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Starry Hosts First Earnings Call, Says its Model Positions it to Compete Against Larger Players

Starry CEO assured investors that Starry’s technology model allows them to compete with other more established providers.

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Photo of Staryy CEO Chet Kanojia, from Starry

WASHINGTON, May 12, 2022 – In its first earnings call since becoming a publicly-traded company, telecom company Starry Inc. reported continued profitability and a desire to expand its services.

Starry, which uses fixed-wireless technology for the last-mile with support from a fiber-based middle-mile, merged with special purpose acquisition company FirstMark Horizon Acquisition Corp to go public in March. Its founder and CEO Chet Kanojia said on the earnings call Thursday that Starry has the potential to be a disruptor.

“The opportunity in broadband is to be able to disrupt the sector with extremely low-cost technologies, and to be able to achieve scale with less investment compared to traditional approaches that have been used in the past,” Kanojia said.

“This is not a concept company – we have found investors willing to finance our approach,” Kanojia said. “However, the business ultimately will require more capital,” adding that last quarter, the average user consumed 574 gigabytes of downstream and a substantial amount of upstream.

Kanojia also emphasized that urban and dense suburban areas continue to make up the majority of Starry’s consumer base.

“In order to succeed as a service provider, we need to be able to match speed and capacity,” he added.

Kanojia also said that connecting a new customer to the network costs around $100, and this is over years of improving and refining the process in order to keep the cost down.

In addition to operating the infrastructure, Kanojia said that Starry owns it as well, which has allowed the company to cut down on supply chain interruptions and exercise more control over how the technology is implemented.

“The underlying economic model remains extremely healthy and unchanged,” Kanojia said. “We continue to see the potential for raising the profitability.

“This gives us a lot of confidence that the underlying economic model works as intended and reinforced our desire to expand.”

Chet Kanojia will be the guest on Broadband.Money’s Ask Me Anything! series on Friday, May 13, 2022, at 2:30 p.m. ET.

Reporter Ben Kahn is a graduate of University of Baltimore and the National Journalism Center. His work has appeared in Washington Jewish Week and The Center Square, among other publications. He he covered almost every beat at Broadband Breakfast.

Spectrum

Industry Dissent on Whether Spectrum Sharing is Sustainable

Experts disagree on the capabilities of spectrum sharing, particularly the CBRM model.

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Photo of Colleen King of Charter Communications, John Hunter of T-Mobile, and Matthew Hussey of Ericsson (left to right)

WASHINGTON, March 22, 2023 – Industry leaders disagreed on the capabilities of spectrum sharing and its future in the United States at a Federal Communications Bar Association event Wednesday. 

Dynamic spectrum sharing – a technology that allows for 4G, LTE, and 5G wireless to be used in the same frequency bands – is essential to a successful national spectrum strategy, said Jennifer McCarthy of Federated Wireless.  

Establishing a combination of access points for one frequency band can open its availability for all prospective users, she continued, touting the success of the Citizens Broadband Radio Service established by the Federal Communications Commission in 2012. 

CBRS is the spectrum in the 3.5 GHz to 3.7 GHz band which is shared through a three-tiered framework. Access to the spectrum is managed by a dynamic spectrum access system where incumbent users have protected access, priority access users enter through competitive auction, and general authorized access is given to a broad pool of users when not in use by others.  

Representative of T-Mobile, John Hunter, disagreed, claiming that dynamic spectrum sharing means there is less power available for technologies, particularly on higher frequencies that don’t propagate very far despite power disparities. As such, deploying the CBRS framework at scale across the country is not cost-feasible, he said. 

We should not conclude to share just for the sake of sharing, he said, particularly because it will decrease utility of the band so much that it will decline quality of networks down the line. “In many cases, sharing just outright won’t work,” said Hunter.  

Colleen King, vice president of regulatory affairs at Charter Communications, pushed against the argument that dynamic sharing’s lower power will stop providers from providing great service, claiming that it instead allows for more carriers to provide great service. In fact, the CBRS auction had 228 winning bids, 10 times the amount of other spectrum auctions, she said. 

The FCC’s Communications Marketplace Report showed that in one market where Verizon is using the CBRS framework, the company is providing “much faster speeds” than its other markets, King cited. Charter will use the CBRS system for its spectrum uses, she said. 

Panelists nevertheless agreed on the importance of maintaining US leadership in the spectrum space by developing a national spectrum strategy to address sharing issues. 

The panel followed considerable debate over spectrum allocation, sharing, and expansion. Earlier this week, industry leaders suggested that the allocation process be updated in preparation for future disputes. Additionally, debate continues over whether 5G operations can be shared on the 12 GHz spectrum with satellite service providers.  

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Spectrum

Experts Call for Spectrum Allocation Reform, Pointing to C-Band Clash Between Airlines and 5G

Panelists emphasized the need to allow more time for research and collaboration throughout the auction process.

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Screenshot of panelists at the ITIF event

WASHINGTON, March 20, 2023 — Although the wireless and aviation industries’ fight over mid-band spectrum has been largely resolved, regulators and experts from both industries agree that the allocation process should be updated in preparation for future disputes.

The challenge for regulators is to balance the “importance of more spectrum for the commercial industry to allow a critically important technology, 5G, to expand… against the equally important issue of, we can’t have airplanes falling out of the sky because their altimeters are being interfered with,” said Lawrence Strickling, former administrator at the NTIA, at an Information Technology & Innovation Foundation event on Monday.

The disagreement between the two industries peaked in January 2022, when the Federal Aviation Administration warned that the safety concerns surrounding major wireless carriers’ planned 5G rollout would lead to widespread flight delays and cancellations — causing an “economic calamity,” according to the leading airline industry association.

The airline industry’s concern was that 5G might interfere with radio altimeters, which provide critical elevation data for flight safety and navigation equipment, explained Jennifer Holder, director of aviation safety and regulatory affairs for Boeing, at the ITIF event.

“In the aviation industry, we don’t deal in ‘mights,’” Holder said. “You have to prove it’s safe.”

Wireless companies agreed to temporarily postpone deployment and work with aviation stakeholders to find a compromise. “We believe we have identified a path that will continue to enable aviation and 5G C-band wireless to safely co-exist,” Acting FAA Administrator Billy Nolen said in June.

Although that particular crisis was averted, many stakeholders agreed that the situation proved the need for an updated spectrum allocation process.

“Spectrum allocation works really, really well for the most part,” Strickling said. “But when you get into these really, really important issues that have severe consequences for different parties, it requires a little more coordination… at an interagency level to avoid the kind of controversy and disappointments that the altimeter controversy created.”

In addition to cooperation between multiple federal agencies, Strickling emphasized the importance of White House involvement with this type of challenge.

Mid-band spectrum remains a key part of innovation in the wireless industry, explained Tom Power, senior vice president and general counsel for wireless trade association CTIA. The C-band is sometimes nicknamed the “Goldilocks band” because it balances the advantages of the lower and higher bands to provide both range and speed, he said.

“It is really important for the nation in terms of the economy and productivity and jobs that we find opportunities, particularly in mid-band spectrum,” he added.

Panelists call for advance planning from both industry and government

Given the thoroughness of aviation standards processes, Holder emphasized the importance of the FAA anticipating emerging technologies rather than responding after problems arise.

However, she also called for updates to the Federal Communications Commission’s rulemaking and allocation procedures to allow more time for research and communication.

“Over the years, it does feel like we’ve had to play defense on spectrum auctions… It is incredibly challenging to evaluate whether or not you have a safety of flight issue in a 30 to 90 day time period,” Holder said.

Strickling agreed, saying that industry stakeholders should be given “as much advance notice as possible” about the potential allocations or reallocations of various spectrum bands.

Previous studies on interference have arrived at different results, Strickling added. Slowing down the auction process could allow more time for competing interests to come together in the design and execution of research.

But before changes to the allocation process are made, the FCC’s spectrum auction authority — which Congress failed to extend earlier in March — must be renewed, panelists agreed.

“This C-band issue has obviously been challenging, but it really is a small bump in the road compared to what we’re facing if we don’t restore spectrum auction authority,” Power said.

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WISP

Starry Group Files for Chapter 11 Bankruptcy

Starry said the bankruptcy will put it in a better position to continue offering service.

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Photo of Starry CEO Chet Kanojia

WASHINGTON, February 21, 2023 – Fixed wireless internet service provider Starry Group Holdings Inc. has filed for Chapter 11 bankruptcy, according to a Monday filing in the bankruptcy court of Delaware.

The petition shows the company has roughly $310 million in total debt, but assets that amount to just $270 million. It also listed having between 5,000 and 10,000 lenders.

The group will now enter into a restructuring to pay back the debt.

“Over the last several months, we’ve taken steps to conserve capital and reduce costs in order to put Starry in the best position to explore various financing paths for the company,” Chet Kanojia, Starry’s CEO, said in a press release Tuesday. “Our next step in this journey is to continue to strengthen our balance sheet through a Chapter 11 restructuring process.

“With the support of our lenders, we feel confident in our ability to successfully exit this process as a stronger company, well-positioned to continue delivering an affordable, high-quality broadband experience to our customers,” Kanojia added.

“The Restructuring Support Agreement provides us with the funding needed to continue operating as normal, through this restructuring process and as we guide the company to profitability,” he continued. “We have a strong and experienced team in place and look forward to moving through this process quickly so that we can continue expanding essential broadband access and #HappyInterneting to more communities across the country.”

Last year the company said it would be defaulting on all its winning bids from $9.2 billion Rural Digital Opportunity Fund of the Federal Communications Commission, of which $268 million went to the fixed wireless company for connectivity in at least nine states.

Kanojia said last year that the company’s business model puts it in a position to compete against larger players.

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