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Verizon Second-Quarter Reflects Continued Fixed Wireless and Fiber Growth

Verizon executives said the company is continuing to look into lead-clad cable concerns.

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Photo of Hans Vestberg, CEO of Verizon

WASHINGTON, July 25, 2023 – During Verizon’s second quarter call Tuesday morning, CEO Hans Vestberg highlighted the company’s success with its combination of fixed wireless access and fiber optic network. 

Vestberg said that the customer satisfaction measures for wireless networks are higher than its cable networks. Broadband services are adding to the overall growth of the business, he said — “fixed wireless is here to stay.” 

The company added more than 400,000 net new broadband additions in fiber and fixed wireless access for three consecutive quarters and is on track to meet its goal of having 45 million fixed wireless customers by the end of 2025, it reported.  

The “demonstrates the momentum of our growth trajectory,” said Vestberg. “In broadband, the combination of fixed wireless access and fiber is winning as we capitalize on the unique strengths and capabilities of both technologies.” 

He added that Verizon’s leadership position will continue to be strengthened as the company rolls out and continues to innovate within the 5G network by finding ways to optimize the C-band spectrum, the band of spectrum most suited for 5G applications.  

The company noted that it is continuing to conduct its own internal and third-party investigation into the thousands of lead-sheathed cables that recently received press attention due to their potential to harm Americans. 

Verizon said it will take these concerns seriously, “communities we serve are the heart of everything we do,” said Vestberg. The company will take a “fact and science-based approach” in the assessment of the danger that lead-clad cables pose to communities.  

Tony Skiadas, chief financial officer, said that Verizon’s lead cables do not run into homes and have a low probability of lead exposure to residents when not disturbed. The company refused to present an estimated cost for removal of the cables, saying that there is “no meaningful way” to estimate the cost to the company and that any such estimate would not be useful. 

The company’s total revenue was $32.6 billion, down 3.5 percent from Q2 2022. The company added 2.3 million postpaid wireless additions in the quarter, up 2 percent year over year, for a total retail subscriber base of roughly 114 million. The company in the quarter had 54,000 fiber internet net additions, an increase from 30,000 in Q2 2022. It had net additions of 251,000 for fixed wireless access, with only 168 in Q2 2022. It has a total of 8.4 million broadband subscriptions, a 1 million increase from last year.  

Teralyn Whipple, who joined Broadband Breakfast in 2022, studied marketing at Brigham Young University. She has reported extensively on broadband infrastructure, investments and deployment. She has also headed marketing campaigns for several small companies.

5G

Rural Mobile Providers Push FCC to Alter 5G Fund Model

If carrier receiving legacy federal funds lose at auction, they could leave areas ‘stranded,’ providers say.

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Screenshot of Carri Bennet, RWA's general counsel

WASHINGTON, September 14, 2023 – Rural mobile providers are urging the Federal Communications Commission to consider an alternative to the reverse auction funding model the agency proposed for a future 5G fund.

The fund has been in limbo since 2020 due to mapping issues. It makes $9 billion available for 5G mobile broadband infrastructure in areas unlikely to be served without subsidies.

With access to newer, granular data on mobile broadband coverage in the U.S., the FCC released on August 31 a notice proposing updates to the program’s methodologies for defining areas eligible for funding and seeking comment on potential new provisions like extending support to Puerto Rico and the Virgin Islands. The proposal is slated to be discussed at the agency’s open meeting on September 21. 

Ahead of that discussion, the Rural Wireless Association has met with FCC officials five times in the last month to reiterate the same concerns over the program’s reverse auction model. Under this procedure, providers would compete to develop the cheapest cost structure for serving an area with the minimum required speeds – at least 35 Mbps upload and 3 Mbps download in the case of the 5G Fund.

Rural providers are concerned because some areas served by carriers receiving support from legacy funding programs like the Mobility Fund will be eligible for auction. If those carriers lose at auction, the RWA says, the reduction in federal funds might make them unable to continue operating their infrastructure and leave other areas covered by their networks without service.

“There is no ‘safety valve’ put in place that would protect these networks built with federal dollars and maintained by legacy support mobile carriers,” the association wrote in an ex parte filing on Wednesday.

The RWA has proposed the commission seek comment on allowing these providers to opt out of the reverse auction if they are an area’s sole mobile carrier. In such a scenario, the group also wants the FCC to consider subsidizing 5G upgrades based on predicted costs.

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Satellite

Satellites Essential to Bridging Global Digital Divide, Says Provider

Satellites can bring broadband to communities that terrestrial networks can’t reach.

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Photo of Michele Di Paolo, director of business development and product lifecycle management at SpaceBridge.

WASHINGTON, August 31, 2023 – Satellites are essential to bridging the global digital divide and connecting unserved regions and countries, an expert said on Thursday.

Satellites can be used to bring responsive broadband connections to nations without widely available internet access, an element of the United Nations’ plan to eliminate poverty, said Michele Di Paolo, director of business development and product lifecycle management at satellite provider SpaceBridge.

“It’s something that can’t be overstated,” he said at an event hosted by Via Satellite magazine. “It’s a very important part of satellite’s benefits.”

These connections allow communities to access banking, healthcare, and education services that would otherwise never have been available in their areas, Di Paulo said.

He pointed to villages he worked with in Kenya and Nigeria that were too far from city centers to access their ground-based networks. Healthcare centers struggled to run applications properly on outdated 2G connections, he said.

New satellites enabled them to access broadband connections and function normally, as well as add residents to national registries and arrange consultations with specialists for people who need advanced treatment.

Satellites are also being used to connect the most remote regions of Canada. Subsidized by Canadian broadband expansion initiatives, satellites provide the country’s sparsely populated Nunavut territory with connections in excess of 15 Gbps, according to Di Paulo.

“This is really bridging the divide between the urbans and the ultra-rurals,” Di Paulo said. “It’s going to be a game-changer for them.

In March, the Federal Communications Commission proposed a framework for allowing satellite operators to collaborate with terrestrial networks to supplement mobile broadband connections.

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Spectrum

CTIA Report Finds Military Systems Can Coexist with 5G in 3 GHz Band

The lower 3 GHz spectrum can be made available for full power wireless based on successful deployment in foreign countries.

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Photo of Meredith Baker of CTIA

WASHINGTON, August 15, 2023 – Research commissioned by the wireless trade association CTIA shows that U.S. military systems successfully coexist with full power 5G networks in the lower 3 gigahertz band in over 30 countries. 

The research shows that at least 150 megahertz of spectrum in the lower 3 GHz band can be made available for exclusive, full-power, licensed commercial use in the United States while protecting key military radar and systems. 

“The best evidence that 5G can co-exist with the Pentagon’s operations is what is happening around the globe in allied nations,” said Meredith Baker, CTIA president and CEO. “These real-world examples demonstrate a clear path forward to make available at least 150 megahertz of lower 3 GHz spectrum for full power 5G services while safeguarding the military systems protecting Americans.” 

According to the report, more than 50 countries, including several U.S. allies, operate full power 5G networks in the lower 3 GHz band and 20 more countries are expected to join them in the coming years. 

“Throughout Asia, nearly 20 countries have deployed in the lower 3 GHz band, with several demonstrating successful coexistence between 5G and U.S. military radar systems,” read the report. Japan reportedly features several U.S. radar systems amid extensive 5G deployments with a well-established host nation agreement that coordinates with the U.S. military to ensure systems do not interfere. Other countries include South Korea, Taiwan and the Philippines. 

The CTIA also cites studies that show how 5G operates today alongside the same Department of Defense systems that are used domestically, which highlights that 5G can operate in the 3.3-3.45 GHz band in the U.S. while fully preserving national security, read the press release. 

According to the report, the real-world evidence demonstrates how proven coordination methods are “already facilitating simultaneous use of the band by 5G and military radars.” It said that coordination techniques – such as retuning, compression, and frequency coordination – provide assurance that 5G networks can be deployed in the U.S. at full power in lower 3 GHz spectrum without harmful government interference. 

“It is well-established that the U.S. needs additional commercial mid-band spectrum to meet increasing consumer demands for wireless data, enhance our national security and secure our leadership of the innovations and industries of the future,” said Baker. “We should ensure U.S. policy promotes 5G deployment in the United States in a manner consistent with how spectrum is being used in the rest of the world.” 

“The clear trend of growing commercial use of the lower 3 GHz band internationally, as well as the actual use of 5G near military bases around the globe, should be fully reflected in the Administration and Congress’s evaluation of future commercial access to the lower 3 GHz band,” suggested the support.  

It added that “innovation unlocked by high capacity 5G is expected to generate economic growth of up to $1.5 trillion in GDP and 4.5 additional jobs by 2030.”  

A global economics consultancy Brattle Group report in April found that the U.S. needs 400 MHz of full power, licensed spectrum in the next five years to meet projected demand. It found that the deficit will grow by more than 3 times to 1,400 MHz by 2032 to keep up with expected consumer demand.  

“Commercial access in the lower 3 GHz band would help address this shortfall, while also helping to ensure that American consumers benefit from the economies of scale resulting from using internationally harmonized spectrum bands,” read CTIA’s press report. 

“Lower 3 GHz band is a critical component of the spectrum pipeline needed to fuel the growth of 5G, to the benefit of U.S. consumers, enterprises, and government agencies, including the DoD,” read the report. 

The report follows a coalition letter last week in which more than a dozen public interest groups urged the Federal Communications Commission to finalize key issues to free up the 6 GHz band for Wi-Fi use. Experts have called for better spectrum regulation and innovation to coordinate better spectrum sharing between commercial use and federal agencies.  

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