Recently, Sprint CFO Joe Euteneuer had strong words about the company’s need for future spectrum. At the J.P. Morgan Global Technology, Media and Telecom Conference, Euteneuer said the major carrier doesn’t necessarily need to participate in next year’s 600 MHz broadcast incentive wireless spectrum auction. Now, Sprint CEO Marcelo Claure, is weighing in on the subject, hoping to clarify Sprint’s stance on their need to participate in the auction.
While Enteneuer made it appear that Sprint is quite comfortable working with the spectrum they already have, Claure was quick to point out that he believes there are major opportunities available in the low-band spectrum auction.
“As it relates to the 600 MHz spectrum option, we all know it’s an opportunity – once-in-life opportunity to acquire low-banded spectrum and a critical input for cost-effective deployment of wide area coverage.” Claure said in a recent earnings call. “So to us, it’s important to understand what are the auction rules going to be to make sure that smaller carriers like us have a fair opportunity to acquire this competitive input.”
This comes after Euteneuer said, “I think if you would have asked that question two years ago, people would have said … maybe you need to do something more for low band,” he explained. “But today, no one that we know has the Wi-Fi layer out there, knowing that every building out there has Wi-Fi whether you’re in your home or in your office and given the 800 now will be complete nationwide, it really gives you a pause to say ‘do you really need something?’ ”
Euteneuer said the rationale for his comments is that by next year, Sprint expects to already have the majority of its 800 MHz and 2.5 GHz network largely built out and is also looking at Wi-Fi to give its network more capacity. He believes Sprint’s 2×20 MHz carrier aggregation in the 2.5 GHz band is also a key part of the company’s improving LTE network.
But while Sprint is not sure whether it needs to compete in the auction, it has been trying to impact it, teaming up with T-Mobile US and a few other companies to try to get new rules implemented so that smaller carriers can compete with Verizon Wireless and AT&T Mobility.
“As you know, AT&T and Verizon currently control over 75% of the old low-band spectrum,” Claure said. “We’re looking at it every day, want to make sure that the rules are right and we want to make sure that we’re keeping the future band as clear of remaining TV stations as possible.”
Claure even met with FCC Chairman Thomas Wheeler to discuss the importance of the low-band spectrum and the need to keep the auction competitive.
In a letter to Marlene H. Dortch, Secretary Federal Communications Commission, Vonya McCann, Sprint SVP of government affairs said, “Mr. Claure discussed the importance of low-band spectrum to customer satisfaction and the need to ensure that competitive carriers have access to sufficient spectrum to deliver the services customers demand. He encouraged the FCC to adopt auction rules that would give competitive carriers a fair opportunity to compete for low-band spectrum and that can be deployed widely and without significant obstacles to effective use.”
