Freed from its recent acquisition attempt by AT&T, T-Mobile USA has come out swinging against what it sees as anti-competitive spectrum deals concocted by Verizon Wireless.
In a blog post late yesterday, T-Mobile USA’s director of government affairs for technology and engineering policy, Steve Sharkey, ripped into Verizon Wireless’ plans to acquire 1.7/2.1 GHz spectrum assets from a handful of cable operators.
“Verizon would have you believe its effort to purchase the cable companies’ advanced wireless services (AWS) licenses in the 1.7 GHz band is but a ‘run of the mill’ set of transactions that should be rubber-stamped by the FCC,” Sharkey wrote. “Not true. These deals are anything but routine and, if granted, would unduly tip the scales in favor of the largest wireless carrier at a critical juncture in the mobile broadband industry.”
Sharkey went on to refute claims by Verizon Wireless that the carrier’s current network is twice as efficient as T-Mobile USA in using spectrum. Sharkey noted that the Verizon Wireless claim was “pointless” as it looked at numbers on a nationwide scale rather than at a local level.
“Because spectrum holdings and market share vary dramatically on a market-by-market basis, any meaningful analysis must be done at that level,” Sharkey contended, adding that the Verizon Wireless analysis also included spectrum assets that T-Mobile USA did not yet have access to. Those assets would include the 1.7/2.1 GHz spectrum licenses T-Mobile USA gleaned from AT&T as part of a break-up fee.
In turn, Sharkey claims that T-Mobile USA’s own analysis shows that in “top” markets, the carrier is 50% more efficient in spectrum use than Verizon Wireless. The carrier cites its superiority in the nation’s five largest markets; eight of the top 10 markets; and 31 of the top 49 markets.
Sharkey also cites Verizon Wireless’ dominate position in holding spectrum licenses below 1 GHz compared with T-Mobile USA’s exclusive holdings in the 1.7/2.1 GHZ and 1.9 GHz band. Spectrum bands below 1 GHz are typically seen as more valuable for wireless communications due to superior propagation and in-building penetration characteristics.
Of course, T-Mobile USA’s main beef is that it would like to somehow work out a deal with the cable companies looking to offload their spectrum assets by either acquiring those licenses or partnering with those companies. T-Mobile USA announced earlier this year plans to re-jigger its network in order to begin rolling out LTE services. Those plans include re-farming spectrum in the 1.9 GHz band currently used for its 2G services for its 3G offering that is currently running in its 1.7/2.1 GHz licenses. The carrier is then planning to use its current 1.7/2.1 GHz licenses, bolstered by what it receives from AT&T, to rollout LTE services.
T-Mobile USA said the moves should provide it with 20 megahertz of spectrum covering 75% of the top 25 markets to offer LTE services.
A number of smaller operators and rural trade associations have come out in opposition to Verizon Wireless’ spectrum deals, citing the consolidation of spectrum assets in the hands of the nation’s largest wireless operator.
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