WCA March 2012

Of related interest . . . ❖ Citing other US Census Bureau data, Businessweek.com on 28 th December noted that high-cost coastal states like New York and California seem likely to lose residents as the economy recovers, continuing a trend over the past decade that saw Americans moving to more affordable regions. From 2000 to 2010 the US population climbed 9.7 per cent. Five states – Nevada, Arizona, Texas, Utah, and Idaho – grew at more than twice the national pace, while California, the most populous state, had its smallest increase ever. The Northeastern states of New York, New Jersey, Rhode Island and Massachusetts are among those that had population increases of less than half the national average. Telecom A thwarted merger of AT&T and T-Mobile highlights the US wireless industry’s need for spectrum – and partnerships For much of last year, American mobile operators were preoccupied with the question of what the acquisition of T-Mobile USA by AT&T might mean for the wireless industry. When, on 19 th December, AT&T abandoned the huge ($39 billion) transaction, the emphasis shifted. Stacey Higginbotham of GigaOm re-framed the question bluntly: “How the heck will operators still make money while obtaining spectrum and building the networks they need to support robust demand for 4G wireless services?” The Federal Communications Commission (FCC) and the Department of Justice had effectively blocked a merger; they had also destroyed the hope of an interim solution to the acute spectrum shortage in the United States. As operators move from 3G to 4G services such as LTE, they must take on the substantially higher costs associated with remaking and upgrading their networks. Looking further ahead, to spectrum-hogging standards such as

LTE-Advanced, they will need more megahertz (MHz) all the time. As noted by Ms Higginbotham, AT&T’s bid to obtain additional spectrum was not solely an attempt to dispatch a rival. The company needs more spectrum for its LTE network, and having T-Mobile’s AWS airwaves ready for an LTE deployment would have smoothed AT&T’s migration path. (“AT&T Defeat Puts Focus on Wireless Deals,” 20 th December). With AT&T out of the picture – unless and until it returns with a more politically acceptable offer – smaller players such as Leap Wireless and Metro PCS will be eyeing T-Mobile. Dish Networks, a satellite TV provider eager to become a wireless operator, could try its luck. But GigaOm suggests that Sprint may provide the most interest as it weighs its choices: pursue T-Mobile; keep dealing with Clearwire; or continue to cultivate LightSquared, which plans to build a 4G LTE network but is having difficulty moving forward. When it comes to 4G, observes GigaOm, Sprint cannot go it alone: no one can. Noting the static quality of the wireless industry over most of last year, Ms Higginbotham wrote, “As we wait for T-Mobile to choose a dance partner and AT&T to decide if it wants to play nice with others or rethink its service offering, [2012] will be much more interesting for wireless.” ❖ Presuming it secures FCC approval, Verizon will seek to supply its megahertz needs by acquiring $4 billion worth of AWS spectrum from cable companies, amassing up to 60 MHz of spectrum for 4G services in some major metro areas. In the meantime, the company’s US network has been hit repeatedly with downtime. Droid Life reported on 28 th December that customers in major cities including New York, San Francisco and Chicago had been having trouble connecting to Verizon’s 3G and 4G LTE networks. San Francisco-based Josh Lowensohn of cnet.com noted that the outage was the third for Verizon that month, undermining the company’s advertised claim to operate a more reliable wireless network than competitors AT&T, T-Mobile and Sprint. Dorothy Fabian – Features Editor

44

Wire & Cable ASIA – March/April 2012