Sticking to its point of being a good steward of spectrum and the need to meet increasing demand from consumers, Verizon Wireless responded to a request by the Federal Communications Commission for clarification on several points regarding the carrier’s attempt to acquire 1.7/2.1 GHz spectrum assets from a number of cable companies.
The FCC last week had asked Verizon Wireless and the cable companies looking to sell their AWS licenses to provide additional details on the proposed deal. The FCC had previously announced plans to combine the separate transaction into one timeline.
In its filing, Verizon Wireless defended the plan, explaining that is has a history of rationalizing its spectrum holdings, specifically pointing to previous deals where it has exchanged its A- and B-Block 700 MHz spectrum assets for licenses in higher spectrum bands.
Tackling perhaps the most contentious issue, Verizon Wireless reiterated that its offer to sell the 700 MHz licenses if it gains approval of the AWS spectrum sales shows that it has no interest in “warehousing” spectrum as has been claimed by opponents. However, if the AWS deals are not approved, the carrier said it would re-evaluate its position.
“Should the Commission not consent to the sale of substantially all the AWS licenses to Verizon Wireless, the company would have to re-assess all available options to meet its customers’ needs,” the carrier noted.
In explaining the reason why use of the lower 700 MHz bands would be a challenge for the carrier, Verizon Wireless noted that since it was already using its upper, C-Block 700 MHz spectrum for its LTE network it would require a complex installation of duplexers that operate below 1 GHz for compatibility between the spectrum bands.
“As a result, the AWS spectrum that is the subject of this proceeding is a better fit with Verizon Wireless’ existing spectrum holdings,” the carrier noted in its filing. “These device design issues are not faced by other lower A and B licensees or potential licensees that do not hold 700 MHz upper C-Block spectrum.”
Verizon Wireless also through some responsibility back onto the FCC, noting that potential interference issues between the lower 700 MHz licenses and television channel 51 is something that it expects the FCC will solve the issue. The carrier added that despite the interference concerns, a number of operators have made deals for those licenses. Verizon Wireless also noted conversations it was having with several parties in regards to those licenses, though names were redacted from the public filing.
Since gaining access to those 102 licenses for $4.7 billion, the carrier said it has gone through several steps in the process of using those licenses as it has until 2013 to make use of the licenses or have the license terms impacted. Those steps have included different phases of RF system design, finalizing deployment budgets, planning for site construction beginning last year and communicating with device makers on providing equipment compatible with the spectrum bands.
The Alliance for Broadband Competition, which along with a number of other parties has opposed the deals, noted in a statement:
“Despite its effort to cast itself as a good steward of its spectrum, Verizon’s math simply doesn’t add up. In the letter, Verizon fails to mention that the spectrum licenses it seeks to purchase from the cable companies cover the entire nation, while the lower MHz holdings provide only incomplete coverage. The spectrum Verizon is so willing to offload requires costly upgrades by 2013. The spectrum from the cable companies does not. The FCC must consider these transactions accordingly, which is to comprehensively assess their impact on the entire mobile industry, and not simply facilitate horse trading between the Twin Bells.”
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