Early Activation of Extra Licensed C-band Spectrum Will Enhance 5G Services and Competition

On August 14, Verizon announced that it has gained access to all of the C-band spectrum that it acquired through the FCC's spectrum license auction in March 2021. And today, August 16, it is reported that AT&T has doubled its available licensed C-band spectrum for 5G deployment. Apparently, the C-band spectrum for both providers was cleared ahead of schedule. Consumers will benefit from the network coverage and performance improvements enabled by the activation of valuable C-band (3.7 GHz) spectrum. And this development should enhance the overall competitiveness of the wireless market.

In an October 2022 blog post, I noted findings by OpenSignal that activation of C-band spectrum was leading to improved speeds for Verizon's and AT&T's respective 5G network services. And now with additional C-band spectrum available for use, Verizon and AT&T will significantly boost the speeds and capacity of their 5G service offerings. According to a Verizon press release:

Verizon won C-Band licenses for between 140-200 MHz in all available markets, and began deploying 60 MHz in the first 46 areas in 2022. As the additional spectrum has been cleared by satellite companies outside of the first 46 areas, Verizon has been able to deploy 5G Ultra Wideband using a portion of its licensed bandwidth in many more markets coast to coast. Now, with final clearance from the satellite incumbents, Verizon will be able to use the entirety of its licensed C-band spectrum, an average of 161 MHz coast to coast with some markets accessing a full 200 MHz. Verizon has been deploying equipment that is capable of the full 200MHz of bandwidth, so with a mere software update, customers will start to see the effects of this dramatic increase in bandwidth in the immediate next few days and weeks.

And as observed a news article in FierceWireless, AT&T combines C-band spectrum with 3.45 GHz spectrum nationwide, and its 5G mid-band network now covers over 175 million people, and its nationwide 5G network, including low-band spectrum, covers approximately 290 million people. 

Verizon's press release states its 5G services currently are available to over 222 million people in 359 markets. It also is reported in FierceWireless that Verizon will be operating its 5G network using C-band spectrum at full power in the vicinity of airports. Free State Foundation President Randolph May and I wrote about the FAA's questionable late-in-the-game attempt to halt full use of licensed C-band spectrum by Verizon and AT&T in a November 2021 Perspectives from FSF Scholars, "The FAA Should Stop Interfering With 5G in the C-Band." The FCC has "unified jurisdiction and regulatory power" over commercial spectrum, not the FAA. And that midnight hour dispute regarding C-band spectrum near airports almost certainly would have been avoided had the FAA been more engaged earlier in the Commission's C-band proceeding, when it had ample opportunity to do so. Interagency disputes over spectrum have been too numerous in recent years, and the effect of those disputes is detrimental to the full use of valuable spectrum and timely deployment of next-generation wireless services. As President May and I also wrote a February 2022 Perspectives from FSF Scholars, "Congress Should Require Better Agency Coordination of Spectrum Policy."

In Early 2023, Fixed Wireless Access Services Are Still Going Strong

On April 24 and 25, T-Mobile and Verizon Wireless released their respective first quarter results for 2023. Once again, both nationwide mobile providers reportedly had strong net subscriber additions to their fixed wireless access (FWA) broadband services.  

T-Mobile reportedly added 523,000 net subscribers to its FWA services. According to a May 17 article in FierceWireless,T-Mobile "has a goal to grow its existing 3.2 million FWA customers to around 7 million to 8 million FWA customers by the end of 2025" and that "it is looking at various options that may allow it to grow beyond that 7 million or 8 million figure."

 

An April 25 article in FierceWireless by Sue Marek states that Verizon "reported 393,000 FWA net adds in the quarter, bringing its total FWA subscriber base to 1.9 million. Of those 393,000 FWA net adds, 137,000 came from the company's Business group." Additionally, an April 25 article in FierceWireless by Diana Goovaerts notes that Verizon "stands to gain 100MHz of additional C-Band spectrum later this year which it plans to deploy in urban areas to benefit FWA and wireless customers who are currently being served with 60MHz of C-Band."

 

With increased access to C-band spectrum, continued expansion of 5G network coverage, and growth of fiber for backhaul support, FWA is likely to be an attractive option for more Americans by the end of the year. And, as observed in a November 1, 2022 blog post, FWA is a particularly attractive option for those residing in areas with geographical terrain that are difficult-to-reach as well as in areas with lower population densities. These benefits of FWA are the subject of my April 2022 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice." 

 

However, a replenished spectrum pipeline is a necessary condition for realizing the full potential of FWA and for maximizing the competitiveness of the broadband services marketplace. My blog post from March 9 of this year called attention to the lapsing of the FCC's authority to conduct spectrum license auctions. And the Free State Foundation's April 17 public comments to the NTIA urged the timely adoption and implementation of a National Spectrum Strategy that will boost the supply of spectrum for commercial and other private uses, particularly for licensed commercial use. Congress should promptly act to restore the FCC's spectrum auction authority, and the NTIA should act timely in adopting the implementation plan for the long-awaited National Spectrum Strategy.  

Ookla Report Shows U.S. Progress in 5G Mobile Wireless Speeds

The boost to mobile wireless speeds from 5G networks – and increasing use of C-band spectrum for 5G – are reflected in Ookla's Speedtest Global Index for the United States for the third quarter of 2022. According to Ookla: 

T-Mobile had the fastest median 5G download speed in the U.S. at 193.06 Mbps during Q3 2022, a slight increase over Q2 2022. Verizon Wireless remained second, and saw a slight increase to 119.80 Mbps in Q3 2022. AT&T remained third at 81.22 Mbps — a slight increase from Q2 2022.

For the third quarter of this year, Ookla found that the median download/upload speeds for mobile wireless broadband in the U.S. – encompassing 5G as well as earlier generation networks – was 68.34 Mbps/8.56 Mbps and the mean speeds were 141.54 Mbps/15.48 Mbps. Ookla's report also includes comparative evaluations of latency and video support capabilities by the three competing nationwide mobile wireless providers.

 

Again, speed and other performance figures can be expected to continue to improve by the end of this year and well into 2023 – particularly for 5G – as AT&T and Verizon continue to phase-in their licensed C-band spectrum for 5G services and T-Mobile brings online additional licensed spectrum in the 2.5 GHz band that it has acquired through the FCC's Auction 108. 

Report Finds C-Band Spectrum is Speeding Up 5G Services

OpenSignal released a report on October 12 titled "How C-Band is jump-starting AT&T and Verizon's 5G experience." According to the report, AT&T users' average 5G download speeds increased by 34.6% between March and September, going from 50 Mbps up to 67.3 Mbps. And during that same time span, Verizon users' 5G download speeds increased 15.8%, going from 70.3 Mbps up to 81.4 Mbps. As the OpenSignal report observes, during that seven-month timeframe, both mobile broadband providers boosted their use of licensed C-band spectrum in providing 5G services, with AT&T's use of C-band rising to more than 30% of user 5G readings while Verizon's use of C-band grew to almost 50% of user 5G readings.

The OpenSignal report findings reflect the importance of C-band spectrum for realizing the full potential of 5G wireless networks to enhance broadband market competition and offer value to consumers. As C-band increasingly is put into use, one can expect the performance metrics to show further significant improvements in speeds as well as capacity. 

The report also ought to serve as a reminder of the necessity of making more mid-band spectrum available for commercial use. There are presently three mid-band spectrum candidates for repurposing: the 3.1-3.45 GHz band, the 4.4-4.49 GHz band, and the 7.125-8.46 GHz band. Together, these three swaths comprise over 1,400 MHz of spectrum that potentially could be licensed for commercial wireless use, to the benefit of consumers, industry, and the American economy. Congress should pursue legislation to authorize the FCC to repurpose those bands for competitive bidding spectrum license auctions, and require NTIA and other executive branch agencies to coordinate efforts to address incumbent user needs and technical complexities that will need to be addressed in order to bring those auctions to fruition. 

Reps. Doyle and Latta Lay Out Plan to Reform Spectrum Management

Earlier today, on its "Congress Blog," The Hill published an op-ed penned jointly by Representatives Michael F. Doyle (D – PA) and Robert E. Latta (R – OH). Determined to avoid a repeat of the recent kerfuffle between the FCC and the FAA over 5G mobile operations in the C-Band, the two lawmakers set forth a four-element plan to overhaul interagency spectrum coordination processes.

As you undoubtedly recall, earlier this year the launch by Verizon and AT&T of 5G using C-Band spectrum licenses for which they contributed billions to the U.S. Treasury was impacted when, at the eleventh-hour, the FAA raised aviation-related concerns.

This occurred even though, prior to auctioning that spectrum, the FCC undertook a lengthy, deliberate, and engineering-informed process that considered, and addressed, potential interference.

Over the last few years, other disagreements regarding FCC efforts to repurpose high-value, underutilized spectrum similarly have played out in unprecedentedly high-profile fashion. They include the L-Band (vis-à-vis the Department of Defense), the 5.9 GHz band (the Department of Transportation), and the 24 GHz band (NASA and NOAA).

In "Aviation conflict highlights the need for spectrum management reform," Representative Doyle, Chairman of the House Energy and Commerce Committee's Subcommittee on Communications and Technology, and Representative Latta, its Ranking Member, expressed their well-founded concern that "declining faith in how these decisions are made is beginning to show signs of jeopardizing the consumer and economic benefits we've enjoyed for generations."

In response, the two laid out four principles that will guide their bipartisan efforts to "pursu[e] public oversight and restor[e] trust in the spectrum management process."

Those principles are as follows:

1. Reassert that it is NTIA that has the responsibility "to balance the needs and concerns of federal spectrum users, and to communicate those interests to its governmental counterparts and the public."
2. Promote "clear rules and expectations for federal and other spectrum users."
3. Ensure "that the government process for managing these critical spectrum resources [relies] on science and engineering …, not the institutional interests of a single federal agency."
4. Prioritize "the finality of [spectrum management] decisions."

Randolph J. May, the Free State Foundation's President, and Seth L. Cooper, its Director of Policy Studies and a Senior Fellow, made a number of similar points in "Congress Should Require Better Agency Coordination on Spectrum Policy," a February 15, 2022, Perspectives from FSF Scholars.

Specifically, Mr. May and Mr. Cooper (1) urged NTIA and the FCC to update their spectrum coordination Memorandum of Understanding to "expressly acknowledge NTIA's role in representing all executive branch agencies," (2) argued that "Congress should pass legislation to improve coordination among federal agencies," (3) noted with concern how the status quo "risks causing unnecessary delay and regulatory uncertainty," and (4) concluded that an improved process "could provide greater assurance to the public."

Ookla Insights: U.S. Leads World in 5G Availability

Ookla's report on global 5G speeds ranks United States 5G networks number one in the world for 5G availability, more than doubling the performance of networks in China, Canada, and almost the entire continent of Europe. This is an encouraging sign ahead of January 19th, the date when AT&T and Verizon will begin activating the high-capacity C-Band spectrum that should substantially boost U.S. 5G network speeds. But it also highlights the need to free more spectrum for 5G. 

Ookla defines 5G availability as the "percent of users on 5G-capable devices [who] spent the majority of their time on 5G," and the United States sits atop the world at 49.2%. This means that roughly half of all 5G device users in the U.S. had 5G connections during a majority of their time on wireless networks. China (20.1%), Canada (23.7%), Japan (7.6%), and the vast majority of European countries are far behind the U.S. on 5G availability, with only Netherlands (45.3%) and South Korea (43.8%) posting comparable availability above 40%.

The report also highlights that the U.S. lags behind other countries in median 5G speeds, but this is partly a function of spectrum policy and should be improved by fast-approaching carrier deployments of C-Band spectrum and other mid-band frequencies like the recently concluded 3.45 GHz auction. So far, U.S. 5G networks have largely relied on low-band spectrum for nationwide 5G deployment and high-band spectrum in certain dense urban settings. Mid-band spectrum, such as C-band spectrum and other nearby frequencies, has the combination of high-capacity and propagation over distances that leads to nationwide fast speeds.

Deployment of C-Band spectrum and other mid-band frequencies will also improve 5G speeds by densifying networks so a higher number of base stations each support fewer customers. The FCC should take additional actions to free mid-band spectrum for commercial use, such as setting a date for the 2.5 GHz auction and announcing auctions in additional bands, so U.S. 5G networks improve their speed ranking.

But the report also highlights that widespread 5G availability in the U.S. is in some ways more important than posting the fastest speeds. For example, Norway ranks second among countries for median 5G download speeds at 426.75 Mbps, but its availability is a mere 8.4%. This means 91.6% of Norwegians spend less than half their time on 5G when connected to wireless networks. This fact suggests that Norway's and other low-availability countries' top speed rankings are paper tigers – their 5G is fast but rarely used in real life. U.S. consumers are experiencing 5G far more often, and at high speeds, like the 160.41 Mbps median 5G speed Ookla measured in our nation's capital.

The United States' first place ranking for global 5G availability in Ookla's report is welcome news. The FCC should continue to act – especially by auctioning more mid-band spectrum – so the U.S. can also claim a top global ranking for speeds.

FCC Keeps C-Band Auction on Track with Today's Public Notice Adoption

Today the FCC continued its steady march toward a December 8 auction of high-value, mid-band spectrum for 5G and other advanced uses. The Free State Foundation offers its congratulations on the timely achievement, under challenging circumstances, of this important milestone.

At this morning's Open Meeting, the Commission adopted a Public Notice detailing application and bidding procedures for the upcoming Auction 107 of 280 MHz of spectrum in the C-Band (3.7-4.2 GHz). Chairman Pai and Commissioners O'Rielly and Carr voted to approve, Commissioners Rosenworcel and Starks approved in part and dissented in part.

Reallocation of the lower C-Band is a major component of Chairman Pai's 5G FAST plan to ensure American leadership in the deployment of 5G networks.

At the end of February, the agency adopted a Report & Order establishing rules that:

• Repack current C-Band satellite users into the upper portion of the band (4.0 - 4.2 GHz);
• Create a 20 MHz guard band (3.98 - 4.0 GHz);
• Reallocate to licensed, flexible use and set for auction the lower 280 MHz (3.7 - 3.98 GHz); and, critically,
• Incentivize existing licensees to vacate that spectrum more quickly than they otherwise would have to through the establishment of accelerated relocation payments.

The Public Notice approved today accomplishes the following:

• Specifies bidding procedures;
• Establishes an assignment phase during which winning bidders for spectrum that will be cleared first (that is, by December 2021) will receive interim and final frequency allocations; and
• Defines certain bidding thresholds, including minimum opening bids and bidding credit caps for small businesses.

The Public Notice has not been released yet, but the News Release can be found here.

FCC's C-Band Decision Is A Crucial Step Forward

Regarding the FCC's February 28 decision to seek comment on proposed auction bidding procedures in the C-Band proceeding, the following statement may be attributed to Free State Foundation President Randolph May:

In over four decades of closely observing, and occasionally participating in, the formulation of communications law and policy, the C-Band proceeding is, without doubt, one of the most complicated the agency has had to tackle. And in light of the acknowledged need for the U.S. to free up more mid-band spectrum to support the advent of super-fast 5G networks, it is one of the most consequential too. While surely there will be much quibbling about various facets of the FCC's decision, to my mind, Chairman Pai and his Republican colleagues deserve much credit for proposing a sound way forward. Absent the willingness to consider somewhat novel approaches to address the need to repurpose this mid-band spectrum sooner rather than later, I suspect we'd still be stuck in neutral — and in today's technologically dynamic and competitive marketplace environment, being stuck in neutral doesn't advance overall consumer welfare or the national interest.

Report Compares Countries' Progress on 5G Spectrum Availability

On February 3, Analysys Mason released the latest update in its series on the global race to 5G.  In "International Comparison: Licensed, Unlicensed, and Shared Spectrum, 2017-2020," U.S. efforts to make new spectrum resources available for 5G network services are measured against efforts by several foreign nations, including Canada, China, Germany, North Korea, and the U.K. The report includes a useful chart comparing spectrum resources that each nation has made available for commercial use for 5G services since 2017 as well as spectrum expected to be available for 5G in 2020. 

One important step the U.S. can take in 2020 to further our nation's position in the race to 5G is ensure a prompt auction for C-Band spectrum that incentives incumbents to vacate the spectrum and cooperate in a speedy transition to prospective auction winners. In this regard, see Free State Randolph May's statement from February 6 regarding the FCC's plan to repurposing C-Band spectrum.

FSF President Randolph May Reacts to FCC's C-Band Satellite Proposal

The following statement may be attributed to Free State Foundation President Randolph May regarding the FCC's proposal for repurposing C-Band spectrum:

The FCC's proceeding looking to repurpose the C-Band is one of the most complex proceedings before the Commission, but surely one of the most important. The objective is to free up much needed valuable mid-band spectrum so that it is available for wireless operators to expand and enhance their networks to provide next-generation 5G services, while ensuring that incumbent providers in the band are able to continue to provide important services to cable operators and other video distributors with minimal disruption.

Importantly, there is widespread agreement that time is of the essence in repurposing the C-Band spectrum if the U.S. is not going to fall behind China and other countries in building out 5G networks. So, I readily commend FCC Chairman Ajit Pai for his diligence and hard work in keeping the FCC on track to act in a timely fashion.

The plan Chairman Pai announced today is a thoughtful effort to balance the various interests in a way that advances overall consumer welfare and the national interest. Because speed in repurposing the C-Band spectrum is all-important, providing sufficient compensation to the incumbent satellite operators to incentive their active cooperation and avoid litigation that might derail implementation is a key objective. In that regard, to ensure the prospect of sufficient payments, I might prefer a compensation plan that ties payments to incumbent satellite providers to the value of the spectrum to be auctioned. That said, while I haven't seen the details of Chairman Pai's plan and reserve judgment, the proposal contemplating that the satellite operators could receive up to $9.7 billion in accelerated relocation payments if certain repurposing timelines are met appears to be a meaningful step in the right direction of providing a sufficient incentive for the incumbent providers to cooperate.