that have not been filed,” a Rosenworcel spokesman said Thursday. The Wall Street Journal had reported that Rosenworcel has said in private meetings that she does not believe No. 3 and No. 4 U.S. wireless carriers Sprint and T-Mobile US can remain viable as independent entities (http://on.wsj.com/RWkytJ). FCC and Department of Justice officials have been skeptical of a merger of the two carriers, which would leave the U.S. with three major wireless carriers (CD Feb 6 p1).
CEA and the Aerospace Industries Association (AIA) reacted positively Wednesday to the disclosure that the Federal Aviation Administration is working with several industries to expedite allowing limited commercial operation of drones before federal rules are in place (CD May 14 p17). The associations teamed up in March to write the FAA a letter urging the “expedited consideration and approval” of a long-delayed rulemaking regulating the safe use of small commercial drones in U.S. airspace (CD March 28 p16). AIA views the disclosure that the FAA will expedite limited commercial unmanned aircraft system (UAS) operations as “a positive development,” Ali Bahrami, AIA vice president-civil aviation, told us by email. “The market potential for commercial operations is huge, and this constitutes a good first step. That said, a permanent final rule regulating small UAS is a critical requirement for safe commercial operations, and we look forward to the FAA publishing the proposed small UAS rule as scheduled, in November of this year.” Much like the rest of the aviation industry, AIA members “have been anxiously waiting for the release of the proposed rule and been urging the FAA to expedite the rulemaking,” Bahrami said. The joint letter that AIA and CEA sent the FAA in March “was not the only communication with the FAA,” he said. “In fact we are in constant communication with FAA staff and feel that our concerns regarding the delayed rulemaking have been taken into consideration.” At CEA, “we commend the FAA for its commitment to work with industry to allow limited commercial use of drones,” President Gary Shapiro said in a separate email. “This is an important first step to allow productive drone use to transform industries and create jobs. As the most innovative country in the world, we should be a leader not a laggard in adopting new technology. We look forward to working with the FAA to create clear rules and a clear policy framework that unleash the explosive innovation this promising technology will bring.”
The 800 MHz Transition Administrator asked the FCC to extend by another six months, until Dec. 31, the “true-up” date for calculating whether Sprint owes the government money as part of the 800 MHz transition. When the FCC approved its landmark 800 MHz rebanding order in 2004 it required Nextel, pre-merger with Sprint, to pay the total value of the 10 MHz national spectrum license it got as part of the deal. The FCC set the price of the license at $4.8 billion. Subtracting the value of the spectrum Nextel agreed to give up, $2 billion, left $2.8 billion Nextel had to pay out in total rebanding costs. The FCC has been extending the true-up deadline in six-month increments since 2008. “Since the Commission released its True-Up Deferral Order, the 800 MHz reconfiguration expenditures paid by Sprint ... have increased” (http://bit.ly/1lpkxph). “A substantial number of licensees, however, have yet to complete rebanding and a true-up as of June 30, 2014 would be incomplete and would not include a significant amount of Sprint’s reconfiguration expenditures.”
The FCC Wireless Bureau sought comment on a request by the Association of American Railroads to be certified as a coordinator of Business/Industrial/Land Transportation frequencies in the 800 and 900 MHz bands. “AAR indicates that to meet the growing railroad spectrum needs it has been a license holder in the 800/900 MHz band and has been coordinating the use of the licensed spectrum among various railroads,” the Wednesday notice said (http://bit.ly/1lA2Shv). The bureau sought comment in the same notice on a request by National Frequency Coordination to be certified as a frequency coordinator for Part 90 frequencies. “NFC states that it was formed in 2013 and its team has extensive experience in spectrum management and frequency coordination,” the bureau said. Comments are due June 13, replies June 30.
The Federal Aviation Administration indicated it’s working with several industries to expedite limited commercial operation of drones before federal rules are in place, the Association for Unmanned Vehicle Systems International (AUVSI) said in a news release. The group said FAA Manager of Unmanned Aircraft Systems Integration Jim Williams offered that insight Tuesday at AUVSI’s conference in Orlando. “UAS have a host of societal and economic benefits, and many industries are clamoring to harness their capabilities,” said AUVSI President Michael Toscano. “Limited commercial operations is a good first step, but we also need to begin the small UAS rulemaking immediately.” Williams said the FAA is expected to allow limited commercial operations for filmmaking, powerline inspection, precision agriculture and flare stack inspection, AUVSI said. Williams said those industries approached the FAA for expedited approvals, the group said.
The FCC took in late ex parte filings by a host of companies and groups commenting on TV incentive auction rules, but posted them with a notice they had come in after last Thursday’s sunshine notice. The FCC is to vote on service and spectrum aggregation rules for the TV incentive auction Thursday at its open meeting. Under FCC rules, FCC officials can call parties to ask questions after the sunshine notice, which otherwise cuts off industry lobbying. U.S. Cellular filed an ex parte notice after a company official spoke Sunday and Monday with Wireless Bureau Chief Roger Sherman at Sherman’s request. The carrier had previously expressed concerns that in some markets it could be barred from buying 600 MHz spectrum because of the low-band spectrum it already holds. U.S. Cellular said it would prefer spectrum aggregation limits to the draft rules circulated for a vote by commissioners (http://bit.ly/RNoLzF). Most of the other ex parte filings were made after the Thursday cutoff but reflected earlier meetings at the agency.
The FCC has all the authority it needs under the law to limit bidding by the largest carriers in the TV incentive auction, Competitive Carriers Association President Steve Berry said Tuesday in a blog post (http://bit.ly/1opg8J6). “The stakes are high, so high that AT&T and Verizon are now questioning the FCC’s authority to adopt its auction proposal,” Berry said. “Fortunately for consumers, the Commission has the authority and an established record necessary to move forward."
Sprint supports Comptel’s call for a “managerial framework” for future FCC action on last-mile access, copper retirement and IP interconnection as the IP transition moves forward, the carrier said in a filing at the FCC. “As Sprint has said repeatedly in its comments in various pending proceedings, the IP transition is going forward despite reluctance by some that have vested interests in delaying the inevitable in efforts to preserve legacy revenues and enhance their market power,” Sprint said (http://bit.ly/QFAzD5). “The IP transition has been led by competitive carriers that have already deployed IP networks and seek now merely to retain what has been taken for granted since the passage of the ‘96 Act, namely interconnection rights and access to last-mile facilities owned by the incumbents at reasonable rates, terms and conditions."