An Ignoble Experiment

2. FCC circulating proposal that bars combined spectrum auction bids by largest carriers

Verizon Wireless is pushing back on the Federal Communications Commission after its chairman criticized the mobile operator for extending a policy that would limit connection speeds for its a select subset of its heaviest users during peak network congestion.

Verizon Wireless CEO Daniel Mead said that he was "very surprised" by FCC's Tom Wheeler's letter, saying the chairman "misunderstood" company policy and some assumptions were "flat out wrong," reported CNET in an Aug. 4 article.

"There were many parts that were incorrect," said Mead, quoted in the article. "We have great respect for the FCC, but I'm not sure the chairman understood what we're doing exactly."

In the July 30 letter (pdf) from Wheeler, he wrote that he was "deeply troubled" by the company's announcement a few days earlier that it will slow speeds on its 4G LTE network starting in October.

The company in a July 25 announcement that it needed to extend its so-called "network optimization" policy to the top 5 percent of data users with unlimited data plans. Those users might experience slower data speeds for high-bandwidth applications such as high-definition video or real-time, online gaming. But the "vast majority of data customers" would not be affected.

However, Wheeler wrote that Verizon Wireless is describing network optimization as network management, which concerns the technical management of a network.

"It is not a loophole designed to enhance your revenue streams," he added. "It is disturbing to me that Verizon Wireless would base its 'network management' on distinctions among its customers' data plans, rather than on network architecture or technology."

Several news outlets, including The Verge, reported that Kathleen Grillo - Verizon Wireless' senior vice president of federal regulatory affairs - sent a formal response to the FCC on Aug. 1.

In the letter, she explained certain customers will see slower speeds "under very limited circumstances ... at particular cell sites experiencing unusually high demand," reported The Verge in its Aug. 4 article.

She also wrote that its competitors are engaged in the same practice. "This practice has been widely accepted with little or no controversy," wrote Grillo, according to the article.

For more:
- read FCC Chairman Tom Wheeler's letter to Verizon Wireless (.pdf)
- read Verizon's announcement about extending its network optimization policy
- read the Aug. 4 CNET story regarding Verizon Wireless CEO's comments
- read the Aug. 4 The Verge article about Verizon Wireless' Kathleen Grillo's letter to the FCC

Read more about: Daniel Mead, Kathleen Grillo
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By Dibya Sarkar

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3. U.S. may be well positioned to make transition to 5G cellular networks, report finds

The Federal Communications Commission is circulating a proposal that would ban Sprint and T-Mobile from jointly bidding on a spectrum auction next year.

In an FCC blog post Aug. 1, Roger Sherman, the agency's wireless telecommunications bureau chief, wrote that the agency needs to expand opportunities for small businesses in wireless auctions, which is difficult when more than 95 percent of current customers are served by the four biggest providers.

He wrote that the FCC needs to make sure that the largest providers don't limit participation by others in auctions. The agency is seeking comment on how to restrict the ability of these providers to join forces during an auction.

"If two of the largest companies are able to bid as one combined entity in the auction, their combined resources may have the effect of suppressing meaningful competition," wrote Sherman.

"Therefore, the item tentatively concludes that joint bidding arrangements between nationwide providers should not be allowed. It also asks questions about such arrangements between providers of different sizes," he added.

Several news articles, including one reported by Re/code, said that Sprint and T-Mobile—the nation's third and fourth largest carriers, respectively—have been in talks not only to merge, but also jointly bid in the 600 megahertz auction slated for mid 2015.

In that auction, the agency would compensate television broadcasters that voluntarily give up their airwaves and then resell those airwaves to wireless carriers to meet an increasing demand for mobile broadband services.

This low-band spectrum – below 1 gigahertz – now held by broadcasters is greatly coveted because it can travel long distances and penetrate deep into buildings and urban canyons.

For more:
- read the FCC blog post
- read the Re/code article

By Dibya Sarkar

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4. Usage-based Internet pricing policies could leave customers in the lurch, GAO finds

Several countries are actively engaged in helping telecommunications providers research and develop Fifth Generation, or 5G, mobile communications technology, but the United States may have the competitive edge over the next decade, a new report finds.

That two-page Congressional Research Service report (pdf) dated July 23 outlines the advantages of 5G networks, especially greater network speed and capacity to support "potentially billions of wireless devices, from tiny sensors to unmanned aerial vehicles" many of which will be connected through the Internet.

According to the report, consensus within the wireless industry is that 5G will combine long-term evolution, or LTE, cellular network and IEEE - which stands for Institute of Electrical and Electronics Engineers - WiFi standards, supplemented with new technologies.

The report notes that since the U.S. is a leader in 4G LTE deployment, it will swiftly move to 5G by 2025.

The report says that the top four U.S. wireless providers with a national LTE footprint will most likely be able to repurpose at least some of their licensed spectrum holdings. And while future Federal Communications Commission policy decisions will help determine if the 5G market will be open to new entrants, the report says current policies favor providers with existing 4G cellular networks.

Plus, some industry experts believe that IEEE WiFi standards for the 5 gigahertz band is key to 5G network deployment. The report points to a recent FCC ruling that is expected to release 100 megahertz of unlicensed spectrum for high-speed WiFi in the 5 GHz band.

Globally, several collaborative research efforts are underway, the report states. Key international programs are being run by the European Union, China and South Korea.

The European Union launched the 5G Infrastructure Public-Private Partnership, or 5G-PPP, in 2014. It's partnering with Ericsson, Alcatel Lucent, and Nokia. Other industry members include European telecommunications firms and European research subsidiaries of Asian firms such as NTT DOCOMO and Huawei, the report says.

Additionally, many of the firms involved in 5G-PPP are participating in another European Union 5G project called the Mobile and Wireless Communications Enablers for the Twenty-Twenty Information Society, which seeks to lay the foundations for a European 5G architecture and allocate radio frequency spectrum by 2020.

Three Chinese government ministries are sponsoring 5G research and development program through the joint IMT-2020 (5G) Promotion Group. The organization's goals include developing 5G technologies for China and facilitating cooperation with foreign companies.

South Korea's 5G Forum, led by SK Telecom, seeks to cement its global leadership in 5G technologies as it also competes with collaborative efforts in Japan, Europe and China.

For more:
- read a summary of the report by the Federation of American Scientists (the CAS report, number R43595, is not directly accessible to the public) (.pdf)

Read more about: Ericsson, Nokia
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By Henry Kenyon

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