Verizon and AT&T chase new spectrum deals
Leap and Verizon agreed major exchange of frequencies, Qualcomm urges FCC to finalize its sale of 700MHz licences to AT&T
Published: 2 December, 2011
READ MORE: Spectrum | US | Regulator | LTE
All the spotlight in the US is on AT&T's attempt to bolster its spectrum position by acquiring T-Mobile USA. But below that radar, the two major cellcos are busily making lower profile deals to gain new frequencies for LTE, even as Sprint recognizes that it should not lightly throw away its own superior spectrum position via Clearwire. Qualcomm is battling to get the sale of its 700MHz licences to AT&T cleared quickly, while Verizon has engaged in a spectrum swap with Leap Wireless.
AT&T's plan to acquire Qualcomm's 700MHz FLO licences has been held in suspended animation as the TMo case has rumbled on. It is now almost a year since AT&T agreed to pay $1.93bn for the frequencies previously used for the MediaFLO mobile TV service. These TDD frequencies would be used to supplement downlink capacity on AT&T's LTE network, which lives in a different part of the 700MHz band and uses FDD mode.
Unlike the TMo proposal, there has been no significant regulatory opposition to this plan, though rival carriers like Sprint have argued that the two acquisitions should be considered in tandem, as AT&T's total spectrum position should be reviewed. The DoJ completed its review of the transaction in February and last month, the FCC also said it planned to approve it.
Now Qualcomm CEO Paul Jacobs is pressurizing FCC chairman Julius Genachowski to finalize its approval. Jacobs and Qualcomm's government affairs chief Dean Brenner are arguing in FCC filings that the purchase does not raise concerns about market concentration and competition, and so should be green-lighted quickly. "Swift FCC approval now is critical to enable the deployment of new supplemental downlink technology on fallow unpaired spectrum and to realize the substantial public interest benefits created by the transaction," the company stated in its submission.
The review of the FLO deal was halted in the summer when the FCC decided to consider it in the light of the TMo proposal, but last week the regulator said it was likely to approve the transaction with certain, as-yet unspecified, conditions. The FLO frequencies in the D and E blocks of the 700MHz band cover over 300m POPs and include 12MHz in New York, Boston, Philadelphia, Los Angeles and San Francisco. AT&T may be required to divest some of the spectrum under the terms.
The FLO deal shows how much beachfront LTE spectrum is still in the hands of smaller players, and ripe to be snapped up by major cellcos without the obstacles attending a major acquisition. This week, Verizon has announced a deal to exchange a significant number of licences with Leap Wireless, a move which - if approved by the FCC - could reduce Leap's interest in taking AT&T/TMo's offloaded frequencies. It would also allow the flat rate operator to launch LTE in the key Chicago metro while bolstering Verizon's spectrum position in many parts of the country.
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