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. 

MT with Mike O'Rielly – Ep 11: Wireless Broadband & BEAD

Episode 11 of "TMT with Mike O'Rielly," a videocast featuring former FCC Commissioner and Adjunct Senior Fellow at the Free State Foundation Michael O'Rielly, was released on September 26. In the episode, titled "WISPs' Wireless Broadband Offerings & BEAD Funding," Mr. O'Rielly is joined by guest David Zumwalt, President and CEO of WISPA – The Association for Broadband Without Boundaries. The conversation touches on matters such as spectrum, concerns about the Biden Administration’s favoritism for fiber in implementing the Broadband Equity, Access and Deployment (BEAD) Program and the subsequent change to that policy, concerns about federal subsidies being used to overbuild in areas already being served by small wireless providers, and more. 

Report IDs Key Stats on Wireless Infrastructure, But Regulatory Threat Looms

On April 16, the Wireless Industry Association (WIA) released its report, "Wireless Infrastructure By The Numbers: 2023 Key Industry Statistics." As the title indicates, WIA's report provides a high-level look at the overall number of cell towers, macro sites, and small cell facilities that mobile service providers use to offer mobile broadband Internet access services. According to WIA's report, as of 2023, there were 153,400 cellular towers in operation in the U.S., in addition to nearly 245,000 macrocell sites and 202,100 outdoor small cells in operation. The report found that there also were nearly 776,000 indoor small cell nodes in use as of last year. These figures surely have grown since 2023.  

Moreover, WIA's report found that "[t]he U.S. cellular industry spent $11.6 billion building additional capacity and coverage into the nation’s wireless networks in 2023." Another interesting observation in the report is that "[m]ore towers and cell sites are being deployed but the amount spent building networks is flat" because "[a]s wireless network technologies mature and evolve, network equipment becomes more efficient and cost effective." Also, "[t]he amount spent on maintaining and operating the cellular networks increased but build spending dropped" due to larger networks increasing the necessary maintenance costs.

 

The deployment and operation of 4G LTE and 5G wireless networks depends on private market investment remaining strong. Subjecting mobile broadband networks to public utility regulation – as the FCC proposes in its Draft Order to be considered for a vote at the agency’s April 25 meeting – would undermine the ability of wireless infrastructure owners and operators to use their property and generate returns. This would reduce incentives to build and upgrade such infrastructure. The 2018 Restoring Internet Freedom Order found that the imposition of public utility regulation under the now-repealed 2015 Title II Order inhibited investment: 

The Commission has long recognized that regulatory burdens and uncertainty, such as those inherent in Title II, can deter investment by regulated entities and, until the Title II Order, its regulatory framework for cable, wireline, and wireless broadband Internet access services reflected that reality. This concern is well-documented in the economics literature on regulatory theory, and the record also supports the theory that the regulation imposed by Title II will negatively impact investment. The balance of the evidence in the record suggests that Title II classification has reduced ISP investment in broadband networks, as well as hampered innovation, because of regulatory uncertainty. The record also demonstrates that small ISPs, many of which serve rural consumers, have been particularly harmed by Title II. And there is no convincing evidence of increased investment in the edge that would compensate for the reduction in network investment.  

Imposing restrictions on 5G network slicing – either by outright prohibitions or by regulatory uncertainty under the vague "general conduct" standard contained in the Draft Order – also would be detrimental to wireless innovation and investment, including investment in the physical infrastructure that supports 5G uses. For more on this topic, see Free State President Randolph May's and Senior Fellow Andrew Long's April 2 Perspectives from FSF Scholars, "The 'Network Slicing' Debate Exposes How Title II Will Kill Innovation." Also, check out FSF President May's FSF Blog post from April 18: "Don't."

Cable Wireless MVNOs Set for Further Growth in 2024

Cable wireless mobile virtual network operators (MVNOs) are important component of the effectively competitive wireless communications market. The two largest cable MVNO services – Comcast's Xfinity Mobile and Charter's Spectrum Mobile – have been in operation only a handful of years. Although their subscribership is far below the three major mobile wireless providers T-Mobile, Verizon, and AT&T, cable MVNOs have made modest but steady gains ever since they entered into the wireless market. According to recent reports, Xfinity Mobile finished 2023 with 6.58 million subscribers and Spectrum Mobile finished with 7.8 million.  

There remains plenty of room for growth in 2024, as cable MVNOs continue to explore using their own licensed CBRS spectrum to carry mobile wireless traffic and reduce reliance on leased spectrum. According to an article published on January 10 of this year in LightReading, Cox Mobile also is looking to expand its wireless offerings in 2024, and it is now conducting tests on licensed CBRS spectrum for fixed wireless access (FWA) applications. As noted in a February 2023 article in FierceWireless, Cox paid $200 million for CBRS spectrum licensees auctioned by the FCC. Cox Communications is not publicly traded and doesn't publish subscriber numbers. 

White Paper Examines the Prospects for Mid-Band Spectrum

On March 23, 5G Americas released a white paper titled "Mid-Band Spectrum Update." The white paper describes existing spectrum use as well future opportunities for spectrum use in the mid-band (1 GHz to 7 GHz) and "extended mid-band" (8.5-16 GHz) ranges. 

In previously published Perspectives from FSF Scholars papers and blog posts, Free State Foundation scholars have observed: (1) spectrum in the mid-band range is a necessary input for optimizing 5G networks and supplying surging demand for wireless data; and (2) there is a shortfall in mid-band spectrum availability. Right now, the federal government is the primary user or occupier of mid-band spectrum. Repurposing significant portions of that underutilized spectrum for private licensed commercial use is therefore a top-level priority. The 5G Americas white paper helpfully offers a description of the potential opportunities as well as challenges for repurposing different swaths of spectrum within the mid-band and extended mid-band ranges. 

The white paper observes that "[t]here are currently no bands in the spectrum pipeline in the U.S." Rightly, the white paper calls on the FCC and NTIA to create a new spectrum pipeline that prioritizes availability of lower range frequencies in the mid-band range of 3 to 8 GHz. The increasing urgency in identifying and repurposing spectrum for private commercial use also was a key topic of conversation at FSF's Fifteenth Annual Policy Conference, which was held on Tuesday, March 28th in Washington, D.C. In the weeks ahead, expect to hear more about what went down at #FSFConf15 and the need for a plentifully stocked spectrum pipeline to fuel 5G deployment in the U.S.   

DISH Network Reports Progress on its Nationwide 5G Buildout

On July 14, DISH Network submitted to the FCC its "5G Buildout Status Report." The report summarizes DISH's progress in building out its 5G network capabilities and offerings as part of its plan to become a nationwide wireless provider. 

Pursuant to the T-Mobile/Sprint merger and legal settlement, DISH acquired Sprint's Boost Mobile brand as well as spectrum licenses, along with buildout obligations. DISH is operating Boost as a mobile virtual network operator (MVNO) and simultaneously deploying a standalone 5G network. A 2020 FCC order requires DISH to follow through on commitments it made to offer 5G broadband services to at least 20% of the U.S. population and deploy a core network for its spectrum licenses in certain bands. 

According to DISH's 5G Buildout Status Report:

DISH is pleased to certify that, as of June 14, 2022, we offer 5G Broadband Service to 72,769,696 people in the United States. This coverage equals approximately 22 percent of the total U.S. population according to the 2020 U.S. Census with respect to DISH’s AWS-4 and AWS H Block licenses; DISH covers more than 25 percent of the population in those markets where DISH holds a Lower 700 MHz E Block license. (Emphasis in the original.)

According to DISH, its 5G service offerings became available to more than 120 cities by June 14, 2022. Its service interconnects with third party networks for 4G and 5G data roaming when out of DISH's footprint. 

Given all the unforeseen obstacles DISH has faced stemming from government-imposed lockdowns, labor shortages, microchip shortages, and supply chain problems, DISH's apparent progress is commendable. And DISH's ongoing efforts to deploy a nationwide standalone 5G network are another indicator of the competitive state of the broadband marketplace. For more on the competitiveness of the broadband services market, check out the comments that the Free State Foundation filed in July for the FCC's 2022 Communications Marketplace Report proceeding. 

Misleading Evidence in Private Antitrust Suit Against T-Mobile/Sprint Merger

Dale v. Deutsche Telekom AG, a recent class action antitrust lawsuit filed in the Northern District of Illinois, alleges that the T-Mobile/Sprint merger harmed consumers by causing price increases. The Dale complaint largely rehashes arguments brought by state attorneys general that Judge Victor Marrero rejected back in 2020, but it also hangs its hat on new misleading evidence: the claim that the Consumer Price Index's "quality-controlled prices" for wireless telephone services have increased since the consummation of the merger.

The problem with that argument is that the CPI's "quality-controlled prices" do not control for quality improvements brought by 5G service.

Currently, the CPI records changes in wireless telephone plans from 4G networks to 5G networks, but does not quality adjust for these changes. The CPI continues to observe the changes in customer access of 5G networks to determine if quality differences can be quantified.

So, the tiny price increases that the CPI measured in late 2020 do not account for the increased quality brought by 5G service. That's a serious problem for the plaintiffs in Dale, because one of the reasons Judge Marrero approved the T-Mobile/Sprint merger was that he found it likely to expedite the rollout of 5G service. To that point, he seems vindicated, as OpenSignal's periodic "5G Report" repeatedly has found that T-Mobile's 5G network is delivering on its commitments and has improved on its past performance levels. So, if the CPI actually adjusted for improved quality from 5G service, it might not show price increases at all.

As a matter of antitrust law, it would be strange to find that the company with the highest-performing and continually improving network is suppressing competition. And as a reminder, antitrust law does not prevent businesses from increasing prices for improved service.

Also, since a brief small spike in late 2020, wireless prices have resumed their downward trend, and are nearing their all-time low on the CPI. Likewise, wireless telephone services are one of the only goods or services measured by the CPI currently decreasing in nominal price despite 40-year-high inflation. As I wrote in May, wireless telephone prices decreased by .7% between April 2021 and April 2022. Inflation during that period was 8.3%, so during the same time, real wireless prices decreased by 9%.

Evidence of improved 5G service quality, recent wireless price decreases, and additional evidence of increasing broadband competition – all of which Free State Foundation scholars included in their 2022 Communications Marketplace Report comments – will be hard for the Dale plaintiffs to overcome.

Study Predicts Near Doubling of Wireless IoT Market by 2026

A new study from Juniper Research makes noteworthy projections about the future of 5G in the American economy. The study, titled Cellular IoT: Strategies, Opportunities & Market Forecasts 2022-2026, predicts that the wireless Internet of Things (IoT) market will nearly double in revenue by 2026. Juniper Research predicts that low power wide area (LPWA) connections will comprise most of the IoT market growth, with strong growth also coming from 5G connections.

The study finds that "the global value of the cellular IoT market will reach $61 billion by 2026; rising from $31 billion in 2022." This is a 95% value increase. That growth will come from two main areas: 5G and LPWA.

A remote sensor

Juniper projects that 5G revenues will total roughly $9 billion in 2026, a strong 1000% growth from the roughly $800 million in 2021. Juniper noted "network slicing and edge computing" as important services for boosting 5G revenue growth during this period.

Juniper also projects that LPWA connections will grow 1200% by 2026, fueled by low costs for connectivity and hardware. LPWA adoption accounts for a larger portion of Juniper's predicted IoT market growth than 5G. LPWA networks typically involve low-bandwidth devices connected to low-power LTE. The advantage of LPWA networks is strong coverage over a geographic area, including penetration of building walls, for low-bandwidth uses. An example of a LPWA use case is a network of remote monitoring sensors, often useful for industries such as agriculture and manufacturing.

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.

Latest Wireless Industry Survey Reveals Continued Growth in Investment, 5G Deployments, and More

The 2021 annual survey of the wireless industry conducted by CTIA details steadily increasing investment, rapidly expanding 5G deployments, and a robust response to the spike in demand driven by COVID-19.

Released by CTIA on July 27, 2021, the 2021 Annual Survey Highlights present a compelling portrayal of progress and performance during a year over which the pandemic cast a heavy shadow.

A few highlights:

• Private investment in mobile networks increased for the third consecutive year, reaching a five-year high of $30 billion. Capital expenditures to date exceed $600 billion.
• 5G networks were deployed at a pace exceeding that achieved by 4G networks and in 2020 covered 300 million Americans, compared to only 200 million twelve months prior. First launched in 2019, 5G already is available to 90 percent of the country.
• In the last two years, mobile carriers constructed nearly 68,000 new cell sites, an achievement facilitated by wireless infrastructure reforms implemented by the FCC.
• Total mobile data consumption exceeded 42 trillion megabytes in 2020, an increase of more than 200 percent since 2016. Over the past decade, mobile data traffic has grown by a factor of 108.

Proposed Legislation Would Incorporate Price Tags, and Economic Rigor, into Government Spectrum Discussions

Spectrum is in increasingly short supply. Especially mid-band spectrum. My fellow Free State Foundation scholars and I have highlighted wireless industry reports indicating that, absent additional spectrum clearing, the United States is at risk of falling behind other nations in making more available, in particular for 5G. The most likely source? Frequencies currently allocated to government agencies.

Legislation introduced by Senator Mike Lee (R-UT) would facilitate difficult discussions regarding whether government spectrum is being put to its best and highest use by directing NTIA to determine its real-world monetary value. That, in turn, would infuse the process with greater transparency and data-driven analysis.

The federal government, led by the Department of Defense, has exclusive or primary use of the majority of spectrum between 225 MHz and 3.7 GHz. In 2012, the President's Council of Advisors on Science and Technology (PCAST) found that "nearly 60% of … beachfront frequencies are predominantly allocated to Federal uses, a statistic that illustrates the importance of finding more effective mechanisms to share Federal spectrum."

Sen. Lee's bill, the Government Spectrum Valuation Act (S. 1626), champions a market-oriented approach. By directing NTIA to assign dollar values to government-held spectrum, it would enable quantitative comparisons between private and public allocations. In addition, by including those amounts within agencies' budgets, it would provide them with economic incentives to relinquish underutilized capacity in order to secure funding for higher priority initiatives.

In the commercial realm, market forces reveal the value of spectrum. Commission-led auctions, such as the one scheduled to take place this December for 280 MHz of high-value mid-band spectrum in the C-Band, afford interested parties the opportunity to bid competitively on scarce resources. The highest bidders prevail, and the dollar amounts they agree to contribute to the Treasury establish what the spectrum is worth.

But that is not the case with government spectrum, which in many cases was allocated years ago and under vastly different – and much less efficient – technological circumstances. As Visiting Scholar Gregory J. Vogt explained in a recent Perspectives from FSF Scholars, "Coordinated Government Decisionmaking on Spectrum Issues: It's Vital to Locating More Spectrum for 5G Use":

There is a significant "opportunity cost" associated with government spectrum, which is defined as the loss of potential benefits when a suboptimal alternative is chosen over one that would generate higher consumer welfare. In May 2015, Coleman Bazelon and Guilia McHenry estimated the economic value of 645.5 MHz of licensed spectrum in the hands of government users was $455 billion. If this spectrum was auctioned off to commercial users, it would generate about $1.7 trillion in 2015 dollars in economic activity.

Indeed, as Sen. Lee noted when he introduced the Government Spectrum Valuation Act, "because federal agencies pay such a minimal fee to NTIA for their allocations – absent of a market-based allocation – they have little incentive to share spectrum or make it available for commercial use."

Nor are policymakers able to make objective, apples-to-apples comparisons between commercial and government allocations. They might have imperfect information as to what that spectrum would fetch on the open market, but the other side of the balance – its true and full value to government users – often is unknown.

(To be sure, government spectrum plays an important role, including in our national defense, that in certain instances cannot be made public. The legislation as proposed would allow NTIA to consider, and require it to keep confidential, "classified, law-enforcement sensitive, or proprietary information" relevant to the assigned dollar value.)

To address this, the Government Spectrum Valuation Act would require NTIA to work with the FCC and the Office of Management and Budget (OMB) to estimate the value of spectrum. Such valuations would be based "on the value that the electromagnetic spectrum would have if the spectrum were reallocated for the use with the highest potential value of licensed or unlicensed commercial wireless services that do not have access to that spectrum as of the date of the estimate."

It also would direct NTIA to "consider the spectrum needs of commercial interests while preserving the spectrum access necessary to satisfy mission requirements and operations of Federal entities."

The bill would establish the following schedule pursuant to which NTIA must complete its valuations:

• 3 KHz to 33 GHz: within 1 year and every 3 years thereafter
• 33 GHz to 66 GHz: within 2 years and every 3 years thereafter
• 66 GHz to 95 GHz: within 3 years and every 3 years thereafter

It is worth pointing out that FCC Commissioner Michael O'Rielly repeatedly has advocated for a similar approach, noting in 2018 that "requiring U.S. Government agencies to put a market price on their spectrum holdings will fix a budgetary anomaly and promote overall spectrum efficiency by incentivizing each agency to release unneeded spectrum."

Although Sen. Lee unveiled the Government Spectrum Valuation Act back in May 2019, it has been the recent subject of renewed focus. Representatives Cathy McMorris Rodgers (R-WA) and Yvette Clarke (D-NY) introduced companion legislation in the House on September 14, 2020. Two days later, the Senate Commerce Committee voted to approve Sen. Lee's version. That bill now is before the full Senate.

Then-NTIA Administrator David Redl stated in 2019 that, "[i]f we're being honest, the era of easy spectrum decisions is over." Passage of the Government Spectrum Valuation Act would facilitate that process by assigning specific dollar values to government spectrum, thereby enabling policymakers to make rational, informed decisions regarding its best and highest use.

Strong U.S. Wireless Investment in 2019 Enabled Solid Performance Amidst Lockdowns

Today, CTIA released its 2020 Annual Survey. The survey highlights show stunning growth in mobile wireless networks and performance in 2019, including $29.1B in U.S. capex in wireless networks, about 46,000 new cell sites built, over 20 million new U.S. wireless subscriptions for a total of 442.5 million subscriptions, and 37.1 trillion megabytes of wireless data consumption. Importantly, the tremendous investment by the U.S. wireless industry in 2019 helped ensure that mobile wireless networks successfully accommodated surging data and wireless traffic in early 2020 amidst the first several weeks of lockdowns. That accomplishment sets U.S. networks apart from other nations in which speeds declined when faced with rising traffic. Be sure to check out the wireless industry's 2020 Annual Survey Highlights at CTIA's website. 

Ookla Reports Speed Increases for U.S. Fixed and Mobile Broadband

On July 8, Ookla released its "Q2 2020 Speedtest® United States Market Report." According to Ookla:

[M]edian download speed over mobile in the U.S. increased 15.8% between Q2 2019 and Q2 2020 to 29.00 Mbps. The median upload speed for mobile was 5.74 Mbps, down 15.2% from Q2 2019. 

Median download speed over fixed broadband increased 19.6% during the last year to 86.04 Mbps in Q2 2020, and median upload speed increased 1.5% to 11.86 Mbps in Q2 2020.

In the wake of the COVID-19 outbreak and government lockdowns, these reported speed increases are welcome news. They also go to show the soundness of the FCC's pro-investment, pro-deployment, light-touch regulatory approach to broadband Internet access services.

Additionally, Ookla's report contains interesting comparative figures for fixed and wireless broadband Internet services according to speed and other metrics. This includes comparisons of 5G speeds and 5G device availability. 

NTIA Seeks Input on National 5G Security Strategy

As I noted in an April 6 blog post, President Trump signed into law the Secure 5G and Beyond Act of 2020 on March 23. That Act directs the Administration to develop a 5G security implementation plan within 6 months of its enactment.

The White House initiated that process with the same-day release of the "National Strategy to Secure 5G," a framework document organized around four lines of effort:

• Facilitating the private-sector led rollout of 5G;
• Defining core security principles in response to potential risks;
• Addressing risks to economic and national security interests; and
• Working with like-minded countries to develop and deploy secure and reliable standards and infrastructure.

Late last month, NTIA solicited public input on that implementation plan. Its request for comment, which is organized around the same four lines of effort noted above, presents a number of specific questions. For example:

• With respect to facilitating the domestic rollout out of 5G, how can the U.S. Government further motivate the commercial ecosystem (equipment and chip manufacturers, software developers, cloud providers, system integrators, network providers, etc.) to increase R&D and testing? What specific goals should it prioritize?
• In assessing risks and identifying core security principles, what factors should the U.S. Government consider in evaluating potential security gaps?
• In addressing risks to economic and national security, what opportunities does 5G deployment create for U.S. companies?
• In promoting the responsible global development of 5G, how can the U.S. Government best encourage the domestic private sector to participate in standards development?

Comments are due on or before June 18.

White House Releases "National Strategy to Secure 5G"

On Monday, March 23, President Trump signed into law the Secure 5G and Beyond Act of 2020. That legislation directs the Administration, within 180 days of enactment, to develop a plan that ensures the security of domestic 5G networks; provides allies with technical assistance as they work to harden their own 5G networks; and protects the competitiveness of U.S. companies, the privacy of consumers, and the integrity and impartiality of standards-setting bodies.

The same week, the White House initiated that process by releasing the "National Strategy to Secure 5G," a framework document that defines the following four lines of effort:

One: facilitating the private-sector led rollout of 5G in the United State by building upon the FCC's 5G Fast Plan and NTIA's National Spectrum Strategy.

Two: defining core security principles for 5G capabilities and infrastructure in response to potential risks, which may be economic or national security in nature. Core security principles include best practices in cybersecurity,  supply chain risk management, and public safety, and will be synchronized with other security principles, such as the "Prague Proposals."

Three: addressing risks associated with the worldwide development and deployment of 5G infrastructure by (a) ensuring supply chain security, and (b) by taking actions necessary to protect U.S. national security interests from 'high-risk' vendors (that is, those owned by, controlled by, or subject to the jurisdiction or direction of a foreign adversary that pose an undue or unacceptable risk) that build upon Executive Order 13873 (issued May 15, 2019).

Four: working with like-minded countries to promote (a) the responsible global development and deployment of 5G technology and security principles, (b) U.S. leadership in standards setting, and (c) the availability of secure and reliable equipment and services.

5G will drive forward the economy in the years ahead. Therefore it is encouraging to see Congress and the Administration take proactive steps to safeguard next-generation wireless infrastructure and ensure continued American technological leadership in this space.

T-Mobile Announces Closing of its 5G-Accelerating Merger with Sprint

Today, T-Mobile US announced the closing of its 5G-accelerating merger with Sprint. The New T-Mobile touts that, over the next 6 years, its network capacity will surge 14 times its current capacity, its average 5G speeds will be 15 times faster than its current LTE speeds, and its 5G network will cover 99% of the U.S. population. T-Mobile expects to make $40 billion in network investments over the next three years, and it plans to cover 90% of rural Americans with high-speed 5G services. 

In public comments and reply comments filed with the FCC and in other publications, including blogs, Free State Foundation scholars have described the pro-innovation, pro-investment, and ultimately pro-consumer benefits of the T-Mobile/Sprint merger. As we explained in those publications, the merger's closing will allow for a more rapid deployment of a nationwide 5G network that will pose a potent competitive challenge to AT&T and Verizon. More recently, T-Mobile's resounding victory in U.S. District Court over certain state attorney's general who challenged the merger on antitrust grounds was the subject of my Perspectives from FSF Scholars paper, "Court Affirms T-Mobile/Sprint Merger Will Speed 5G Deployment." 

Congratulations to T-Mobile on the closing of its merger and to its new CEO Mike Sievert. American consumers are now set for a big boost on 5G and a more innovative and competitive wireless market.

P.S. T-Mobile's 5G Fact Sheet for March 2020 can be found here.

Opensignal Report Shows Mobile Broadband is Ramping Up in Rural America

My Perspectives from FSF Scholars paper, "Resurgence in Broadband Deployment Vindicates FCC's Pro-Investment Policies," focused on data cited in the FCC's 2019 Section 706 report and the Commission's policy focus on closing the digital divide. To that end, encouraging broadband deployment progress in un-served and underserved rural areas is particularly important. In "Mobile Experience in Rural USA– An Operator Comparison," Opensignal's Francesco Rizzato assesses rural broadband availability by mobile broadband provider and according to different geographic and performance metrics. The March-to-June 2019 data cited in this Opensignal report provides another indicator that 4G mobile broadband (including service with 10 mbps/3 mbps speeds) is continuing to be reasonably and timely deployed to all Americans. 

For more, check out Opensignal's report.

The Commission can continue to encourage investment in broadband infrastructure to rural areas by following through on policy initiatives identified in that Perspectivespaper. Additionally, the Commission ought to clarify the law regarding collocations and modifications to existing cell sites. For more on that, see my Perspectives paper, published today, titled "FCC Should Clear Legal Obstacles to Wireless Infrastructure Upgrades."

Reallocating Mid-Band Spectrum Will Create Significant Economic Benefits

On February 5, 2019, the Analysis Group published a study in conjunction with CTIA titled "The Economic Impacts of Reallocating Mid-Band Spectrum to 5G in the United States." The use of mid-band spectrum is a necessity for developing 5G networks capable of maintaining high speeds and low latency. The study examines the economic impact of reallocating 400 MHz of licensed mid-band spectrum between 3.45 GHz and 4.2 GHz. Over a seven-year buildout period, wireless providers will invest $154 billion in 5G infrastructure, resulting in $274 billion in additional economic activity and 1.3 million new jobs.

Charter's New Wireless Service "Spectrum Mobile" Increases Competition

Last month, Charter Communications launched a new mobile wireless broadband service, Spectrum Mobile. Spectrum Mobile’s unlimited data plan starts at just $45 a month. Consumers will enjoy the benefits of over $27 billion in technology and infrastructure invested by Charter since 2014. Spectrum Mobile consumers who also use Charter’s fixed broadband service will enjoy high-speed connections at home and on the go.

This new wireless offering solidifies Charter as one of the leaders in both wireline and wireless broadband, and it spurs further competition in the broadband market. Charter joins Comcast as the other major cable provider to enter into the mobile wireless market. This benefits consumers by putting downward pressure on wireless prices and by encouraging additional network investment from wireless competitors.

STREAMLINE 5G Processes to Match the Speed of Business

STREAMLINE 5G Processes to Match the Speed of Business

by Gregory J. Vogt

Global preparations are underway to ensure that 5G wireless deployment occurs at the speed of business. Consumers are hungry for wireless solutions to age-old problems. The significant 5G advances in broadband speed, capacity, and latency promise to produce a new leap forward in modern communications technology.

The innovations 5G technology permits – indeed, creates – could produce disruptive revolutions in a number of industries, including automotive, medicine, and education, just to name a few. But the current 5G conceptualizations cannot become a reality without determining a path forward. Government processes can interfere with such a path, absent streamlining when it is in order.

Senators John S. Thune (R-SD) and Brian Schatz (D-HI) recently introduced the Streamlining the Rapid Evolution and Modernization of Leading-edge Infrastructure Necessary to Enhance (STREAMLINE) Small Cell Deployment Act (S. 3157) which focuses on a big piece of the path forward. STREAMLINE, a bipartisan ray of sunshine, would:

·     Establish a 90-day deadline for localities to act on an infrastructure siting application (60 days for existing towers, with longer periods for small communities);

·     Ensure that fees for applications are fair and reflect only the publicly disclosed actual costs incurred; and

·     Ensure that all siting applications are reviewed on a technology neutral basis and are not based on overly broad and unfair restrictions that impede broadband deployment. 

Why is STEAMLINE so important?  An April 2018 report conducted by Analysys Mason, “Global Race to 5G- Spectrum and Infrastructure Plans and Priorities,” identified infrastructure as one of the two issues (the other is spectrum availability) that places United States behind China in terms of overall leadership in 5G technology. Recon Analytics has already reported the significant consumer welfare advantages to the United States in being the leader in 4G technology. Therefore, “winning the race” for 5G leadership is more than macho bravado. It has significant potential to bolster future national wealth that can redound to the benefit of millions of Americans in terms of jobs, economic growth, and technological innovation.  Accenture estimates that the wireless industry could invest up to $275 billion in 5G networks over seven years, growing GDP by $500 billion and adding 3 million new jobs.

Some zoning authorities and other municipal offices have been uncooperative with wireless siting applications, including imposing unreasonably high costs as well as creating lengthy delays. 5G will require rapid deployment of a large number of small cells. Deployment will be undermined by those jurisdictions that are not friendly to technological innovation.

A number of states have passed legislation that impose duties on cities and other government zoning authorities to reasonably process wireless siting applications, including those for the small cells necessary for 5G deployment. Although these state laws are highly beneficial, they remain both a patchwork and an incomplete effort in providing infrastructure access throughout the nation, including in rural America. National legislation such as STREAMLINE would impose a uniform minimum standard in terms of application costs and time of processing, essential to 5G, which will be a national, not state or local, business.

For its part, the Federal Communications Commission issued a wireless infrastructure rulemaking that potentially seeks to preempt local zoning authority restrictions on small cell deployment. But complete resolution of that portion of the infrastructure rulemaking has been pending for over a year, and there continues to be controversy concerning the rules that might be adopted. The rules adopted are likely to be challenged in court, particularly by organizations of cities and/or states, which almost always appeal the exercise of FCC preemptive authority. Although the FCC in the past has been fairly successful in using judicious preemption of state and local laws to ensure reasonable and nondiscriminatory permitting processes, federal legislation would provide a more uniform and certain path to establish prompt and reasonably priced siting application processes.

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I am particularly encouraged that STEAMLINE is a bipartisan bill introduced, apparently, after some negotiations with both industry and governmental organizations. Senators Thune and Schatz are to be congratulated for introducing STREAMLINE. I hope that the bill, or one substantially similar, can be rapidly passed by the Senate and taken up in the House. Legislation like the STREAMLINE bill, coupled with the spectrum allocation provisions of MOBILE NOW (included in RAY BAUM’s Act), would materially advance the ability of the United States to be the global leader in the 5G revolution and benefit America’s consumers.