WASHINGTON May 12, 2011- The Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights assembled leading mobile CEOs Wednesday to explore the proposed merger between AT&T and T-Mobile.
“The proposed merger between AT&T and T-Mobile will bring together two of the four remaining national cell phone carriers to create the nation’s largest cell phone network, with an estimated 43 percent market share,” said Sen Herb Kohl (D-WI), Chairman of the Subcommittee, setting the tone for the hearing. “Should this deal be approved, AT&T and Verizon will control close to 80 percent of the national cell phone market.”
Kohl highlighted that the wireless industry is increasingly become concentrated among only four national providers, T-Mobile, AT&T, Verizon and Sprint. Kohl fears that the merger will allow AT&T to have a stranglehold on the already scarce spectrum market.
Sen. Patrick Leahy (D-VT) along with Kohl asked AT&T to guarantee that if the merger was approved the company would meet its promise of expanding mobile broadband to 97 percent of Americans.
“I want assurances that these requirements will be met,” Leahy said. “AT&T represented to me that within two years, this acquisition will result in 250,000 more Vermonters having access to its 4G service than would otherwise be serviced by either company on its own – but I am naturally skeptical.”
Leahy was also curious as to why AT&T needed T-Mobile to expand its spectrum holdings since AT&T is one of the nation’s largest spectrum holders. During her testimony Gigi Sohn, Co-Founder of Public Knowledge, said that AT&T does not use one third of the spectrum the company owns in the top 25 markets.
Randall Stephenson, CEO of AT&T, said that the company needs the spectrum owned by T-Mobile to expand its coverage into rural America and further expand 4G Long Term Evolution coverage.
Stephenson also responded to Sohn’s comment by saying that AT&T will exhaust its current spectrum holdings over the next two years in those large markets. Additionally, the firm needs to maintain older networks while it transitions its users.
With the newly acquired spectrum, AT&T claims it will be able to expand its 4G coverage to 97 percent of the population, which will cover 50 million more people than the firm would be able to cover using its current spectrum holdings.
T-Mobile USA’s CEO Philipp Humm said that if it does not merge with AT&T, T-Mobile customers will not be able to gain access to 4G Long Term Evolution. T-Mobile does not possess the necessary spectrum to develop a LTE network and its parent company, Deutsch Telekom, does not have the funding to purchase additional spectrum.
Humm also assuaged the Senators’ concerns about the potential rise in prices for consumers with the decrease in competition.
“Due to the complimentary nature of the T-Mobile and AT&T networks, when the firms merge the costs to operate the networks will decrease, creating price savings for consumers,” Humm said.
Kohl pressed Stephenson on the price issue, asking if current T-Mobile customers would be able to keep their lower price plans. Stephenson said that AT&T would allow for the maintenance of current prices for T-Mobile customers and that prices could potentially drop for all of its customers due to the gained efficiencies.
Daniel Hesse, CEO of Sprint Nextel, refuted the claim that prices would drop saying that the newly formed duopoly would not have a viable competitor to drive prices down. Currently both Sprint and T-Mobile are able to drive down prices by offering competitive nationwide plans.
Hesse also believes that this new duopoly will limit handset availability and decrease overall innovation.
“Competition drives innovation, and innovation is vital to maintaining the prosperity and leadership of this country,” Hesse said. “Because wireless communication has become a fundamental gateway to so many other related industries, it is imperative we advance competitive, market-driven policies that maximize this engine of innovation and economic growth. Handset manufacturers will be less likely to partner with anyone other than the duopolists, because access to their nearly 80 percent of the market’s customer base will be sufficient.”
Cellular South CEO, Victor Meena, echoed Heese’s fears that the new duopoly would lock out smaller regional carriers from gaining access to new smartphones. Regional carriers already struggle to gain access to these handsets.
“AT&T already uses their market power to enter into exclusive contracts preventing others from getting access,” Meena said. “By acquiring T-Mobile, [AT&T] will only become more powerful,”
Sen. Al Franken (D-MN) pressed Stephenson on the issue of handset exclusivity, asking if the firm would stop entering into these agreements. Stephenson said that these agreements provide handset makers with production guarantees that allow for large production runs that decrease overall price.
National 6G Strategy Bill Passes Senate Commerce Committee
The Next Generation Telecommunications Act received bipartisan support.
WASHINGTON, March 22, 2022 – Legislation that would create a council to advise Congress on 6G and other wireless technologies and how they may power smart cities on Tuesday passed the Senate’s Commerce, Science and Transportation committee with bipartisan support.
In addition to advising Congress on the state of technology in the telecommunications industry, the council would also develop a comprehensive, national telecom strategy, which will address topics related to technology, workforce demands and security.
The bill, Next Generation Telecommunications Act, S.3014,was introduced by Sen. Catherine Cortez Masto, D-Nev., who said in a press release that the legislation is a key part of her state’s goal of being “on the cutting edge of new technologies.
“We’ve got to promote American competitiveness in these kind of cutting-edge technologies that we’re building in Nevada,” Cortze Masto said in a statement on the bill. “That means improving access to quality broadband, ensuring we have the necessary workforce, and putting in safeguards to make sure we protect emerging technologies.”
The council would be comprised of 15 members including the deputy secretary of Commerce, the assistant secretary of Commerce for Communications and Information, the undersecretary of the National Institute of Standards, the chairperson of the Federal Communications Commission, and the director of the National Science Foundation.
The council would also feature three members appointed by the majority leader of the Senate, two members appointed by the minority leader of the Senate, three members appointed by the Speaker of the House, and two members appointed by the minority leader of the House.
The bill has received notable bipartisan support: it is co-sponsored by two Republicans and two additional Democrats, including Sen. Chuck Schumer, D-N.Y., and Sen. Ben Luján, D-N.M.
“As China and other countries seek to exploit communications networks for surveillance and intellectual property theft, the U.S. needs a cohesive strategy for the safe deployment of next-generation wireless technologies,” said Sen. Roger Wicker, R-Miss.
South Dakota senator and Senate Republican minority whip John Thune also came out in support of the bill. “This bill would allow the United States to continue competing on the global stage, and it would help prepare the United States to lead the way in deploying next-generation technology, including 6G. I’ll continue to work on bipartisan solutions that will increase innovation and bolster the private sector’s ability to compete in this emerging space.”
The bill must now get through a general vote in the Senate, at which point it will need to also pass the House.
Gigi Sohn Nomination for FCC Advances Out of Commerce Committee on Party Lines
Nomination of Alvaro Bedoya to the FTC can also advance to the floor following a party-line vote.
WASHINGTON, March 4, 2022 – President Joe Biden’s nominee to the Federal Communications Commission Gigi Sohn saw her nomination advance out of the Senate Commerce Committee Thursday following a vote split along party lines.
Sohn, as well as Biden’s nominee to the Federal Trade Commission Alvaro Bedoya, did not receive the vote of a single Republican on the committee while receiving the support of all Democrats including more moderate senators such as Sen. Kyrsten Sinema, D-Ariz., allowing for their nominations to advance to a full vote on the Senate floor.
Republican ranking member of the committee Sen. Roger Wicker of Mississippi stated that on the FCC Sohn would have the appearance of conflicts of interest related to her involvement in past legal battles and cited her past recusals on retransmission consent as problematic.
The controversy is related to Sohn’s involvement with nonprofit streaming service Locast which attempted to make local broadcast network content available to the public for free, sparking copyright lawsuits.
Wicker stated that Bedoya was too divisive and not unifying enough to serve on the FTC, a trend of partisanship that he says is new to the agency.
Strong Democratic support for both nominees makes their confirmations in the Senate seem quite plausible. Should all Republicans vote against the nominations, the approval of all Democratic senators will be required in the deadlocked Senate so that the vice president may break vote ties in the nominees’ favors.
Both the FCC and FTC remain split along party lines, and the confirmations of Sohn and Bedoya would give Democrats the upper hand at the agencies.
The nominations’ advancements out of committee earned praise from telecom industry groups such as think tank New America, the National Association of Telecommunications Officers and Advisors, and intellectual property nonprofit Public Knowledge – the organization Sohn formerly headed.
Year In Review: Key Developments for Broadband’s Impact in the U.S.
This year saw a growing telehealth trend, federal digital inclusion efforts and greater attention to spectrum sharing.
WASHINGTON, December 29, 2021–High-speed internet access has never seemed more essential than in the days of another year of the COVID-19 pandemic.
And that’s why, for the third in a three-part review of 2021, Broadband Breakfast focuses on broadband’s impact in enabling benefits through expanded internet access.
Telehealth takes center stage
Because the pandemic is continually forcing closures and stay-at-home orders, the expansion of telehealth services has become a critical, normalized service this year as remote health care is a safer, more efficient way to deliver high-quality care.
Broadband service is now important to maintaining overall health––experts have defined broadband services as a social determinant of health. Expanding telemedicine across rural and Tribal communities remain barriers to better health outcomes for vulnerable populations.
The pandemic prompted Congress to extend waivers that allowed patients to take advantage of telehealth services. Experts say the waivers encouraged the growth of telehealth systems, and that investment in telehealth is necessary to improving them.
Broadband access and affordability often restrict vulnerable communities’ ability to take advantage of telehealth services. This year saw massive investments focused on funding telehealth subsidies for patients in need.
In December alone, the Federal Communications Commission announced more than $42.7 million in COVID-19 Telehealth Program awards for health care providers spending on telecommunications information services and devices. The awards also reimburse health care organizations for innovative ideas that connect patients to quality care with broadband.
For example, the Westchester County Health Care Corporation in Valhalla, New York, was awarded $1 million for the purchase of remote monitoring software and video equipment, which will allow for the creation of a “tele-ICU” for the provision of remote care for hospitalized patients.
In October, a Senate subcommittee heard testimony that permanent regulatory flexibility allowing free or subsidized telemedicine services for patients would have a positive impact on patient care. It may have a cost benefit too: FCC Commissioner Brendan Carr estimated that widespread telehealth availability could save the health care system $305 billion a year.
The FCC’s new Affordable Connectivity Fund
The Federal Communications Commission served as an accelerator to better connect communities during the pandemic through its Affordable Connectivity Program. As families and students struggled to stay connected to work and school during the pandemic, the FCC has taken historic steps to assist families can’t afford to pay for internet service and devices.
Originally established as the Emergency Broadband Benefit, the Affordable Connectivity Program is the nation’s largest broadband subsidy program to ever be enacted. The Emergency Broadband Benefit was replaced by the Affordable Connectivity Program after the passage of the Infrastructure Investment and Jobs Act in November.
The Affordable Connectivity Program transformed the Emergency Broadband Benefit into a long-term program that provides discounts for families to purchase internet service and devices. Households can also receive discounts to purchase a laptop, desktop computer, or tablet for their home.
The Affordable Connectivity Program enrollment period opens on December 31, 2021, allowing families to start the new year with the opportunity to receive new devices for the home. However, a long-standing challenge has been informing the community about these benefits. Policy experts agree that these benefit programs are not reaching the intended audience.
A November report showed that areas with low broadband adoption are less likely to enroll in the program. “If leaders want to connect the unconnected, in addition to low income groups, other programs will be needed. EBB isn’t targeting these low-adoption communities,” said Will Rinehart, senior fellow at the Center for Growth an Opportunity.
FCC Chairwoman Jessica Rosenworcel agreed on the need for emphasizing outreach. “There was no funding to help a lot of these non-profit and local organizations around the country get the word out [about the program],” Rosenworcel said during a September event hosted by the Internet Innovation Alliance about the broadband affordability divide. “And I know that it would get the word out faster if we had that opportunity.”
Digital equity and inclusion
The past year was significant for its focus on digital equity and inclusion. The closing of many public institutions because of the pandemic has forced lower-income communities into isolation without sufficient devices or technology to stay connected, digital inclusion experts say.
Organizations such as the National Digital Inclusion Association have decried a type of discrimination known as “digital redlining” in which internet service providers discriminate in broadband deployment, maintenance, upgrade, or delivery of service in lower-income neighborhoods. Because communities of color are more likely to have slower and less reliable internet service, policy leaders have been active in finding solutions.
To combat this alleged practice, Rep. Yvette Clark introduced the Anti-Digital Redlining Act on July 30. The bill finds that lower-income residents pay the same for DSL internet as fiber customers, while wealthier residents receive much better internet service. The text of the bill also acknowledges that disparities in internet access “impose significant costs” on the government to choose between “either offering non-digital means of interaction or excluding residents without access to high speed, reliable broadband access.”
If passed as federal law, the measure would require the FCC to ban digital redlining.
This year also saw the passage of digital inclusion-focused legislation as part of the recently-passed Infrastructure Investment and Jobs Act. The law allocated $2.75 billion to the Digital Equity Act, which establishes the federal definitions of digital inclusion and digital equity.
The Digital Equity Act’s two programs and three grant funds will supply money to the states in order to do digital equity work. For example, the Broadband Equity Access and Deployment program gives block grants to states for broadband infrastructure deployment and other digital inclusion activities.
Amy Huffman, policy director at the National Digital Inclusion Association, said that states are best prepared to promote digital equity for their residents. “The states are already in charge of so economic development workforce development health outcomes, etc. so they want the state to think holistically, about how they’re doing around digital equity will help them achieve their other goals.” By connecting all residents to quality devices and internet-enabled services, residents are better equipped to fully engage with the community and improve their quality of life.
Satellite broadband takes flight
Apart from the high-profile space launches this year, the broadband industry is both excited and skeptical about satellites playing a greater role.
In late 2020, the FCC voted to adopt rules making it easier for satellite providers to obtain licensing to deploy satellites faster. In February, Elon Musk’s SpaceX launched 120 Starlink broadband satellites on two February missions, bringing the total number of satellites to over 1,700.
Low Earth Orbit satellites, which can bring broadband to rural communities, could connect harder-to-reach communities faster than laying fiber. By May 2021, SpaceX announced it had over 500,000 orders for the Starlink service.
Other companies are also jumping into the satellite business: the FCC approved Boeing’s request to launch 132 satellites for its broadband internet network, and Amazon’s satellite imitative Project Kuiper partnered with Verizon in October to launch an internet service for underserved and unserved communities.
However, these massive investments didn’t come without controversy. Apart from concerns about Starlink’s capacity to deliver long-term, high quality service that complies with IIJA, public telecommunications policy leaders say the 12 GigaHertz (GHz) band, the portion of spectrum that Starlink uses for its services, should be shared with 5G operators to deliver internet to lower-income communities.
Research commissioned by RS Access in August concluded that the mid-band spectrum can be shared between 5G and satellite broadband operators and finding that the 12 GHz spectrum is “highly favorable for 5G,” and “can rapidly accelerate 5G deployment nationwide.”
Next year regulators and policymakers will continue the battle to determine who, if anyone, will have greater control over the 12 GHz band.
Will the ‘homework gap’ persist in a world of online education?
Last year’s initial COVID lockdown left many families unprepared and unconnected to devices or internet access and the “homework gap” persisted.
In fall 2021, many schools embraced a “hybrid” in-person, virtual schooling model. Around this time, Pew research found that lower-income parents were more likely to say their children did homework on a cellphone and could not complete homework because they did not have computer access at home.
Some students have been using public Wi-Fi because they could not connect reliably at home. The FCC’s Emergency Connectivity Fund was authorized to help close bring devices to students who lack them.
Originally launching in June as part of March’s American Rescue Plan Act, the FCC has committed $3.8 billion of the $7.17 billion program to provide funding for schools and libraries to buy equipment students to learn remotely.
The total amount committed to go to support 9,000 schools, 760 libraries, and 100 consortia for nearly 8.3 million connected devices and over 4.4 million broadband connections, the agency said last week in a press release. (See also Year in Review: Key Developments in Digital Infrastructure with Ramifications for Next Year.)
Last week, the FCC committed another $603 million in Emergency Connectivity funds to connect more than 1.4 million students across all 50 states.
- Carr ‘Surprised’ by RDOF Denials, ‘New Normal’ on Supply Chain, $68M for Student Connectivity
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- FCC Denies Funding for Two of the Biggest Winners of Rural Digital Opportunity Fund Money
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- Broadband Breakfast on August 17, 2022 – Summer of Broadband: Tennessee
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