Some limited progress has been made in the thorny landscape of the US 700MHz LTE band, with AT&T agreeing to support interoperability with smaller 4G operators as it completed the acquisition of new spectrum from Verizon Wireless.
The 700MHz band has seen nearly all the early LTE launches in the US, but it is a fragmented spectrum with no automatic roaming between the networks of Verizon, AT&T and a host of smaller operators. This has caused years of arguments, with the Competitive Carriers’ Association, which represents the smaller players, lobbying the FCC to mandate roaming. The small cellcos argue that their limited market weight means device makers are less willing to create handsets for their frequencies, and focus their efforts on AT&T’s and Verizon’s. For instance, the new iPhones support Band 17, which is unique to AT&T, but not Band 12, used by many tier two and three players like US Cellular and C Spire.
The situation arose as a result of the complex rules for the FCC’s Auction 73. This established the Upper 700MHz band as a national C Block of spectrum supported by Band 13 devices. This was won by Verizon, whose network does not interoperate with those of AT&T and other operators, all of which hold 700MHz spectrum in the Lower 700MHz band. Verizon has now sold its own lower band holdings to AT&T.
The lower band was fragmented because it was allocated regionally and divided into three blocks, A, B and C (plus D for public safety and guard bands). While the smaller operators effectively treated the whole lower band as a single entity (Band 12, whose devices support A, B and C blocks), AT&T kept the A block as a guard band against claimed interference from TV signals. That meant that its Band 17 devices (excluding the A block) were incompatible with the smaller operators’ networks, and vice versa.
In a step in the right direction, AT&T has agreed to close down its boutique Band 17 network, ending plans to keep the A block vacant and instead supporting generic Band 12 devices. The carrier said it would modify its 700MHz LTE network with a newly standardized software feature that will enable it to support the changed band plan.
But Verizon still has its own area of spectrum in Band 13 and has shown no signs of supporting roaming with Band 12 unless it is forced to ‘ something it has campaigned against, supported by some vendors, including Qualcomm, which wants to push multiband technology solutions like its own RF360, rather than government mandates.
Acting FCC chairwoman Mignon Clyburn praised the compromise solution, saying in a statement: ‘America’s mobile consumers have a reason to celebrate today: After many frustrating years, wireless carriers have finally reached a voluntary industry solution that will resolve the lack of interoperability in the Lower 700MHz band in the most efficient manner. This is a big win for consumers, especially in rural areas, who will see more competition and more choices. Also, by making it easier for small wireless carriers to compete, today’s interoperability solution will spur private investment, job creation, and the development of innovative new services and devices.’
Meanwhile, AT&T has gained additional 700MHz capacity, completing the purchase of lower B block licences from Verizon, which the latter is divesting as a condition of its spectrum deal with four cablecos in the AWS band. AT&T is paying $1.9bn for 39 licences covering 42m people in 18 states. In addition to the cash, Verizon got further AWS spectrum covering markets such as Los Angeles, Phoenix and Portland.
AT&T has been steadily building up its 700MHz reserves over the past couple of years, buying chunks from Cox Communications, Peoples Telephone Cooperative, 700MHz LLC and other smaller holders of localized licences