Verizon Wireless

2008 Year in Review: LTE gains significant momentum

Lynnette Luna — Mon, 22 Dec 2008 02:47:37 -0500

LTE (Long Term Evolution) was supposed to significantly lag behind WiMAX, but the technology gained significant momentum in 2008. The Third Generation Partnership Project (3GPP) has completed the majority of specifications for standardization of LTE next-generation technology, meaning the full Release 8 standard is on track for completion by March. And a number of operators, including Verizon, T-Mobile and China Telecom, are champing at the bit to deploy LTE. Verizon Wireless has indicated it will have LTE up and running by the end of 2009. And what became extremely significant for the technology was the fact that a number of CDMA operators, including Verizon and Bell Canada, are moving to LTE, which is supposed to be the technology path for the GSM community.

Vendors continue to announce their momentum with trials. Motorola recently announced it conducted the first over-the-air data sessions for LTE technology in the 700 MHz spectrum in an outdoor field test that included mobile video streaming and other data-heavy applications.

Meanwhile, while we won't likely see a merger between WiMAX and LTE, Clearwire CEO Ben Wolff recently told reporters that while Clearwire is committed to WiMAX, it wound consider LTE in the future "if it makes sense for us to do so several years from now when LTE becomes commercially available."

The bottom line: LTE deployments will likely happen in the U.S. market on a significant basis first because of the amount of spectrum license holders have in the 700 MHz band. Elsewhere, large swaths of spectrum are hard to come by for significant deployments of LTE.

2008 Year in Review: All hype and no action on femtocells

Lynnette Luna — Mon, 22 Dec 2008 02:21:46 -0500

The hype surrounding femtocells reached a fever pitch in 2008, but with little in terms of market rollouts. Those router-sized mobile home base stations were billed at the "next big thing" in fixed-mobile convergence, promising to solve the many shortcomings faced by existing WiFi/cellular FMC services and enable operators to offer consumers high-speed data, VoIP and conventional voice services in the home with reduced infrastructure costs and cheaper prices for the consumer.

Sprint has been the only operator to roll out femtocells in the U.S. In July, the operator expanded its Airave femtocell offering to all customers nationwide and retooled its price plans for the in-home wireless technology. We have yet to hear about any milestones Sprint has made with the product.

In April, Verizon Wireless CTO Tony Melone said at the CTIA Wireless 2008 trade show the carrier would begin offering femtocell products and service plans sometime this year. Then in October, AT&T and Verizon announced plans to move ahead with femtocells. AT&T has indicated it will begin trialling femtocells later this year and into 2009. Verizon Wireless said it may introduce its first femtocell product next year.

The bottom line: An unclear business case will likely lead to a slower rollout in 2009 as operators grapple with how to convey the value of femtocells to their customers. The good news is that the Third Generation Partnership Project (3GPP) has now finalized specs for femtocells.

Verizon says LTE will be here next year

Lynnette Luna — Wed, 10 Dec 2008 22:47:04 -0500

Verizon Wireless CTO Dick Lynch said the operator expects to have Long Term Evolution technology in service somewhere in the U.S. by December 2009. Lynch, speaking at Cisco Systems' C-Scape conference in San Jose, also said Verizon will offer femtocells, which will likely include WiFi as an added feature, shortly after introducing LTE.

"A femtocell of LTE or an access point of WiFi is a really critical component of the way customers want their broadband delivered," Lynch said.

Verizon's move represents an aggressive timeframe for LTE, which has largely been understood to hit the market in 2010. However, speakers at this week's LTE America's conference indicated they were skeptical that a 2010 LTE launch was attainable, according to an article in RCR News. LTE was supposed to be standardized by the end of this year, but the date has now been pushed to March.

Qualcomm has also recently issued an aggressive timeline for releasing engineering samples of its LTE/HSPA+ device modem. It is trying for the second quarter of 2009. The company, however, cautioned commercial availability of of the MDM9000 "still depends on a number of very uncertain factors, many of which are dependent on mobile network operators' plans and investment priorities about how and when to roll out this next stage of wireless technology," said Enrico Salvatori, senior vice president and general manager for Qualcomm Europe, speaking at the company's inaugural European Innovation Summit last week.

Why the rush for Verizon? Ken Hyers, analyst with Technology Business Research, said in a recent interview that Verizon desires to push aggressively with LTE because it's running out of data capacity on its CDMA EVDO network and must compete with higher speed HSPA+ AT&T Wireless is rolling out before its own LTE launch.

"The operator's entire reputation is built around network quality and coverage and having the best network," Hyers said. Verizon "will have to continue increasing data capacity."

For more:
- read Computerworld
- check out RCR News

Related articles:
Verizon Wireless to trial and deploy LTE
Vodafone CEO: Verizon likely to deploy LTE first
Qualcomm announces aggressive plans for LTE

Carriers still mixed on WiFi in handsets

Jim Barthold — Fri, 05 Dec 2008 11:44:12 -0500

The value of WiFi in a mobile device depends more on the network than the chips that power the device or the applications that run on it.

It's hardly news that carriers like AT&T and T-Mobile are gaga for WiFi, while Verizon Wireless is lukewarm at best and Sprint Nextel, with its new Clearwire mobile WiMAX relationship, is a WiFi waffler.

The carriers like to control their networks and the devices that run on them but it's unlikely that kind of skewed business model will be able to exist much longer as more consumers use unlicensed spectrum to access broadband applications on any number of consumer devices, including cell phones. Even the least ardent WiFi fan--Verizon Wireless--probably won't be able to remain aloof.

"We're re-looking at WiFi in terms of customer experience. We've not made a decision on where we are with that," said Brenda Raney, a Verizon Wireless spokeswoman who repeated the corporate mantra that a powerful 3G network obviates WiFi.

The push for WiFi is led by players such as Skyhook Wireless, which offers a software that creates a hybrid 3G/WiFi environment for GPS. But Skyhook isn't alone. It has solid support from the chip community in its belief that 3G alone won't adequately deliver for every device from every location--particularly in urban valleys and indoors--so you need WiFi to bolster the GPS experience.

Qualcomm, a chipmaker that even Skyhook CEO Ted Morgan admits has "traditionally been a little anti-WiFi," is part of the GPS community embracing WiFi.

Leslie Presutti, product management director-CDMA for Qualcomm, said the chipmaker can't afford to be anti-anything when it comes to providing a good GPS experience.

"Customers are looking for the best functionality and they want to have more ubiquity for GPS whether they're indoors or outdoors or in a challenging environment," she said. That means something that goes beyond Qualcomm's Assisted GPS (A-GPS) product even though "everyone in the market agrees (it) is the best solution for even reaching indoors today."

Verizon is so enamored with A-GPS that Raney said there is no need to adopt WiFi for GPS. "We don't have that issue," she said.

Everyone does, countered Presutti, without singling out Verizon. "A-GPS has its limitations so when there are environments where we know A-GPS just won't be able to operate to the degree that we would like it to, we start to look for hybrid or complementary technologies," she said.

WiFi, everyone agrees, is a complementary technology, even if it doesn't always draw carrier compliments.

For AT&T, which recently acquired privately held managed WiFi services provider Wayport for about $275 million in cash, WiFi is a way of life. The company leans heavily on the connecting to the unlicensed spectrum for application downloads to its iPhone and links its triple-play residential networks with WiFi.

"We want to provide ubiquitous broadband for our customers and our WiFi footprint is a key piece of that," said Jenny Bridges, an AT&T spokesperson who responded to interview requests via email. However, AT&T declined to talk about Wayport when it announced the acquisition.

Without specifically naming AT&T, Raney said Verizon's needs are different because "we have such a pervasive 3G network. WiFi is a complement to that but ... we don't necessarily need to offer it."

That's changing, even though it's probably not happening fast enough for WiFi proponents. "Verizon has traditionally been allergic to WiFi. They view it as unclean and a risk to their business," said Morgan.

The sledgehammer that's breaking down Verizon's resistance is, in all likelihood, not Skyhook's GPS system but just the full weight of the WiFi movement. To say WiFi is ubiquitous would be understating.

"There's a pretty compelling case to put WiFi in a phone. If you think about things like spectrum management and making it easy and a good experience for people to do all the multimedia on the phone ... WiFi makes sense," said Kelly Davis-Felner, marketing director of the WiFi Alliance. "Generally speaking, most carriers have come around to the idea that WiFi is actually additive to their strategy and won't cannibalize subscribers off the paid minutes."

Verizon is going to have to give in eventually, Davis-Felner deduced, even though the company's most hyped new product, the BlackBerry Storm, doesn't include WiFi.

"A lot of the coverage of the Storm really noticed that the WiFi was missing. It's a feature that's expected and people notice when it's gone," she said.

Unlike BlackBerry devices offered by other operators, no Verizon BlackBerry device is WiFi-enabled. That doesn't mean every Verizon phone is WiFi vacant; it just means the carrier is selective about the types of phones it offers with the capability, said Raney, who reiterated that 3G is enough.

"Wireless is primarily designed for mobility and that's where the company's focus has always been, people who want to take their connectivity with them," she said. "We offer customers 3G networks; they don't have to go looking for a hotspot. They pay us on a monthly basis for the service and it's a secure network. WiFi typically is not secure."

Verizon gets hands on 700 MHz licenses without spectrum divestiture

Lynnette Luna — Sun, 16 Nov 2008 23:13:00 -0500

The FCC gave its final blessing to the $4.7 billion worth of licenses Verizon Wireless won at the 700 MHz auction, and it refused Google's request that the FCC impose stricter conditions when it comes to the open-access requirements that are attached to Verizon's licenses. Google petitioned the FCC in May to obtain a guarantee from Verizon Wireless promising the operator will honor its commitment to open access.

Despite now owning more than 95 megahertz of spectrum in 17 markets after winning the licenses, the FCC concluded Verizon's ownership of that much spectrum wouldn't be anti competitive. In addition, the FCC said it wouldn't count spectrum won at future auctions toward the 95-megahertz threshold.

For more:
- read RCR Wireless News

Related articles:
How much spectrum do AT&T and Verizon have?
Could the 700 MHz auction trigger spectrum caps?
Google calls out Verizon Wireless' 'open' plans

AT&T, Verizon move ahead with femtocells

Lynnette Luna — Thu, 30 Oct 2008 00:57:58 -0400

AT&T and Verizon this week announced plans to move ahead with femtocells. AT&T has indicated it will begin trialing femtocells later this year and into 2009. Verizon Wireless said it may introduce its first femtocell product next year.

"As the nation's leading provider of both wireless and broadband, it makes sense that we would examine the potential benefits of femtocells for our customers," an AT&T spokeswoman told Unstrung via email. "We're currently doing testing in our labs and a trial is planned for later this year."

A Samsung-made "Ubicell" femtocell branded by Verizon is now at the FCC awaiting approval. Verizon Wireless CTO Tony Melone had hinted earlier in the spring that Verizon may consider a femtocell deployment as an option.

"We are looking at femtocell technology and will soon be performing user tests," a company spokesman said. "We could well have a product on the market early next year, but we have made no public announcements about that yet."

Sprint Nextel already offers femtocells on a nationwide basis.

For more:
- read Unstrung
- check out FierceWireless

Related articles:
Sprint launches femtocell service in two markets
Femtocells face their tipping point

AT&T announces initiative to bring connectivity to consumer electronics

Lynnette Luna — Wed, 15 Oct 2008 23:34:19 -0400

AT&T announced an initiative to bring wireless connectivity to new consumer electronics devices and applications--including personal computers, mobile Internet devices or mini computers, in-car entertainment and navigation systems, cameras and machine-to-machine communications solutions.

AT&T appointed Glenn Lurie to head the Emerging Devices initiative. The initiative is similar to what Sprint and Clearwire envision for WiMAX. Clearwire, which is expected to bring Sprint's WiMAX business in the fold by the end of the year, wants to embed WiMAX chips into a plethora of devices. Verizon Wireless is working closely with device makers and distribution partners to build momentum behind this "wireless in every device" vision.

What will be interesting to see is the amount of control AT&T tries to wield over the process as such a move could relegate an operator to a "dumb pipe" status. The Clearwire open-access network is envisioned to enable a whole host of devices and applications without Clearwire touching the process. Interestingly, Ben Wolff, CEO of Clearwire, said his company is actually concerned about becoming a commodity because of this open-access strategy.

"The expectation is that we want to sell value-added services," Wolff said during FierceWireless' virtual event, The Future of 4G. "We have to be able to deliver services in a way that has the right to earn the customer's business. Our view is people will be able to use us just for access if they want, but our job is creating enhanced services that our customers really want."

For more:
- read FierceWireless
- And, check out our "Future of 4G" virtual event. All panel sessions will be archived for several months. Register here.

Canada's CDMA operators defect to HSPA/LTE

Lynnette Luna — Sat, 11 Oct 2008 15:18:18 -0400

Canada's Bell Canada and Telus Mobility announced plans to overlay their CDMA networks with HSPA technology by 2010 with an eventual move to LTE technology. The announcement builds on the CDMA network-sharing deal the two CDMA operators have had in place since 2001.

The move follows Verizon Wireless' decision to deploy LTE in the 700 MHz spectrum it won earlier this year. However, Verizon is skipping an HSPA deployment, choosing to continue investing in its EV-DO network that will likely complement the new LTE network for some time. Telus said the HSPA deployment would enable "a smoother transition to long term evolution (LTE) technology."

"Bell's transition to the global 4G LTE standard with a combined EV-DO and HSPA network path aligns us with more than 30 major carriers worldwide planning a similar move to LTE," said Stephen Howe, CTO with the operator. "This broad global technology ecosystem will mean a fast, efficient and cost-effective network transition to 4G LTE, and access to the broadest possible range of next-generation phones and data services."

Telus Mobility and Bell Canada both won spectrum in Canada's AWS-1 auction.

For more:
- read RCR News

Related article:
Canadian spectrum auction garners $4.25B

ABI: LTE market will support 32M subs by 2013

Lynnette Luna — Mon, 18 Aug 2008 00:55:04 -0400

ABI Research is forecasting more than 32 million Long Term Evolution (LTE) subscribers by 2013, despite the fact that LTE networks won't be commercial before 2010. But as major operators China Mobile, Vodafone and Verizon Wireless have announced their intentions to deploy LTE, ramp up of the technology could move swiftly. ABI predicts that Asia-Pacific countries will account for the largest regional share of the LTE market, with about 12 million LTE subscribers in 2013. Article

MetroPCS picks LTE for 4G

Lynnette Luna — Mon, 11 Aug 2008 15:35:45 -0400

MetroPCS is the latest CDMA operator to announce plans to migrate to OFDM-based LTE (Long Term Evolution) technology as its next-generation strategy. The flat-rate operator is following CDMA operators Verizon Wireless and Alltel.

During the company's conference call, MetroPCS Chairman, President and CEO Roger Linquist said a rollout will be "in the not-so-distant future" as LTE will help expand capacity and improve data speeds. Capacity is what an operator like MetroPCS is most concerned with as it offers flat-rate services.

For more:
- read RCR Wireless News

Related stories:
Alltel joins AT&T, Verizon Wireless with LTE roadmap. Alltel LTE story
Verizon committed to LTE. Verizon LTE story

Sierra Wireless buys Junxion

Lynnette Luna — Tue, 05 Aug 2008 22:31:01 -0400

Sierra Wireless has purchased the assets of Junxion for an undisclosed amount. Junxion offers the Junxion Box that essentially creates a hotspot that allows users to remotely connect to WiFi and share 3G connections. The box enables applications such as telemetry, landline replacement, landline fail-over and video monitoring--all heavy data-loading applications. Junxion's technology is already used by AT&T, Verizon Wireless and Sprint Nextel. Sierra plans to incorporate Junxion with its mobile and machine-to-machine groups.

For more:
- check out Unstrung

Related stories:
Share Your 3G with the Junxion Box. Junxion story
Sierra ends CradlePoint acquisition. Sierra story

As 3G laptops become must-haves for enterprise, how will operators respond?

Mon, 02 Jun 2008 06:59:58 -0400

Gartner is predicting that laptops embedded with 3G are likely to become a must-have for the business world beginning next year because new technologies--namely those that incorporate various frequencies for better coverage--and better pricing plans are making them more attractive. Today, the high cost hardware and expensive monthly charges have so far kept the enterprise from investing in laptops embedded with 3G. But that is expected to change.

Does that mean operators will be pushed to lift the 5 GB per month cap they currently have in place on their "unlimited" laptop data packages? Both Verizon and AT&T have a 5 GB cap on unlimited usage while Sprint has no cap but is rumored to be instituting one shortly.

As attractive as the wireless data enterprise market is, 3G operators are in a bit of a conundrum when it comes to mobile Internet access as voice capacity--still the bread and butter of this business--is being sacrificed for high-speed data services. As such, it's difficult to offer a truly unlimited high-speed data plan. That's why Verizon and others have never positioned 3G as a replacement for DSL.

As the enterprise becomes more attracted to 3G-enabled laptops because of the reasons Gartner outlines, usage will surely skyrocket. You have to think that enterprise customers will use the service even when they aren't traveling.

In March, iPass released a new survey that measured 3G enterprise usage in 2007, giving insight into how the enterprise market is shaping up. It found monthly usage increased steadily throughout the year, growing from an average of 152 MB per user in the first quarter of 2007 to 190 MB in the fourth quarter. Of those more established users who had been on the service since January 2007, monthly usage averaged 188 MB in Q1 and 225 MB in Q4, indicating that usage seems to rise with experience.

At the extreme, a small number of users exceeded 2 GB of usage in a given month. These heavy users accounted for less than one half of one percent of all users in the sample and were offset by the 32 percent of business people who used an average less than 50 MB in a month.

Of course, those statistics come from the encumbered environment Gartner mentioned. Clearly, operators have to be careful about the traffic mix in their networks, but they certainly don't want to alienate the valuable enterprise user either. It will be interesting to see how they tackle the issue going forward. Will femtocells in the enterprise and where business people travel to be the answer? Or will it be 4G?--Lynnette

Alltel chooses LTE for 4G

Mon, 19 May 2008 06:59:55 -0400

In a move that is not surprising, Alltel announced it was committed to evolving its network to LTE during the next five years. The decision isn't surprising given the fact that Alltel typically follows in Verizon's footsteps when it comes to technology decisions. Earlier this year Verizon committed to the LTE standard to align itself with partner Vodafone.

"We do currently plan to move towards LTE in the three-to-five year timeframe vs. WiMAX, but we're still early in that," Alltel President and CEO Scott Ford said during the operator's first-quarter conference call.

Alltel's COO Jeff Fox, however, noted that the carrier won't be talking seriously about LTE this year. "We are working through our planning phase and will be talking to our board about all that over the next two quarters," Fox said. "Certainly there's no money for 4G evolution anytime in our near-term plans, and so I think from a cash-flow perspective you should not expect to see us talking about 4G anytime at least in 2008." Plus, does Alltel have enough spectrum to deploy LTE? The operator didn't win anything at the 700 MHz auction.

For more on Alltel's LTE choice:
- read this RCR article

Verizon, Google spar over open access again

Mon, 12 May 2008 06:59:54 -0400

After Google filed a petition with the FCC, insisting that the regulator put in place stricter terms for Verizon Wireless' C Block 700 MHz open access provisions, Verizon Wireless claimed the petition had "no legal basis." The carrier plans to file its own petition with the FCC soon, but noted that "it's really no surprise that despite not winning spectrum, [Google] continue[s] to try to change the rules and further their own business interests through the regulatory process." The carrier said it knew the rules before it took part in the auction and "of course" they will abide by them, but if it doesn't the carrier points out that "Google or anybody else..." can use "legitimate and expedited ways to address that."-Brian Dolan

For more on Verizon's response:
- read this article from Verizon's policy blog

Sprint's backhaul conundrum

Mon, 05 May 2008 06:59:58 -0400

Last month Sprint Nextel said provisioning of backhaul is the primary hold-up to the operator's nationwide deployment of mobile WiMAX. Sprint, which was supposed to launch its Xohm network in April, is having difficulty finding high-capacity transport links to connect cell sites as typical T-1 lines that feed today's mobile networks are inefficient for high-speed wireless broadband data.

The problem is that the majority of Sprint's sites today are T-1 lines, and there just isn't a lot of fiber and microwave options available across the country. The link between the local area network and local fiber ring is still challenged by older technology and poor coverage, offering limited access to high-capacity connections. The use of microwave is still limited to operators' highest density sites as they have traditionally rolled it out on as-needed basis.

Most experts believed that Sprint was going to initially start out with T-1s for backhaul of the WiMAX network since it was readily available, eventually migrating to backhaul technology capable of dealing with high-speed broadband data. Perhaps Sprint decided the quality of WiMAX was at stake, and now it finds itself scrambling for alternatives. Suppliers are short in this area because they haven't seen the demand coming from operators and because T-1 lines are a highly lucrative business.

With AT&T and Verizon rolling out Long Term Evolution in two years, we'll begin seeing a big demand T-1 alternatives, although these two landline companies can leverage the much of the fiber networks they have. The dark horse is cable. With a deep penetration of fiber, they could be powerful partner for a company like Sprint, but have yet to make any significant moves in the area.

The next few years should see an explosion in alternative backhaul technology providers, making the traditionally boring business quite interesting--Lynnette

NextWave selling big swathes of spectrum

Mon, 28 Apr 2008 06:59:58 -0400

Just in time. Last week NextWave announced it enlisted the help of Deutsche Bank and UBS to assist in the sale of its vast U.S. spectrum holdings, which include licenses and lease rights for a total of 4.7 billion MHz/pops of spectrum comprised of 154 AWS licenses in the 1.7/2.1 GHz band, 30 WCS licenses in the 2.3 GHz band, and 39 EBS and BRS licenses and spectrum leases in the 2.5 GHz band.

With the last of the so-called beach front spectrum--the 700 MHz airwaves--being auctioned and swallowed up primarily by AT&T Wireless and Verizon Wireless, NextWave has received multiple offers for its spectrum assets, NextWave President and CEO Allen Salmasi said.

For sure, NextWave will be able to get top dollar for the spectrum now that the FCC doesn't plan to release anymore spectrum, and there are still a number of companies chomping on the bit to get their hands on spectrum. NextWave's state mission in the past was to make spectrum available to companies that wanted to enter the mobile broadband space and use its products and technologies, including WiMAX and TD-CDMA. Today, NextWave says it no longer needs this spectrum in order to reach its product sales objectives.

NextWave's sale could give WiMAX the bigger U.S. foothold that the technology's proponents were hoping for with the 700 MHz auction. LTE, not WiMAX, emerged as the big technology winner in the 700 MHz band as AT&T and Verizon announced their intentions to deploy the 4G technology in the major swathes of spectrum they won.

While not announced by the WiMAX Forum, sources close to the forum say an FDD profile for the AWS band in the U.S. is imminent as is one for the 2496-2690 MHz band, which is reserved for broadband services in the U.S and in many European countries such as the UK. SpectrumCo, the joint venture formed by Sprint (which withdrew from the consortium in August) and cable heavyweights Comcast, Cox, Time Warner and others, purchased $2.37 billion worth of spectrum in the AWS band last year and has yet to announce its plans for the spectrum. But sources say WiMAX equipment is now being tested for this band. Moreover, speculation is that Comcast might be mulling an entrance into the wireless broadband market as a network operator.--Lynnette

How much spectrum do AT&T and Verizon have?

Mon, 28 Apr 2008 06:59:57 -0400

In just how many markets do AT&T Mobility and Verizon Wireless exceed 95 megahertz of spectrum? Since spending a collective $16 billion in the recent 700 MHz auction, analysts have believed the two now hold more than 95 megahertz of airwaves in several markets. The FCC is looking at at whether it should request winning bidders to dispose of some of that excess spectrum.

But according to a report in RCR Wireless News, concerns may have been overstated over the number of markets where the two operators exceed 95 megahertz. Based on the publication's interviews and research from investment firms, AT&T and Verizon do not appear to have exceeded the FCC's 95 megahertz spectrum screens in as many markets as have been suggested by Congress. However, it appears the two exceed the 95-megahertz threshold in more than a dozen large and small markets. The FCC uses a 95-megahertz screen to scrutinize spectrum holdings and mergers. The screen was applied at a higher level in the FCC's approval of AT&T Mobility's purchase of Dobson Communications last year.

According to analysis from Alan Weissberger with DCT Advisors, AT&T or Verizon exceeds the 95 megahertz threshold in eight of the top 10 U.S. markets, 17 of the top 25 markets and 38 of the top 100 markets. See his chart of these markets here. In the Dallas-Fort Worth market, for instance, AT&T now holds 124 megahertz of spectrum.

For more about the vast spectrum holdings of Verizon and AT&T:
- read this article from RCR Wireless News

Related articles:
Could the 700 MHz auction trigger spectrum caps? Editorial on 700 MHz auction
Leap's testimony on the 700 MHz auction

Could the 700 MHz auction trigger spectrum caps?

Mon, 21 Apr 2008 06:59:58 -0400

Could the recently completed 700 MHz auction trigger spectrum caps--which were lifted in 2003--and other regulations on the mobile wireless industry?

Last week, some in Congress lamented that AT&T and Verizon Wireless walked away with the lion's share of the licenses. AT&T and Verizon Wireless spent $16 billion, or 85 percent of the total money raked in from the auction. Analysts believe the two now hold more than 95 megahertz of spectrum in several markets.

According to an article in BusinessWeek, FCC Chairman Kevin Martin told members of Congress during a hearing last week that he will look at whether the FCC should request winning bidders to dispose of some of that excess spectrum.

But Martin also found himself defending the auction and arguing against the notion that AT&T and Verizon won the lion's share of licenses. He pointed out that congressional leaders and other various parties had plenty of time last year to assist the FCC in crafting the auction rules. He also noted that small and rural providers won 500 licenses covering nearly 60 percent of the spectrum available outside the top 15 markets, in certain slices of spectrum that were available for sale at the auction. A total of 99 bidders other than Verizon and AT&T won 754 licenses-representing almost 70 percent of the licenses sold. And a bidder other than Verizon or AT&T won a license in every market.

Still, Verizon and AT&T spent the bulk of the money at auction. And that is to be expected. Simply put, these two incumbents have the wherewithal to spend billions on licenses and billions more to build out network infrastructure. That's their core business. And with the 700 MHz band the last of the so-called beach-front property, these operators were prepared to drive the price up to a hefty level, especially given the fact that new 4G networks need a nice chunk of extra spectrum, about 20 megahertz, to deliver the broadband data speeds that are advertised.

The FCC has tried in the past to make special concessions for new and smaller entrants with disastrous effects. The PCS C-block auction resulted in bankruptcies and a number of companies essentially serving as shell companies for large incumbents.

In the wireless broadband world, I'd have to say that we are seeing some smaller companies find their niche. TowerStream is offering pre-WiMAX in several markets, successfully targeting the enterprise market with services that fixed incumbents can't offer. Xanadoo has spectrum in the 2.5 GHz band and is targeting consumers and small- to medium-sized businesses with WiMAX services to compete with DSL and cable offerings. The ISP offers seven different pricing plans beginning at $15 per month with plans to soon launch a prepaid wireless broadband offering. This large number of pricing plans is how Xanadoo is differentiating itself from DSL and cable, which typically only offer two different plans and require bundling of services.

And many winners of 700 MHz spectrum have varying business plans, with CenturyTel, for instance, using wireless to extend DSL over rural areas. Some will offer TV services. We have yet to hear about many of the winners' business plans.

In light of this, it's too early for the FCC to make any rash decisions about placing additional regulations on the mobile industry. And Congress should wait to see what the impact of the 700 MHz auction will really be.--Lynnette

Vodafone CEO: Verizon likely to deploy LTE first

Thu, 17 Apr 2008 06:59:55 -0400

Vodafone CEO Arun Sarin indicated in an interview with BusinessWeek that its partly owned venture Verizon Wireless would likely have to upgrade before Vodafone because the company is "riding the 3.5G wave."

"We are headed [toward LTE]. But we want to get a lot of the technical and standards and intellectual-property rights issues resolved before we say we are ready to sign up for it. Frankly, in this particular instance we have a great advantage. We have deployed something called HSDPA [High-Speed Downlink Packet Access] which is 3.5G. So if you said there is no technology available to you before 2012, we at Vodafone are completely relaxed because we are riding the 3.5-generation wave," Sarin said. "In fact our affiliate here in the U.S., Verizon Wireless, will need the fourth-generation wave faster than we do."

Is that really the case? Simply put, Verizon now has the spectrum in the 700 MHz band to deploy LTE. Vodafone has to ride the 3.5G wave until it has enough spectrum to deploy LTE. And EV-DO Rev. A appears to be running on all cylinders for Verizon Wireless.

For more on Sarin's 3.5G reasoning:
- read the whole interview over at BusinessWeek

Related articles:
- 700 MHz winners reveal plans, no big surprises Report on 700 MHz auction
- Verizon Wireless to trial and deploy LTE Report on Verizon's LTE plans

Novatel issues profit warning

Thu, 17 Apr 2008 06:59:53 -0400

Novatel Wireless, which sells laptop cards and embedded modems, warned it would miss its first-quarter financial forecast. The company reduced its first-quarter earnings estimate to $91 million from $110 million and significantly cut its per-share earnings expectations.

Novatel said it was impacted by rivals' less expensive products at Verizon Wireless stores, and it missed shipping a new modem to a major operator customer.

To read more about Novatel's profit warning:
- check out this RCR Wireless News article

Related articles:
- Novatel releases HSPA modems, software to boost speeds Novatel modem story
- Novatel hits four-year low on revised forecast Novatel stock story