AT&T Stockpiling More 700 MHz Spectrum Threatens Interoperability

AT&T Mobility since its T-Mobile merger was shot down is attempting smaller spectrum acquisition deals like the one they had with Qualcomm that was approved. Despite AT&T losing some AWS spectrum to T-Mobile as part of the breakup agreement they gained some licenses to 700 MHz airwaves from Qualcomm and now want more from 700 MHz LLC even if threatens any future hope of 4G LTE Interoperability (700 MHz Interoperability 12-69). To submit non-docketed comments/pleadings or confidential pleadings to the FCC regarding this application groups or individuals participating must have registered with the FCC to participate in Universal Licensing System proceedings. Once logged in a pleading for ULS File Number 0005262760 which is the file number associated with this application can be submitted. Petitions to Deny this application are due by July 25th, 2012 with Oppositions due August 6th, 2012 and Replies due August 13th, 2012. I have already participated in this proceeding myself submitting my concerns stating why the deal should either be conditionally approved or denied. As it is much smaller than AT&T T-Mobile merger and is purely a spectrum swap there are less competitive concerns than there were for that proposed merger but some concerns do exist that need addressing.

As noted above the transaction(s) at issue here could further derail or threaten any future hope for 4G LTE device carrier interoperability among carriers offering 4G LTE services and as such the FCC should carefully review and evaluate all the evidence submitted for or against the transaction(s) at issue here. The FCC as I will explain in an upcoming article should implement and enforce 700 MHz interoperability rules which will benefit smaller carriers and foster greater competition. This is because the Big 2 carriers AT&T and Verizon have benefited from a non interoperable wireless market even making devices on their own networks incompatible with each other’s network. So not only are devices on AT&T’s network incompatible with those pof smaller carriers including Sprint Nextel, T-Mobile USA, MetroPCS, Leap Wireless (Cricket), U.S. Cellular, C-Spire (Cellular South) etc but devices on AT&T’s network are also incompatible with those on Verizon’s network and vice versa.

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Verizon T-Mobile Deal Appeasing FCC To Allow SpectrumCo Swap

According to the rumor mill Verizon’s proposed AWS spectrum swap with T-Mobile and their 700 MHz divestitures are appeasing the FCC into accepting the SpectrumCo swap but the DOJ is still worried about the JOE with the cable companies. Whether the FCC is intent on approving it its reported they won’t do so without DOJ support as well. This is good news for consumers and competition especially if reports are accurate that the DOJ might oppose these sweetheart deals.

Opposition to Verizon’s cable deals continue from public interest groups and consumers wanting to ensure sufficient broadband and mobile broadband competition continue despite the agency resale and joint operating entity agreements
between these companies. Since a Comcast executive has admitted this is an integrated transaction both the DOJ and FCC should be examining both aspects in combination. The fact is as bad as both the license transfer and JOE are individually they are far worse together for consumers. The Consumers Federation of America has even spoken out that the JOE ends the 1996 Telecommunications Act’s competitive promise for consumers by turning competitors into partners so they can divy up the spoils of the Internet market by dividing the Internet amongst themselves. These deals must not be allowed to proceed at least not with the JOE. The license transfer must either be conditionally approved and the JOE denied or both rightly denied.