85. Several parties argue that the Verizon Wireless-SpectrumCo-Cox transaction increases concerns that Verizon Wireless will utilize devices using AWS-1 spectrum that lack interoperability (i.e., devices that operate only over a portion of the AWS-1 band spectrum).208 They argue that an
interoperability condition on the AWS-1 band will prevent Verizon Wireless from restricting the most innovative handsets to its own spectrum bands and will ensure that equipment for these bands remains open and available to competitors at reasonable prices.209 NTCH proposes a condition that Verizon 204
Public Knowledge Reply, WT Docket No. 12-175, at 3.
205
Joint Opposition at 65-66; see also Joint Opposition, WT Docket No. 12-175, at 12.
206
See Letter from Kathleen Grillo, Verizon, to Marlene H.Dortch, Secretary, FCC, filed Aug. 21, 2012. 207
See Reexamination of Roaming Obligations of Commercial Mobile Radio Service Providers and Other Providers of Mobile Data Services, WT Docket No. 05-265, Second Report and Order, 26 FCC Rcd 5411, 5419 ¶ 15
(2011)(“Data Roaming Order”), appeal filed, Cellco P’ship d/b/a Verizon v. FCC, Nos. 11-1135 & 11-1136 (D.C. Cir. May 13, 2011)(“the availability of data roaming arrangements can be critical to providers remaining
competitive in the mobile services marketplace”).
208
RCA Petition at 57 (“If granted, the Transactions will give Verizon a commanding position with respect to AWS spectrum, and the Commission must ensure that Verizon is prevented from restricting the best and most innovative handsets to its own spectrum bands and technologies.”); Public Knowledge Petition at 53 (“Verizon . . . would have such control over the AWS spectrum that it could control the equipment market”); NTCA Reply at 7-8 (“Small wireless providers . . . will be irreparably harmed if Verizon continues down a path of non-interoperability,
restricting the best and most innovate[sic] handsets to its own spectrum bands.”). See also, e.g., Letter from Michael Lazarus, Telecommunications Law Professionals PLLC, Counsel for RCA and ATN, to Marlene H. Dortch,
Secretary, FCC, WT Docket No. 12-4, filed June 22, 2012, at 5 (“The Commission must take action to ensure that Verizon does not abuse its near-monopoly power with respect to [the AWS B and F Blocks] to create a chipset that is limited only to the AWS bands used by Verizon”).
209
Wireless’s devices have full two-way voice and data functionality across the AWS-1 band in order to permit the use of AWS-1 to expand over the entire competitive landscape and to allow Verizon Wireless’s customers to roam on other networks when out of their home markets.210 RTG argues that approval of the Verizon Wireless-T-Mobile transaction would provide Verizon Wireless with greater incentive “to create a custom-made LTE band class” to limit LTE roaming and device interoperability.211
86. Some parties also request interoperability conditions related to the Lower 700 MHz band.212 RCA asks the Commission to require Verizon Wireless to commit to deploying mobile wireless services on its Lower 700 MHz A and B block spectrum in the near term to decrease its own warehousing of spectrum and “allow other providers to deploy on their own Lower 700 MHz A and B block
spectrum.”213
87. In response, Applicants contend that there is no transaction-specific evidence in the record to warrant an interoperability condition on the AWS-1 band.214 Applicants claim that there is no basis to impose Lower 700 MHz interoperability conditions because no licenses in that band are involved in any of the transactions and because Verizon Wireless has announced its intent to sell its Lower 700 MHz holdings.215 Moreover, the Applicants note that the Commission recently initiated a proceeding to address 700 MHz interoperability issues.216
88. Discussion. While we agree with commenters that a fragmentation of the AWS-1 spectrum band similar to what has occurred in the 700 MHz band may be a serious concern, there is simply no basis in the current record to conclude that, as a result of this transaction, such fragmentation is likely to occur. The only LTE Band Class defined for AWS-1 (Band 4) covers operations over the entire AWS-1 band.217 Therefore, manufacturers and providers building AWS-1 devices to the LTE
210NTCH Petition at 7-8.
211RTG Petition, WT Docket No. 12-175, at 6-7. 212
See, e.g., NTCH Petition at 7-8 (proposing as a condition that any device operated by Verizon Wireless on paired
spectrum in the Lower 700 MHz band must operate on all paired spectrum in the Lower 700 MHz band and to prohibit the design or procurement practices for 700 MHz equipment that impedes competition in that band or excludes access to A block spectrum in LTE wireless devices). See also NTCA Reply at 7-8. NTCH also proposes that at least 50 percent of Verizon Wireless’s LTE devices sold over the next two years must be operable across the entire 700 MHz band, including Lower 700 MHz spectrum, Upper 700 MHz spectrum, and the first responder band. NTCH Petition at 8.
213
RCA Petition at 57-58.
214
Joint Opposition, WT Docket No. 12-175, at 14.
215
Joint Opposition at 66; Letter from Adam D. Krinsky, Wilkinson Barker Knauer, LLP, Counsel for Verizon Wireless, to Marlene H. Dortch, Secretary, FCC, WT Docket No. 12-4, filed May 2, 2012 at 13 (“Verizon Wireless May 2, 2012 Ex Parte”).
216
Verizon Wireless May 2, 2012 Ex Parte at 13; see also Letter from John T. Scott, III, Counsel for Verizon Wireless, et al., to Marlene H. Dortch, Secretary, FCC, WT Docket No. 12-4, filed June 11, 2012 at 1.
217
Industry standards for Long-Term Evolution (LTE) wireless broadband technology are developed by the 3rd Generation Partnership Project (3GPP), a consensus-driven international partnership of industry-based
telecommunications standards bodies. 3GPP, established in 1998, is an industry-based group and it is not associated with any governmental agency. Its world-wide partners come from Asia, Europe, and North America. 3GPP’s many technical specification groups meet in various countries throughout the year to carry out the organization’s mission. See 3GPP – ABOUT 3GPP, http://www.3gpp.org/-About-3GPP.
specifications necessarily will be producing devices interoperable across the AWS-1 band. Verizon Wireless’s current proposal being considered by 3GPP to enable LTE carrier aggregation between AWS- 1 and 700 MHz Upper C block also includes the whole AWS-1 band,218and we are not aware of any proposal before 3GPP that would fragment the AWS-1 band. Nor are we aware of any manufacturers or operators seeking such specifications. We note that the AWS-1 band’s already mature ecosystem of broadband devices has a history of interoperability in other technologies. Nonetheless, the Commission encourages continued interoperability in the AWS-1 band, and we will continue to closely monitor the development of equipment and standards for services that use the AWS-1 band. The Commission
continues to believe that interoperability is an important aspect of future deployment of mobile broadband services, and will closely examine any actions taken that may have the potential to thwart interoperability that currently exists in the AWS-1 band.219
89. We also find that any issues of interoperability in the Lower 700 MHz band raised by commenters are not transaction-related. The interoperability issues in the Lower 700 MHz band long predate these transactions. Further, the Commission has already initiated a rulemaking proceeding earlier this year to address these issues on an industry-wide basis.220