T-Mobile/UScellular Transaction Ripe for Agency Action

According to the FCC's website (see graphic below), the agency's review of the $4.4 billion T-Mobile/UScellular transaction has entered its final month. The record evidence overwhelmingly indicates that consumers, including but not limited to current UScellular customers, would be better off if this deal were approved. Therefore, action prior to the end of the 180-day shot clock is warranted.

In an Opposition to Petitions to Deny filed on January 8, 2025, FSF President Randolph May and Director of Policy Studies and Senior Fellow Seth Cooper expressed their view that the proposed transaction likely would produce pro-competitive benefits, benefits that would outweigh any potential harms. They also noted that arguments against the transaction generally lack supporting evidence and/or a specific nexus to the instant transaction.

T-Mobile and UScellular, GN Docket No. 24-286

Source: fcc.gov

As Mr. Cooper described in a post to the FSF Blog shortly after the parties filed their Public Interest Statement on September 13, 2025, that regulatory filing "presents a prima facie case that [the] proposed transaction … will bring public interest benefits that outweigh any potential competitive concerns."

Tangible benefits identified and documented include faster 5G mobile broadband speeds, higher data capacity, and greater availability of fixed wireless access (FWA) home broadband service, especially in rural areas.

Potential harms, meanwhile, are unlikely given the robust competition that exists in the mobile broadband marketplace, a landscape documented by the Free State Foundation in June 2024 comments to the FCC for its 2024 Communications Marketplace Competition Report. Consumers can choose between three nationwide providers, EchoStar's upstart network that is available to over 70 percent of the U.S. population, mobile virtual network operators (MVNOs) such as Spectrum Mobile and Xfinity Mobile, and regional providers.

Potential harms also would be mitigated by the specific nature of this transaction – in particular, the relative disparity in their respective subscriber bases (126 million versus 4.5 million), the limited extent to which the parties directly compete (as Mr. Cooper pointed out in a February 2025 blog post, the parties "apparently do not have an overlapping competitive presence in thirty-seven percent (37%) of the Cellular Marketing Areas (CMAs) implicated by the proposed deal"), and the fact that T-Mobile sets "its pricing and service terms on a nationwide basis."

In addition, approval of this transaction would enable the efficient and timely reallocation of spectrum to its highest and best use while we wait for Congress to renew the Commission's auction authority – a priority Senate Commerce Committee Chairman Ted Cruz (R-TX) discussed in his Keynote Address at the Free State Foundation's recent Seventeenth Annual Policy Conference (video available here).

BEAD Program Softens Stance on "Alternative" Technologies

In final guidance released on January 2, 2025, the National Telecommunications and Information Administration (NTIA) opened the door, ever so slightly, to Broadband Equity, Access, and Deployment (BEAD) Program projects utilizing unlicensed fixed wireless and low Earth orbit (LEO) satellites. By no means a course correction to a true technology neutral approach – end-to-end fiber proposals continue to be heavily favored without adequate regard for cost – at least providers using these so-called "alternative technologies" are no longer barred outright from participating in the $42.45 billion BEAD Program.

In the Public Notice, NTIA reiterated its position that states "must seek the most robust technology feasible at each location." Prior to this policy change, that meant (a) end-to-end fiber first ("Priority Broadband Projects"), and (b) cable broadband, digital subscriber line (DSL), or fixed wireless – using either licensed spectrum or a combination of licensed and unlicensed spectrum – second ("Reliable Broadband Service"). Projects using unlicensed spectrum only do not fall within the definition of "Reliable Broadband Service." Nor do LEO satellite-based offerings.

With this final guidance, NTIA will allow states to consider grant applications utilizing distribution technologies that meet the speed (100 Mbps downstream and 20 Mbps upstream) and latency (less than or equal to 100 milliseconds) requirements for "Reliable Broadband Service" but (in my view, at least) arbitrarily remain excluded from that category. Specifically, unlicensed fixed wireless and LEO satellite-based offerings now will be treated as quasi-eligible "Alternative Technologies."

However, and as I highlighted in "BEAD Program Technological Neutrality 'Fix' Falls Short," an August 2024 Perspectives from FSF Scholars, states may consider non-fiber "Reliable Broadband Service" technologies only where the cost to deploy fiber exceeds the "Extremely High Cost Per Location Threshold" (EHCPLT), an often unreasonably high bar that disregards the amount of time it will take to deploy fiber versus other technologies.

"Alternative Technologies," meanwhile, become eligible only after states "demonstrate that no ["Reliable Broadband Service"] was deployable for less than the EHCPLT by leveraging multiple strategies to obtain bids for Priority Broadband Projects and other ["Reliable Broadband Service"] projects that fall under the EHCPLT."

In other words, with this change the funding eligibility priority order has been expanded, somewhat, from two categories – end-to-end fiber followed by other "Reliable Broadband Service" – to three, with unlicensed fixed wireless and LEO satellite at the end of the line.

While in theory an improvement over the exclusionary approach originally set forth in the BEAD Program Notice of Funding Opportunity, the final guidance's creation of a third-place "Alternative Technology" category – well short of a full embrace of the concept of technological neutrality – may not have that much of practical impact.

FWA Make Further Strides, More Spectrum and Cell Sites Needed

In today's communications market, cross-platform competition is exemplified by fixed wireless access (FWA) broadband services. In the third quarter of 2024, consumer adoption of both FWA continued strong. 

According to a report in Light Reading, in the third quarter of 2024, Verizon had 2.67 million FWA subscribers – 1.64 million residences and 1.03 million for businesses. And a report at SDxCentral indicates that AT&T Air gained about 135,000 subscribers to its Internet Air FWA service, for a total of about 500,000. T-Mobile reported gaining 541,000 subscribers to its Home 5G FWA service during the quarter, bringing its reported total to over 6 million.  

 

Further growth is expected. It is reported in Fierce Network that Verizon plans to expand its C-band spectrum to 70% of its planned footprint by the end of this year and to double its FWA footprint to 90 million homes and businesses by 2028. Also, it's reported in Light Reading that New Street Research has predicted T-Mobile will add 1.45 million FWA subscribers next year, Verizon will add 1.3 million, and AT&T will add about 550,000. SDxCentral reported that T-Mobile has a goal of serving 12 million FWA subscribers by the end of 2028, and Verizon has a goal of serving 9 million by 2028. 

 

For the FCC, particularly under its prospective new membership in the second Trump Administration, increasing access to spectrum and ensuring streamlined permitting processes for constructing wireless infrastructure will be keys to realizing the future potential of FWA as a high-quality service and competitive choice for residential broadband subscribers in America. 

 

In July 2024 public comments to the FCC for its forthcoming Communications Marketplace Competition Report, Free State Foundation President May and I wrote:

To further promote competition, innovation, and investment in the broadband marketplace, the Commission should work proactively to make more spectrum available for commercial use and by removing regulatory barriers to broadband deployment… There is particularly strong demand for additional mid-band spectrum. The Commission ought to prioritize the lower 3.1-3.45 GHz band for study and prompt repurposing… Although proposals for repurposing different bands are at different stages of development and each faces unique challenges, the Commission should advance every proposal for spectrum that may realistically be suitable for commercial uses – whether on a licensed or unlicensed basis. A larger spectrum supply will enable more competitors to serve more Americans with next-gen services. 

For now, there is no spectrum in the pipeline for commercial services. A priority for the incoming Trump Administration will be to replenish that authority and restore the FCC's authority to conduct spectrum license auctions. Meanwhile, as indicated by an article in Fierce Networks, network densification – including constructing additional cell towers and other infrastructure – may be one way to expand network capacity while mid-band spectrum remains scarce. 

Report Chronicles the Competitiveness of Today's Wireless Services Market

On December 11, CTIA released a report by Compass Lexecon titled "An Economic Analysis of Mobile Wireless Competition in the United States." The report provides an excellent overview of data points demonstrating that the wireless market is effectively competitive. And as the report rightly concludes, the competitive state of the wireless market means that imposing "utility regulation like that found in Title II of the Communications Act is both unnecessary andlikely to be a harmful deterrent to future investment and industry performance due to imposed costs and diverted resources."

The Compass Lexecon report cites strong capital investment in wireless network infrastructure:  $364 billion in nominal dollars invested 2010 to 2022. It also cites rapid network deployment and upgrades, with a 64% increase in cell cites activated over the prior decade and 5G deployment by 3 nationwide wireless providers to 98% of the population. Also, speeds have quadrupled over the past seven years and doubled over the past three years. The number of devices and data usage per wireless user have risen, with overall U.S. mobile traffic growing at a compound rate of about 55% between 2010 and 2022, and overall subscribership grew at a compound annual rate of about 5% during that same time span. And inflation-adjusted wireless price indices published by the Bureau of Labor Statistics declined by 18%-to-19% since 2017, with the price of wireless declining over the past 24-month period while the price of other products has risen 12%. 

 

Citations to those data points as well as to other positive indicators of wireless competition are contained in Compass Lexecon's report. It is a worthwhile read.  

 

On December 14, the Free State Foundation filed public comments with the FCC in its Safeguarding and Securing the Open Internet proceeding. In those comments, we cite the strong competitive conditions of the wireless and overall broadband markets and make the case that imposing public utility regulation on broadband Internet access services is unjustified and harmful to investment and innovation. Wireless services have thrived in a light-touch regulatory environment and wireless competition is an important check on anticompetitive conduct. Wireless consumers are not facing any actual or likely harm that warrants public utility regulation, and regulating wireless services as a public utility would not expand or increase deployment of those services to anyone who does not already have it. 

AT&T Launches 5G Fixed Wireless Access Service

On Tuesday, AT&T announced the introduction of AT&T Internet Air, its 5G fixed wireless access (FWA) home Internet service, in 16 markets including Los Angeles, Philadelphia, and Detroit. Previously offered only to existing digital subscriber line (DSL) customers in certain areas, the expanded offering of AT&T Internet Air represents yet another milestone in the rapid rise of FWA as a viable competitive alternative to traditional wireline high-speed home Internet access.

In "Fixed Wireless Access Is Boosting Rural Broadband and Consumer Choice," an April 2022 Perspectives from FSF Scholars, FSF Director of Policy Studies and Senior Fellow Seth L. Cooper touted not only FWA's ability "to connect several million Americans in rural and small markets," but also to compete with wireline providers for home Internet customers in more populated markets. This announcement that AT&T is targeting major cities with its FWA service, along with the rapid FWA subscriber gains of T-Mobile, Verizon, and U.S. Cellular, confirm both of those predictions.

Source: AT&T Blog

In a blog post earlier this month, Mr. Cooper highlighted second-quarter FWA subscriber numbers from T-Mobile (509,000 net additions, for a total of 3.7 million), Verizon (384,000 net additions, for a total of 2.3 million, and U.S. Cellular (over 100,000 total subscribers). Notably, these services did not exist prior to 2021.

According to the Leichtman Research Group, T-Mobile and Verizon combined have added over 800,000 FWA subscribers for 5 quarters in a row. In the second quarter of 2023 alone, they added almost 900,000 subscribers – compared to less than 10,000 new cable broadband subscribers and a loss of nearly 62,000 by the top wireline phone companies.

In Comments filed in the FCC's 2022 Communications Marketplace Report proceeding, Free State Foundation scholars argued that the Commission should:

[C]ease its exclusively piecemeal evaluation of broadband marketplace competition that continues to rely on "siloed" service definitions. Instead, it should evaluate competition with a broader "broadband market" definition that takes into account fiber, cable, mobile, FWA, and satellite platforms. This broader outlook would more accurately reflect market realities and be a better guide to formulating Commission 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.  

FCC Set to Vote on Future Spectrum Use in the 12.2 GHz and 12.7 GHz Bands

At its May 18 public hearing, the FCC will be voting on a Report and Order and Further Notice of Proposed Rulemaking regarding use of spectrum in the 12.-12-7 GHz (12.2 GHz) band. The draft Report and Order, if approved by the Commission, would not authorize high-powered terrestrial mobile broadband services to operate in the 12.2 GHz band. The Report and Order cites apparent concerns about significant risk of harmful interference with existing and emergent services that use the 12.2 GHz band, including satellite services, as the basis for that policy conclusion. However, the Report and Order would continue investigation into the potential for terrestrial fixed use or unlicensed use in the 12.2 GHz band.  

The 12.2 GHz item now teed up for the Commission's May 18 public meeting also includes a Notice of Proposed Rulemaking and Order regarding expanded use of the 12.7-13.25 GHz (12.7 GHz) band for mobile broadband or other use. In its draft NPRM and Order, the Commission states:

[W]e propose to repurpose some or all of the 550 megahertz of mid-band spectrum for mobile broadband or other expanded use. The record demonstrates substantial support for repurposing these mid-band frequencies for next-generation wireless technologies including 5G, 5G Advanced, and 6G services that will depend on extremely high data rates, and the reliability, low latency, and capacity that the 12.7 GHz band spectrum can provide.

Without expressing any view on the merits of the Commission's determinations about potential significant harmful signal interference in the 12.2 GHz band or on any specific proposals for future use in the 12.7 GHz band, the Commission's forthcoming vote on the 12.2 GHz and 12.7 GHz bands is important because it is a step toward maximizing use of those valuable mid-band spectrum resources. The NPRM and Order on the 12.7 GHz rightly recognizes the significance of mid-band spectrum for the future of commercial wireless services in the U.S. And with the 12.2 GHz/12.7 GHz item scheduled for a vote on May 18, Commission appears to making a good faith effort to fulfill its public trust to promote valuable use of spectrum. 

New Report Puts a $60B Price Tag on NTIA's Fiber-Broadband Bias

A just-released study commissioned by the Wireless Internet Service Providers Association (WISPA) finds that the National Information & Telecommunications Association's (NTIA) departure from the concept of technological neutrality could increase the cost to extend broadband connectivity to those (largely rural) locations as yet unserved by as much as $60 billion.

"Getting to the Broadband Future Efficiently with BEAD Funding," a white paper by MIT's Dr. William Lehr, concludes that:

Ignoring wireless ISPs that use unlicensed spectrum increases the number of unserved locations by over 1.922 million locations, or by almost a third. Those locations are concentrated in rural locations where deploying [Fiber-to-the-Premises (FTTP)] is extremely costly and much more costly than for fixed wireless alternatives. Requiring that those locations be served by FTTP instead of lower-cost alternative technologies could increase costs by upwards of $30 to $60 billion depending on the distribution of fiber deployment costs for the unserved locations.

Free State Foundation scholars write regularly about the importance of technological neutrality. For example, in his response to Senator John Thune's December 2022 broadband oversight letter, FSF President Randolph J. May pointed out that "[t]he value of a technology-neutral approach to government-subsidy eligibility is that it maximizes the pool of potential applicants. Just as additional entrants in a competitive marketplace can generate greater efficiency, better quality, increased innovation, and lower prices, so, too, can additional applicants make the best use of grant money."

Consequently, Mr. May criticized NTIA's rules for the $42.45 Broadband Equity, Access, and Deployment (BEAD) Program because they (1) "embody a blind preference for fiber broadband networks," and (2) "exclude by name proven solutions – specifically, satellite-based services and offerings that rely exclusively upon unlicensed spectrum – despite their potential ability in some circumstances to deliver 'broadband' … most efficiently to a specific area."

And in "Senators Urge NTIA to Acknowledge Role of Broadband via Unlicensed Spectrum," a December 2022 post to the FSF Blog describing a letter from seven Republican Senators urging NTIA Administrator Alan Davidson "to continue working to advance broadband deployment in rural states and unserved areas by remaining technology neutral and creating rules and funding opportunities that allow all forms of broadband technology to compete," I explained that:

With respect to any given location, its unique features (population density, geographic features, and so on) can favor certain different distribution platforms –including fiber, cable, DSL, 5G, satellite, and fixed wireless – over others. Such factors influence investment choices in the competitive broadband marketplace, and government-led efforts to extend broadband infrastructure to areas still unserved ought to encourage similarly efficient and informed decisionmaking by subsidy recipients.

Carriers Set Record With New Fixed Wireless Subscribers

On October 21 and 27, Verizon Wireless and T-Mobile each released their third quarter results for 2022. Both nationwide carries posted record numbers of net subscriber additions to their fixed wireless access (FWA) broadband services. Verizon Wireless reported an impressive 342,000 fixed wireless net additions – a quarterly record for Verizon Wireless. And T-Mobile reported that it added a record high 578,000 high speed Internet customers. Although T-Mobile did not provide a specific service breakdown for that category, its record-breaking figure apparently consists primarily of net additions to its FWA services.

FWA services, which are increasingly offered using 5G networks, are particularly important for their ability to connect costly and difficult-to-reach geographic areas of the country. For more on that point, see my April 2022 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice." And along with cable mobile virtual network operator (MVNO) wireless services, FWA services are a vibrant form of intermodal competition in today's communications market. 

CTIA Annual Survey: Record-Breaking Investment Benefits Consumers

On Tuesday, CTIA released the 2022 edition of its annual wireless industry survey. Among other milestones, it documents an unprecedented level of investment, accelerated cell-site deployments enabled by regulatory reforms, the explosive adoption by consumers of 5G devices, inflation-defying price decreases, and the rapid rise of fixed wireless as a viable home broadband alternative.

Specific findings from the survey include the following:

In 2021 alone, U.S. wireless carriers spent almost $35 billion "to grow, improve and run their networks." As the following chart illustrates, that record-breaking total represents the fourth straight year of increased annual investment.

Thanks to efforts by the FCC and the states to streamline siting regulations, 69,543 cell sites – 62 percent of the post-2016 total – were constructed in the two years between 2019 and 2021.

5G service today is available to 315 million Americans. And consumers are adopting this mobile broadband technology at a brisk pace: the total number of deployed 5G-capable devices grew by over 500 percent during just the past year. Consequently, one in three adults now have a 5G-capable smartphone or other device.

While consumer prices overall have increased by 94 percent thanks to "historic" levels of inflation, prices for unlimited data plans have fallen by nearly half since 2010.

5G fixed wireless quickly has emerged as a viable competitive alternative for home broadband service: over 40 million households already have access to this option.

Highlights from CTIA's 2022 Annual Survey are available here.

More Indicators of a Bright Future for Fixed Wireless Access Services

My April 25 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice" highlighted the potential for 5G-enabled fixed wireless access (FWA) services to fast and affordable bring broadband connectivity to several million Americans in rural and small markets within the next few years. The Perspectives observed strong first quarter 2022 FWA subscriber additions for Verizon as confirming evidence of that potential. And my April 30 blog post spotlighted strong quarterly results in FWA service subscriber additions for T-Mobile.

And there are other news items regarding 5G-enabled FWA's outlook. According to one report, at the end of the first quarter of 2022, Verizon and T-Mobile combined have over 1.4 million subscribers to their FWA services. Moreover, on April 28, Telecompetitor reported that UScellular's Home Internet+ fixed wireless is now offered in 10 markets. It is reported that UScellular has an average of 400 MHz of spectrum in those markets. Plus, UScellular has plans to expand to "dozens" of new markets in 2022. Additionally, the Chairman of DISH Network reportedly stated that there is potential for DISH to make competitive entry in the FWA services market to reach rural America. 

For more on FWA services as an important technology platform for helping to close the digital divide and connect all Americans, check out my Perspectives.   

T-Mobile Reports First Quarter Surge in Fixed Wireless Access Subscribers

On April 27, T-Mobile reported that it gained 338,000 fixed wireless access (FWA) subscribers during the first quarter of 2022. T-Mobile ended the quarter with 984,000 FWA subscribers, and it reportedly has plans to gain as many as 7-8 million total FWA subscribers by 2025. 

This strong quarterly growth in T-Mobile's FWA subscribership was anticipated in my April 25 Perspectives from FSF Scholars, "Fixed Wireless Access is Boosting Rural Broadband and Consumer Choice." That Perspectives focused on the tremendous potential for 5G-enabled FWA services to connect several million Americans in rural and small markets within the next few years. And FWA also could enhance competition in more populous local markets that already are served by fiber and cable broadband providers. 

 

As revealed by first quarter gains in fixed wireless subscribers by T-Mobile – and also by Verizon, 2022 is shaping up to be a big year for FWA. For more on the future of 5G-enabled FWA and policy priorities for ensuring that fixed wireless timely achieves its full potential to connect Americans to broadband, see my Perspectives. Free State Foundation Legal Fellow Andrew Magloughlin and I also touch on the competitive outlook and consumer benefits of FWA in our Perspectives, "The Broadband Internet Services Market in January 2022: 5G, Cable, Fixed Wireless, Wi-Fi 6, and Fiber are Benefitting Consumers."

FCC Rule Removing Barriers to Fixed Wireless Broadband Deployments Upheld

On Friday, in Children's Health Defense v. FCC, the D.C. Circuit upheld the FCC's 2021 OTARD Order that expanded the scope of its rule preempting restrictions on broadband Internet rooftop antennas to include all "hub and relay" antennas. Free from such unreasonable deployment barriers, fixed wireless broadband providers are better able to compete against other distribution technologies and serve the needs of consumers.

For background, the Telecommunications Act of 1996 directed the Commission to adopt rules that promote intermodal competition in the video market by preempting state, local, and covenant-based restrictions on the installation of rooftop antennas. Congress mandated this rulemaking because states, localities, multitenant building owners, and home owners' associations often banned rooftop antennas needed for "wireless cable" and satellite TV services, or at minimum saddled them with unreasonably burdensome compliance costs and other obligations.




In response, the Commission adopted its "over-the-air reception device" (OTARD) rule, which preempts regulations that "unreasonably delay or prevent installation" or "unreasonably increase the cost" of rooftop antennas smaller than 1 meter in diameter and no higher than 12 feet above the roofline. In subsequent years, the Commission has updated the OTARD rule multiple times, including expanding the scope of the rule to cover rooftop antennas used for fixed wireless broadband service.

The 2021 OTARD Order is the latest of these updates, revising the OTARD rule to conform with current technical realities of fixed wireless broadband offerings, many of which involve "mesh" networks that rely upon a greater number of smaller antennas. Pursuant to the Order, the OTARD rule now preempts regulation of all "hub" rooftop antennas used for fixed wireless broadband service that fall within the rule's dimension limits. Prior to this Order, the OTARD rule only protected hub antennas used to serve the specific location to which they were attached.

Consumers stand to benefit from the 2021 OTARD Order because it enables fixed wireless providers to deploy the equipment needed to improve and expand network performance.

The D.C. Circuit upheld the 2021 OTARD Order against multiple attacks from petitioners. First, the court rejected petitioners' claim that the FCC lacked authority to expand the OTARD rule, holding that the text of Section 303 of the Communications Act and the Commission's interpretation of this section provided authority and a reasoned basis for its Order. According to the Court, Section 303 grants the Commission authority to regulate radio "stations," which the Commission has interpreted to mean individual antennas using radiofrequency (RF) spectrum. The Order is a lawful use of this authority.

Next, the court rejected petitioners' Administrative Procedures Act challenge that the Commission failed to consider health effects from RF exposure, concluding that this issue was outside the scope of the Order and best addressed in the Commission's RF proceedings. The court reasoned that federal agencies can designate specific proceedings to address specific issues, as the Commission had done in a 2019 rulemaking on RF exposure.

The court also rejected petitioners claim that the Order facially violates the Americans with Disabilities Act (ADA) and Fair Housing Act (FHA), determining that petitioners failed to show that the Order is unlawful in every application and because their arguments again relied on the supposed health effects of RF exposure. A facial challenge to an agency order requires that the order be invalid in every instance, and since the petitioners' claims here involved specific individuals protected by the ADA and FHA, they could not meet this burden. Further, even if petitioners could meet that burden, the claims involved assertions about the health effects of RF exposure that the Commission addressed in a separate proceeding.

Lastly, the court rejected petitioners' claim that the Commission unlawfully preempted state and local law, holding that Section 303 empowers it to do so.

However, the court noted in dicta that the Commission is "treading on thin ice" by preempting state and local statutes mandating community notice prior to the construction of commercial grade antennas, pointing out that such preemption may implicate the First Amendment. But because petitioners in this case relied on a facial challenge to the 2021 OTARD Order, the court did not rule on this narrower preemption issue.

Free State Foundation scholars are pleased to see the D.C. Circuit uphold a sound policy that fosters intermodal broadband competition by removing unreasonable barriers to the deployment of fixed wireless broadband equipment. Director of Policy Studies Seth Cooper wrote FSF Blog posts supporting the 2021 OTARD Order and proceeding. We hope to see more infrastructure reforms that remove broadband deployment barriers.

T-Mobile's Fixed Wireless Growth Boosts Broadband Competition

Last week, I blogged about Verizon's strong quarterly performance adding fixed wireless subscribers, and this week T-Mobile is joining the party. Fierce Telecom's Diana Goovaerts reports that T-Mobile added 224,000 fixed wireless subscribers in Q4 2021. That's even more additions than Verizon posted, and it brings T-Mobile's total fixed wireless subscribes to 646,000, exceeding its year-end goal of 500,000.

T-Mobile's C-Suite office noted that the largest portion of its fixed wireless additions are former cable and fiber customers, showing that, so far, fixed wireless is best poised to compete in areas already served by at least one provider. This could change as fixed wireless providers get access to more mid-band spectrum like C-Band, 3.45-3.55 GHz, 2.5 GHz, or other mid-band frequencies auctioned in the future. These bands have the propagation characteristics required for better service quality in presently unserved rural areas.

Credit: James T. M. Towill

In any event, more fixed wireless offerings will still add competition in broadband markets. T-Mobile's C-Suite also claimed that price appears to be its main competitive advantage. Fixed wireless services, so far, offer service quality that is inferior but comparable enough to cable and fiber for a handful of price-sensitive customers to switch.

Market-based competition on price is always welcome.

Fixed Wireless Subscriber Growth Boosts Broadband Competition

Verizon posted strong subscriber growth for its fixed wireless services in Q4 2021, showing the increasing competitiveness of fixed wireless offerings in the home broadband market. This growth also shows the potential for fixed wireless providers to reach rural and other unserved areas as they deploy more mid-band spectrum.

Light Reading Senior Editor Jeff Baumgartner reports that Verizon added 78,000 fixed wireless subscribers last quarter, beating both expectations as well as its previous record quarterly increase of 55,000 (Q3 2021), and bringing its total fixed wireless subscribers to 228,000. Verizon also added more fixed wireless subscribers last quarter than it added in FiOS subscribers (51,000).

Credit: James T. M. Towill

Notably, Verizon CEO Hans Vestberg said new fixed wireless subscribers are generally new Verizon customers and come from areas served by cable and DSL providers. This is direct evidence of fixed wireless competing for home broadband subscriptions in served markets, even if it is so far at a small scale. Broadband customers benefit from this boost to market-based competition.

Free State Foundation Director of Policy Studies Seth Cooper recently highlighted an Accenture report about the potential for fixed wireless to boost competition, availability, and service quality in rural America. That report recommended clearing more mid-band spectrum in the 3 GHz range to make high speed rural fixed wireless a widespread reality. We will be looking to see if Verizon's and other fixed wireless services make a significant play for subscribers in rural and other unserved areas as the company begins deploying C-Band spectrum and other mid-band frequencies awarded in future auctions.

Growing Mobile App Economy Depends on Healthy Broadband Infrastructure Market

For a roundup of mobile app consumer trends among different countries, look no further than App Annie Research's "State of Mobile in 2022" report. Among other things, the report observes continuing increases in the amount of time consumers spend using on their mobile devices. The global average climbed to 4.8 hours per day, and the U.S. average rose to about 4.5 hours per day. The report ranks the most popular apps for games, news, ridesharing and travel, shopping, social media and more. And it highlights the lucrative market for mobile advertising.

Although the "State of Mobile in 2022" report focuses on app content and consumer preferences, the heavy-volume use of streaming mobile apps and mobile downloads depends on a pro-investment and pro-innovation environment for fixed and mobile broadband network facilities that can supply ever-growing demands. As Free State Foundation scholars have explained, such an environment can be secured by making more spectrum available for commercial services, removing regulatory cost barriers to fiber deployment (because mobile traffic also relies heavily on wireline networks), and avoiding regulatory obstacles to 3G to 5G transitions. 

D.C. Circuit Decision Clears the Way for a Wave of Wi-Fi 6E Devices

As Free State Foundation Director of Policies Studies and Senior Fellow Seth Cooper explained in his post to this blog yesterday, the FCC's just-released Eleventh Measuring Broadband America Fixed Broadband Report confirms that high-speed Internet access speeds continue to rise dramatically.

As they do, the Wi-Fi networks that consumers rely upon to connect their devices to broadband service likewise must evolve, lest they serve as a bottleneck. Wi-Fi 6, the latest iteration of the ubiquitous wireless networking standard, can deliver that crucial complementary capacity – but requires large swaths of relatively unencumbered spectrum to do so.

In 2020, the FCC delivered, opening up the 6 GHz band to flexible unlicensed use. On the heels of a D.C. Circuit decision largely affirming the Commission's bold action, both consumer electronics manufacturers and Internet service providers (ISPs) are making available "Wi-Fi 6E" devices able to make full use of the increased speeds made possible by 5G, cable 10G, fiber, and other next-generation broadband distribution technologies.

As I explained in "Wi-Fi 6E Can Modernize Unlicensed Wireless," a February 2020 Perspectives from FSF Scholars, the "Wi-Fi 6E" label distinguishes Wi-Fi 6 devices able to operate in the 6 GHz band from those relegated to the relatively congested 2.4 GHz and 5 GHz bands.

Why is that distinction so important? The contiguous 1200 MHz of spectrum the FCC made available in the 6 GHz band makes possible the wider (160 MHz) channels required to maximize the full potential of the Wi-Fi 6 technical specification.

On December 28, 2021, the D.C. Circuit largely rejected challenges to the FCC's 6 GHz Order. For additional information, please see Free State Foundation Legal Fellow Andrew Magloughlin's post to the FSF Blog summarizing the court's decision in AT&T Services, Inc. v. FCC.

In a press release, Free State Foundation President Randolph May applauded the D.C. Circuit's recognition of "the considerable degree of deference to be accorded the FCC regarding technical spectrum management matters" and, in particular, its appreciation of the technical implications of the agency's "harmful interference" standard.

In that decision's wake, Wi-Fi 6E devices are proliferating.

The 2022 Consumer Electronics Show is underway, and companies including Netgear and TP-Link have utilized that high-profile platform to unveil new Wi-Fi 6E devices. Netgear's Nighthawk WiFi 6E Router provides speeds up to 10.8 gigabits per second (Gbps) and the low latency (lag) that hard-core gamers, among others, crave.

Meanwhile, TP-Link's Archer AXE200 Omni AXE11000 Tri-Band Wi-Fi 6E Router utilizes mechanically rotating robotic antennas to deliver speeds up to 11Gbps:

Source: TP-Link's website.

In addition, ISPs are beginning to roll out Wi-Fi 6E-compatible routers directly to their subscribers. On January 3, 2022, Comcast announced that the new version of its xFi Advanced Gateway supports Wi-Fi 6E – and thus is the "first to support the speeds of the future – symmetrical Gigabit speeds" that the cable 10G platform promises to deliver.

In December 2021, Verizon also revealed a new router able to operate in the 6 GHz band. Notably, while the device is compatible with both its FiOS fiber-based offering and Verizon 5G Home Internet service, the company is providing it to subscribers of the latter first.

Delivering average download speeds that average 300 Mbps and peak at 940 Mbps, Verizon's robust fixed wireless broadband offering leaves no doubt that fixed 5G is a viable alternative to traditional home Internet service options. And Verizon's decision to prioritize the deployment of its Wi-Fi 6E router to its fixed 5G customers underscores the extent to which these two wireless distribution technologies complement one another.

Accenture Reports on the Potential for 5G Fixed Wireless Access in Rural America

A report released on November 18 by Accenture titled "5G Fixed Wireless Broadband: Helping Close the Digital Divide in Rural America." The report identifies the potential of next-generation fixed wireless services to provide capacious and high-speed broadband Internet services in hard-to-reach geographical areas. According to the report: "By leveraging advances in wireless network technologies like 5G, an FWA connection can potentially deliver sustained download speeds, through the air, of 1 Gbps up to four miles." Also, “[a]s advanced 5G technology rolls out with high-band spectrum, FWA will have 10 to 100 times more capacity than 4G" and "future 5G-enabled FWA services will provide ultra-reliable service with under 10 millisecond latencies that are critical to many emerging 5G use cases." Accenture estimates that 8.4 million households – that is, 43% of rural households – could be served by at least one 5G fixed wireless access provider in the near-term future. 

To obtain the benefits of fast 5G deployment, Accenture's report recommends more mid-band spectrum in the lower 3 GHz band be repurposed for commercial use. And it recommends additional streamlining of regulatory processes such as zoning for infrastructure permit approvals. Those are sound recommendations that Congress and the FCC ought to take seriously if they are truly serious about reaching underserved Americans. 

For further insights on policy actions needed to expand broadband access to all Americans, see my Perspectives from FSF Scholars from February of this year titled "Fast Action on the Lower 3 GHz Band Will Secure Americas 5G Future." And also check out "Real Infrastructure Opportunity for Congress: Speed Deployment of 5G Network," a Perspectives that I co-authored by Free State Foundation President Randolph May.
 

Sunny Forecast for 5G Fixed Wireless Broadband Access in the U.S.

According to a November 10 report by ABI Research, "in 2026, the FWA [Fixed Wireless Access] market will exceed 180 million subscriptions and generate US$70 billion in revenue." It forecasts quick 5G FWA rollouts in North America because it can be deployed faster to subscribers and for less capital expenditures compared to fiber-to-the-home. Thus: "In 2026, North American and Europe combined will represent nearly 60% of global 5G FWA subscriptions." While these figures aren't specific to the United States, one ought to expect this country to be the leader in 5G FWA deployment. And the press release for ABI's report acknowledges that Verizon is an early adopter of 5G FWA using mmWave band spectrum, with U.S. Cellular also planning to deploy in the mmWave band. 

The future of 5G FWA looks bright in the U.S. with T-Mobile and AT&T both making offerings available. And an October 26 blog post by Free State Foundation Legal Fellow Andrew Magloughlin highlighted the Verizon-Amazon deal for rural backhaul that will deliver Verizon's fixed wireless service. In the months ahead, expect FSF scholars to have more to say on 5G FWA and its implications for competition policy. 

Verizon-Amazon Backhaul Deal Could Boost Intermodal Broadband Competition

In the latest example of dynamic intermodal ISP competition, Amazon announced this week that, once the satellite network launches, its Project Kuiper satellites will provide backhaul to Verizon’s fixed and mobile wireless networks in rural areas. This news is another sign of the existence of effective competition among ISPs and the growing irrelevance of distinguishing, for regulatory purposes, among various intermodal transmission platforms.

Project Kuiper is Amazon’s $10 billion low Earth orbit (LEO) satellite network that will offer high-speed broadband with a focus on rural and remote areas. The FCC approved Amazon to operate 3,236 satellites in July 2020. While these satellites are not yet deployed, Amazon is making progress towards launch. Project Kuiper likely will be the second large LEO constellation providing broadband—SpaceX’s Starlink already has launched over 1,700 satellites in LEO and is running a beta program for 100,000 broadband customers.

Credit: James T. M. Towill

While LEO satellite broadband offerings could sport innovations of their own, such as faster airline Wi-Fi and service in remote areas like oceans, I want to focus on what the Verizon-Amazon deal means for the overall marketplace. ISPs compete vigorously in most places for customers. The FCC’s 2020 Communications Marketplace Report demonstrated the extent of this competition, showing improvements with respect to both speeds and choice among providers. Free State Foundation scholars stressed the strong evidence of intermodal competition between transmission methods in comments submitted in this proceeding. While the FCC hasn’t yet adopted this view regarding the extent of the existence of intermodal competition, the Verizon-Amazon deal is further proof that intermodal competition is reality.

We discussed the emerging potential of fixed wireless as an intermodal competitor back in 2017. That potential is now reality. There are 6.9 million fixed wireless customers as of 2020, up from 4 million in 2016. Fixed wireless service is now available to 45% of US customers. Verizon alone has 150,000 fixed wireless customers after gaining a 55,000 subscribers in Q3 2021, an enormous 58% quarterly increase. T-Mobile, also seeing opportunity in fixed wireless, announced a price cut for its plans earlier this month. And the Verizon-Amazon deal for rural backhaul will ensure Verizon’s fixed wireless service is faster, more reliable, and available in more areas.

Senior Fellow Seth Cooper previously noted the importance of LEO satellites to future broadband competition in 2018 before the FCC approved any LEO satellite constellations. In that blog, Seth focused mostly on how satellite ISPs would compete for customers. The Verizon-Amazon deal is an example of just how dynamic broadband competition can be. While Project Kuiper and other satellite ISPs will certainly compete for their own customers, their provision of backhaul services will improve competitiveness for other transmission modes as well.

That the Verizon-Amazon deal improves Verizon’s offerings is an important point, because it shows how ISPs of various sorts can cooperate to form competitive offerings. Amazon, as a new market entrant, will face steep customer acquisition costs. These acquisition costs include marketing and sales investments to make customers aware of Project Kuiper's broadband offerings and convince them that they’re the right option. Verizon, as an established ISP, has a strong advantage in this area because it’s made these investments, has past success, and has a recognizable brand.

But Verizon needs additional, expensive-to-build backhaul capacity for its networks in rural areas. Amazon has already made capacity investments by manufacturing its satellite constellation. Given these facts, the companies teamed up according to comparative advantage. So Amazon provides backhaul to a customer of one—Verizon—in exchange for revenues Amazon can later invest in building out its customer acquisition strategy. And as a result, new customers get access to Verizon services, existing customers get better Verizon service, and Project Kuiper moves closer to viability.

Market entry by LEO constellations and cooperation among ISPs to create new competitive offerings are what Free State Foundation scholars mean when we say dynamic, intermodal competition is here. The deal between Amazon’s Project Kuiper and Verizon appears to be welcome news for broadband customers. The FCC should take note.