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Cox’s Wireless Deal with Verizon Dies, Apple Appeals Epic Games Case, AT&T’s Fiber Investment

AT&T invests in rural broadband, Cox Communications is unable to partner with Verizon on wireless, and Apple appeals its federal court injunction.

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Cox CEO Patrick Esser.

October 11, 2021 — Cox Communications has been told by a Delaware court Friday that it can’t partner with Verizon on a mobile services launch because the company has a contractual obligation with Sprint to launch services with T-Mobile.

Vice Chancellor Morgan Zurn ruled that in Cox’s 2017 patent dispute resolution, Cox made an enforceable agreement to use Sprint’s network if it decided to offer mobile wireless services.

According to reports, Cox was required to negotiate with Sprint but failed to do so and decided to pursue an agreement with Verizon instead. Analyst Roger Etner with Recon Analytics tweeted that T-Mobile is going back on its promise to the FCC and DOJ to be “friendly” toward mobile virtual network operators, or MVNOs. MVNOs are wireless providers that use the network infrastructure of another company to provide its services.

T-Mobile acquired Sprint in a deal that closed last year.

Apple files appeal in Epic Games case over payment options

Apple has filed a notice of appeal in its litigation with Epic Games over the court’s decision to allow alternate payment methods on its app store.

The injunction against Apple, set to go into effect on December 9, 2021, allows developers to add in-app links to payment websites on Apple products. Apple is also fighting a change that would allow developers to circumvent App store fees of 15 percent to 30 percent.

The original ruling, which forced Apple to allow mobile apps to provide alternate payment methods other than the app store, could change the future of the App store and mobile payment across the Apple ecosystem. According to Trystan Kosmynka, Apple’s senior director of app review, the change “will harm users, developers, and the iOS platform more generally” due to the lack of “thoughtful restrictions in place to protect consumers, developers, and the iOS platform” pointing to the number of details that would need to be clarified about how developers can receive payment on Apple products without the app store.

Despite this, the court ruled that Apple can keep Epic’s Fortnite game off its platform. Apple reaffirmed that it would keep Fornite off its platform until appeals in the litigation have been exhausted.

The Apple app store is one of Apple’s most profitable services. The store brings apple roughly $19 billion per year. More than 95 percent of its revenue comes from the top two percent of developers, and most of the app store’s billings come from gaming.

AT&T invests $40 million in rural Indiana

AT&T announced earlier this month a $39.6 million investment in a rural fiber deal to connect 20,000 Indiana residents.

The company was the winning competitor in the nearly $40 million public-private partnership in Vanderburgh County, Indiana.

AT&T plans to invest $29.7 million while the county will contribute $9.9 million. Building the fiber network should be completed in late 2023 once the partnership is finalized, the company said.

Vanderburg County Commissioner Cheryl Musgrave stated that public funding of the partnership will be made available through the American Rescue Plan Act, which provides emergency grants, lending, and investment to businesses that have been hit hard by COVID-19.

Some have called AT&T’s investment a possible “Fiber Land Grab.” Doug Dawson, president of telecommunications consulting firm Pots and Pans, finds AT&T’s announcement surprising as “it is a major reversal in direction for AT&T” because the company spent the last thirty years working its way out of rural America, capped by an announcement [that, in 2022], the company will no longer connect DSL customers.”

Local governments like Vanderburg County use American Rescue Plan Act to fund the introduction of fiber to their residents. The FCC has encouraged investment in rural broadband adoption from the public and private sector as recently as 2020 with its Rural Broadband Deployment Auction.

Broadband Roundup

FiberLight Buy, T-Mobile Shuts Down Older Networks, AT&T and Dish Lead US O-RAN Alliance

Digital investment firm Morrison & Co. said it agreed to acquire FiberLight.

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Photo of FiberLight CEO Christopher Rabii

July 5, 2022 – Morrison & Co, a digital investment firm, announced Thursday that it signed an agreement to acquire fiber infrastructure provider FiberLight, which will accelerate the providers’ network expansion, said a press release.

“With our existing backbone infrastructure and unmatched density across the markets we serve, FiberLight is well equipped to deploy a multitude of solutions to ensure our customers can meet their growing bandwidth needs,” said FiberLight CEO Christopher Rabii. “Morrison & Co is our ideal new partner to support our growth strategy due to its commitment of capital and resources and shared belief that fiber infrastructure is the key to bridging the digital divide and rapid expansion.”

FiberLight’s management team will continue to lead the business after the acquisition. The company comprises approximately 18,000 miles of fiber infrastructure in over 30 metropolitan areas in Texas and Northern Virginia.

The acquisition marks Morrison & Co’s first investment in the North American digital infrastructure market, read the press release.

T-Mobile shuts down 3G networks

T-Mobile shut down Sprint 4G networks and its own 3G networks Thursday and Friday to ensure that all its customers are moving to more advanced technologies and to free up resources and spectrum, said T-Mobile’s on its website.

T-Mobile officials estimated on an earnings call in April that around one million devices would be affected. AT&T suggest that its 3G shutdown affected 400,000 postpaid phones and cost operators $300 million. The company said affected customers with 3G devices have the option to upgrade to a new device at no cost.

This follows AT&T’s shutdown of its 3G network on February 22, and Verizon is scheduled to follow suit in December.

T-Mobile has yet to schedule a date to shut down its 2G network.

The company had been under pressure to delay the shut down of Sprint’s 3G network from Dish Network, which was the beneficiary of that company’s wireless assets in the deal that saw T-Mobile purchase Sprint.

AT&T and Dish lead US O-RAN Alliance

AT&T and Dish Network are leading the way in O-RAN Alliance activities in North America this year, said a new release from the organization Thursday.

The O-RAN Alliance is a world-wide community of operators, vendors and academic institutions operating in the Radio Access Network industry. Its mission is to direct the industry toward more intelligent, open, virtualized mobile networks through releasing RAN specifications and open software.

AT&T and Dish hosted O-RAN’s “PoCFest” testing efforts in four locations in the United States in coordination with several universities this year. “More than 20 unique O-RAN components were tested for conformance to O-RAN specifications,” said the release. (Open RAN specifications would open the market to many more telecom equipment vendors, rather than a small handful from proprietary providers.)

While Dish said it is building a 5G network using O-RAN specifications in the United States, AT&T said it has no plans to use the specifications in its US 5G network.

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Broadband Prices Decline, AT&T’s Fiber Build in Texas, Conexon Partners for Build in Georgia

A USTelecom report finds that despite high inflation, broadband prices have been declining.

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Screenshot of Jonathan Spalter, president and CEO of USTelecom – The Broadband Association

WASHINGTON, June 30, 2022 – A USTelecom report released Wednesday found that broadband prices have been declining, despite high inflation.

The association’s 2022 Broadband Pricing Index Report found that broadband pricing decreased even with significant inflation of an estimated 8 percent in the past year, the most popular broadband prices dropped by 14.7 percent, and the highest speed broadband prices dropped by 11.6 percent from 2021-2022.

“Broadband prices at all speeds have decreased in the last five years,” it said.

The analysis also found that broadband prices are half of what they used to be in 2015. The most popular broadband services decreased by 44.6 percent, while the fastest broadband services decreased their prices by 52.7 percent from 2015-2022.

Lastly, the report found that the “consumer value of broadband services has never been higher.” As providers offer faster speeds at lower prices, the overall value to customers has dramatically improved, it said.

“This is great news for American broadband consumers,” said Jonathan Spalter, president and CEO of USTelecom – The Broadband Association.

AT&T strikes deal in Amarillo, Texas for fiber project

AT&T struck a deal Wednesday with the city of Amarillo, Texas to extend its fiber reach.

A press release said the $24 million project in Amarillo will cover approximately 22,000 locations.

“The city of Amarillo broadband access plan is one of the more significant technological infrastructure advancements in city history,” said Amarillo mayor Ginger Nelson in the release.

It’s the latest partnership for AT&T, which is planning on reaching upwards of 60,000 locations via public-private partnerships in counties in Indiana, Kentucky and now Amarillo, Texas.

Conexon partners with Georgia electric company for broadband build

Georgia’s Ocmulgee Electric Membership Corporation partnered with internet service provider Conexon Connect on Tuesday to bring reliable, affordable, high-speed fiber broadband to rural Georgia.

The partnership will see the deployment of a network that spans 2,100 miles of fiber to the home for service to up to 8,000 members in centra Georgia, a press release said.

“I commend Ocmulgee EMC and Conexon for this exciting public-private partnership and their commitment to creating value for their communities,” said Governor Brian Kemp in a press release.

The project is estimated to take 2-4 years to complete and is set to start this September. The first customers expected to be connected in early 2023.

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Broadband Roundup

TikTok Data Concerns, Broadband Data Collection System, Internet Access on COVID-19 Mortality

FCC Commissioner Brendan Carr is requesting Apple and Google remove the TikTok app over data concerns.

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Photo of Brendan Carr

June 29, 2022 – Federal Communications Commissioner Brendan Carr called for Apple and Google to remove Beijing-based popular video-sharing application, TikTok, from their app stores.

The app is run by ByteDance, a company that is “beholden to the Communist Party of China and required by Chinese law to comply with the PRC’s surveillance demands,” read the June 24 letter to Apple CEO Tim Cook and Google CEO Sunder Pichai.

“It is clear that TikTok poses an unacceptable national security risk due to its extensive data harvesting being combined with Beijing’s apparently unchecked access to that sensitive data,” said Carr, calling it a wolf in sheep’s clothing. “At its core, TikTok functions as a sophisticated surveillance tool that harvests extensive amounts of personal and sensitive data” such as search histories, keystroke patterns and biometric identifies.”

Carr claims that TikTok’s pattern of conduct regarding persons in Beijing having access U.S. sensitive data violates policies that both companies require every app to adhere to as a condition of remaining available on the app stores. “I am requesting that you apply the plain text of your app store policies to TikTok and remove it from your app stores for failure to abide by those terms.”

TikTok has assured users that American’s data is being stored in the U.S. but, according to Carr, this statement “says nothing about where that data can be accessed from.”

FCC opens mapping data system for filers early 

The Federal Communications Commission released a public notice on Thursday announcing that filers of broadband availability data in its new maps may obtain early access of the system for registering filer information.

The filing window for the Broadband Data Collection opens June 30, but early access will enable users to register their entities in the system and become familiar with the system before that date, the FCC said.

“We are making this functionality available in advance of the opening of the filing window to enable filers to log in, register, and be ready to enter their availability data as early in the filing window as possible,” read the public notice.

The BDC program is said to help improve broadband mapping data to help funnel federal dollars to where broadband infrastructure is needed. Most fixed and mobile broadband providers will be required to file information in the system, but third parties and government entities are also encouraged.

Impact of internet access on COVID-19 mortality

New analysis released last week by private research university Tufts found that increased broadband access in the United States reduced COVID-19 mortality rates.

“Even after controlling for a host of other socioeconomic factors, a 1 percent increase in broadband access across the U.S. reduced COVID mortality by approximately 19 deaths per 100,000, all things equal,” read the report.

The study also found that the impact was felt more strongly in metro areas, where a 1 percent increase in broadband access reduced the deaths by 36 per 100,000.

By conducting a correlation analysis, Tuft researchers found that broadband access is negatively correlated with COVID mortality, even after controlling for other major factors such as health status, income, race and education.

The study only considered pre-vaccine number to account for inconsistencies.

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