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Carrier Wrap: AT&T closes on 700 MHz spectrum deal; SouthernLINC set for LTE

Editor’s Note: Wireless operators are a busy bunch, and as such RCR Wireless News will attempt to gather some of the important announcements that may slip through the cracks from the world’s largest carriers in a weekly wrap-up. Enjoy!

AT&T said it has closed on the $1.9 billion acquisition of 700 MHz spectrum licenses from Verizon Wireless covering 42 million people across 18 states. The deal included 39 lower B-Block licenses covering portions of California, Colorado, Florida, Idaho, Illinois, Louisiana, Montana, New Mexico, New York, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, Virginia, Washington and Wyoming.

As part of the deal, AT&T also transferred 1.7/2.1 GHz spectrum licenses to Verizon Wireless covering Phoenix; Los Angeles and Fresno, Calif.; Albuquerque, N.M.; and Portland, Ore.

The deal was initially announced in late January and finalized a stipulation on Verizon Wireless’ acquisition of 1.7/2.1 GHz (AWS) spectrum assets from a handful of cable operators placed on the carrier last year.

AT&T noted that deal complements its current B-Block spectrum holdings that in addition to its lower C-Block holdings are a core part of its ongoing LTE network rollout plans, while for Verizon Wireless it was able to pick up additional 1.7/2.1 GHz spectrum it’s now using to bolster its 700 MHz-based LTE network.

–Canada’s attempt to set up rules for the upcoming auction of 700 MHz spectrum ran into a new roadblock as established operator Bell Canada filed a lawsuit claiming current rules unfairly benefit new entrants.

According to a Reuters report, Bell Canada is claiming that Industry Canada does not have the right to require established operators provide roaming and infrastructure sharing for new entrants into the country’s wireless industry.

“Companies cannot be expected to bid hundreds of millions of dollars for the right to acquire and use spectrum, and many more hundreds of millions of dollars to develop network infrastructure, if the conditions of its use can be subject to arbitrary, unilateral change during the term of the license,” Bell wrote in the submission, according to Reuters.

Industry Canada earlier this year announced plans to increase competition in the country’s wireless space, which is dominated by Rogers, Telus and Bell Canada, with rules for the upcoming 700 MHz auction geared toward enticing new entrants. Industry Canada said it would apply spectrum caps to the auction in a move to ensure that at least four new entrants enter the wireless space. In addition, build out requirements for rural areas will also be in effect for those companies acquiring two blocks of paired spectrum. Those spectrum caps will place a limit on “prime” spectrum to incumbent operators that is expected to reserve those licenses for new entrants into the space.

The regulator also will require roaming agreements be allowed between new entrants and established operators as well as the possibility for enforced network sharing.

Those plans have been opposed by the established operators, as well as others, with Bell Canada coming out last month demanding a review of Industry Canada’s plans.

–Speaking of Canadian operators, Rogers Wireless rolled out its Share Everything plans this week, providing customers with data buckets that can be shared across up to 10 devices. The carrier notes that the device count is double that of its rivals.

The shared data plans are similar to those offered last year by U.S.-based carriers Verizon Wireless and AT&T Mobility.

The Rogers’ plans begin at $85 per month for 2 gigabytes of data (1 GB plus a promotional 1 GB) and one smartphone line of service. Customers can save $20 on that offer if they bring their own smartphone to the plan. Adding a new smartphone line to the plan is charged at $55 per month, or $35 per month if a customer brings their own device; $45 per month for a new “Smart Picks” messaging phone; $30 per month for a new line on a basic phone; and $10 per month for a new line using a tablet or wireless modem.

Data buckets ramp up to $105 per month for 6 GB (3 GB plus a promotional 3 GB); $120 for 6 GB with no promotional extra; $140 per month for 10 GB; and $160 per month for 15 GB. Overage is charged at $15 per gigabyte. All plans include unlimited Canada-wide calling and messaging.

Rogers Wireless rival Telus Mobility earlier this year unveiled shared data plans that charge $55 per month for a smartphone; $45 per month for a smartphone “lite,” which it considers “lower-tier smartphones such as the iPhone 4 and Samsung Galaxy Ace II X”; $35 per month for those needing only a SIM card; $20 per month for a tablet; and $10 per month for a customer bringing their own tablet. That pricing includes the unlimited voice and messaging part of the service. To add data, customers will pay an additional $15 per month for 250 megabytes; $30 for 1 gigabyte; $45 for 2 GB; $60 for 3 GB; $100 for 6 GB; and $150 for 10 GB.

–Regional wireless operator SouthernLINC announced plans to rollout LTE services beginning in 2015, with plans to have the entire network up and running by 2018. The carrier announced contracts with Ericsson and Cisco to handle the deployment.

While the new network is being built, SouthernLINC will continue operating its iDEN-based network serving portions of Florida, Georgia, Alabama and Mississippi. That network runs on recently re-banded 800 MHz spectrum and was reliant on Sprint’s iDEN network to provide nationwide roaming capabilities before Sprint shut down that network earlier this year. SouthernLINC controls less than 10 megahertz of spectrum, which the carrier had previously noted would be sufficient to support smaller LTE channels down to 1.4 megahertz.

SouthernLINC announced in May it had signed an agreement with mobile virtual network enabler Prepaid Wireless Wholesale to sell “nationwide high-speed data, voice and messaging services” within its current footprint across portions of the Southeast.The services will run across GSM and UMTS-based networks, with support for the offer coming from a dual-SIM phone.

–The Telecom Regulatory Authority of India this week recommended slashing the reserve price for wireless spectrum up for auction in an attempt to garner more interest in some markets. The move comes after an attempt earlier this year to auction spectrum in the 900 MHz and 1.8 GHz band attracted just one bidder, with the nation’s two largest operators – Bharti Airtel and Vodafone – refusing to participate.

Reports indicated that TRAI is looking to cut reserve pricing by up to 60% in some markets in order to generate bidding interest. Early last year the Supreme Court of India cancelled 122 2G spectrum licenses controversially handed out by former Telecom Minister A Raja in 2008. The move followed claims of bribery against government officials in dealing with licensees.

Additional carrier news can be found on the RCR Wireless News “Carriers” page.

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