The future of telecom regulation is fraught with uncertainty post-Chevron, Mintz lawyers concluded during a webinar Wednesday, focusing primarily on four recent U.S. Supreme Court Cases: Loper Bright (see 2406280043), Ohio v. EPA and SEC v. Jarkesy (see 2407220048) and Corner Post (see 2407010035).
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
The Biden administration appears headed toward a coordination and licensing framework in the lower 37 GHz band, one of five targeted for further study in the administration’s national spectrum strategy (see 2311130048). Analysts told us wireless carriers likely have little interest in seeing the band set aside for licensed use, unlike some other bands the administration is studying, especially lower 3 GHz and 7/8 GHz. The FCC will probably seek comment on 37 GHz in a public notice “on or about” Aug. 6, NTIA said in a recent blog.
Verizon lost 410,000 prepaid wireless customers tied to the end of the affordable connectivity program in Q2, the company said Monday as it became the first major wireless carrier to report earnings since the impact of ACP's demise could be measured. Overall prepaid customer losses were 624,000. But Verizon also gained a net 148,000 postpaid customers, which beat expectations. Revenue of $32.8 billion just missed consensus estimates. Though most numbers were positive, Verizon was down 6.08% to $39.09 for the day.
The FCC Thursday unanimously approved, as expected (see 2407160048), an NPRM that proposes industry-wide handset unlocking rules, requiring all mobile wireless providers to unlock handsets 60 days after they’re activated, unless a carrier determines the handset “was purchased through fraud.” The only change of note was an edit on handset and fraud issues added at Commissioner Brendan Carr's request, an FCC official said.
Verizon CEO Hans Vestberg, who earlier met with FCC Chairwoman Jessica Rosenworcel to oppose giving FirstNet and AT&T control of the 4.9 GHz band (see 2407010041), discussed the band with Commissioners Geoffrey Starks and Nathan Simington. Vestberg repeated arguments that the FCC shouldn’t provide AT&T free access to mid-band spectrum valued at more than $14 billion. “If the Commission chooses to make the 4.9 GHz band available for public safety and commercial wireless use, it must assign this spectrum through an appropriate competitive process (e.g., auction, bidding process, etc.) rather than gifting the spectrum to one commercial provider,” said a filing Thursday in docket 07-100. AT&T didn’t comment. The filing doesn’t clarify how Verizon arrived at the $14 billion figure.
Officials with the 12 GHz for 5G Coalition remain hopeful that FCC action in coming months will allow use of the lower 12 GHz band for fixed-wireless deployments, they said in interviews. In addition, should the FCC act soon, the band could still play a part in some state proposals under the broadband equity, access and deployment (BEAD) program, the officials said. The coalition had hoped for action early in 2024 (see 2312270045).
Smart city applications are joining the list of factors driving the need for more licensed and unlicensed spectrum, spectrum and smart city experts said Wednesday during a Broadband Breakfast panel discussion. Beyond more spectrum, smart cities will require a lot of spectrum sharing and maximized use of existing allocations, they said. There isn't one route to smart cities, and the spectrum isn't needed for a single purpose, said Richard Bernhardt, Wireless ISP Association vice president-spectrum and industry. Cities rely particularly heavily on unlicensed spectrum for smart city applications, said Ryan Johnston, Next Century Cities senior policy counsel. He said municipal governments are often left out of spectrum strategy and policy discussions, even though they are becoming big consumers of spectrum. He said they should be at the table for spectrum sharing and allocation discussions.
FCC Chairwoman Jessica Rosenworcel said Thursday that she circulated for a commissioner vote an NPRM seeking comment on further changes to rules for the citizens broadband radio service band. An FCC and NTIA agreement unveiled Wednesday on broader use of CBRS (see 2406120027) shows what's possible when you push the boundaries of how spectrum is shared, experts said Thursday during a discussion at the International Symposium on Advanced Radio Technologies (ISART) conference in Denver.
The U.S. needs to move toward a firm date for the end of mandatory simulcast of ATSC 1.0 and 3.0 signals and fully transition to ATSC 3.0, but it's too early to say when that date should be, NAB CEO Curtis LeGeyt said Thursday at the NextGen Broadcast Conference in Washington. Conference-goers applauded the call for a transition deadline, and FCC Commissioner Brendan Carr echoed it, saying he would support a proceeding about the issue. Carr also suggested gauging broadcast and wireless industry interest in an "incentive auction 2.0" for low-band spectrum.
The work that industry and government are doing addressing “clutter analysis” and dynamic sharing is critical to the future of wireless, Shiva Goel, NTIA senior spectrum adviser, said at an International Symposium on Advanced Radio Technologies (ISART) conference on Tuesday. Goel said the government, working with industry, is making progress. The Denver conference's main focus this week is on propagation models that account for the impact of clutter, including foliage and buildings, on wireless signals.