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Verizon's 700MHz spectrum sale criticized by T-Mobile's CEO, Philipp Humm

Posted: , by Alan F.

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Verizon's 700MHz spectrum sale criticized by T-Mobile's CEO, Philipp Humm
It might be fresh in your memory what we told you late last week about Verizon's 700MHz spectrum sale. In order to appease the mighty DOJ and FCC gods, Big Red plans on sacrificing its 700MHz spectrum, both "A" and "B" licenses. You might wonder why Verizon would sell spectrum that is used for its LTE service and covers some major metro areas. The answer is, by conducting this open sale, the carrier hopes to gain approval from regulators to purchase AWS licenses from a trio of cable firms known as Spectrum Co. (made up of  Comcast, Time Warner Cable, and Bright House Networks), Cox and Leap Wireless. Verizon even mentioned in its press release that the sale of its 700MHz spectrum is contingent on the closing of Verizon's AWS deal.

"It would make no sense, and would be inconsistent with the commission’s charge to ensure that spectrum transfers serve the public interest, to allow Verizon to acquire additional AWS licenses, especially at this time of an industry wide spectrum crunch"-Philipp Humm, CEO, T-Mobile
There is at least one industry executive not happy about this deal and that is Philipp Humm, the CEO of T-Mobile. Humm is not pleased with the sale of Verizon's 700MHz "A" and "B" licenses and the carrier's purchase of the AWS spectrum. Last week, Humm and some other wireless chieftains met with Rick Kaplan, the head of the FCC’s wireless bureau and Humm pointed out that Verizon hasn't used its AWS spectrum in over 6 years. The T-Mobile CEO said it wouldn't make sense and would go against the position of the  agency to allow Verizon to gather more AWS spectrum, especially since it would hurt the LTE deployment of other carriers.

Perhaps T-Mobile is a bit upset that it was unable to get the DOJ and FCC to sign off on its purchase by AT&T. It should be interesting to see how the FCC rules in this case, and how it justifies its decision. Verizon has already told the FCC that its LTE network will be maxed out by 2015 if it doesn't make the AWS purchase. T-Mobile plans on using its own AWS spectrum to deploy an LTE network next year. Humm says that the 700MHz spectrum offered for sale by Verizon faces interference from nearby high-powered broadcasters, and lack of equipment and interoperability with the rest of the 700 MHz band hinting that it is not an even swap for the AWS spectrum Verizon wishes to purchase.

source: FierceWireless

14 Comments
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posted on 23 Apr 2012, 18:56 9

1. oldmandaddy (Posts: 64; Member since: 01 May 2010)


Cry baby cry ! . Invest more money to up grade in to the network and stop crying.

posted on 23 Apr 2012, 19:20 8

2. J-LoTheGreat (Posts: 32; Member since: 07 Oct 2011)


Verizon = Good Business

TMobile = ****Blockers

WTF is this "If we can't have it, no one should" business model? Be smarter with your business and perhaps you wouldn't need to cry and interfere with other carriers

posted on 23 Apr 2012, 20:41 3

3. Jarahawk (Posts: 43; Member since: 04 Dec 2011)


Verizon is pulling the same punk move AT&T tried. They do NOT even need the AWS spectrum. T-Mobile is already using AWS and covets that spectrum so of course Verizon is going to block them from acquiring it. As Humm pointed out, Verizon has no devices which use AWS. Use what you have and then get back to us, Red.

posted on 23 Apr 2012, 21:14 3

4. networkdood (Posts: 6282; Member since: 31 Mar 2010)


It seems like the FCC, Justice Dept. and the big 4 carriers are at a 'Mexican' standoff.
No one is willing to compromise - at this rate, nothing will ever get done - no resolution in sight - like how the government does business.

posted on 23 Apr 2012, 21:18

5. corporateJP (Posts: 1622; Member since: 28 Nov 2009)


Honestly, the more I read about this, the less any of it makes sense.

I take it the AWS bands for sale have more coverage than Verizon's current spectrum? The mapping is a bit confusing.

I thought Verizon's current LTE spectrum was as "premium" as it gets?

So, if this deal does go through, what happens to the people currently using LTE devices on Verizon's network? A forced device swap? Surely what's in the consumer's hands now will not work on the other spectrum.

posted on 23 Apr 2012, 21:24 6

6. networkdood (Posts: 6282; Member since: 31 Mar 2010)


Why not just make a phone that can work on ANY spectrum?

posted on 23 Apr 2012, 21:32 5

8. corporateJP (Posts: 1622; Member since: 28 Nov 2009)


That, sir, is something I fully support.

posted on 25 Apr 2012, 04:10

14. Borrie69 (Posts: 22; Member since: 14 Jan 2012)


they do have that, all that it requires is a duel radio. most devices nowadays have the hardware to support most spectrum. As much as i hate apple with a passion i will say that their 3rd Gablet (*** tablet) has the hardware to run on Verison and AT&T. The Galaxy Note also has the hardware, if you have the hardware then the software is the easiest part. Of course the software requires some knowledge about electronics and the ins/outs of an opperating system. That right there knocks out most, if not all, apple users. lol

posted on 23 Apr 2012, 21:25

7. networkdood (Posts: 6282; Member since: 31 Mar 2010)


T-mobile's reaction is a bit ho HUMM.....

posted on 23 Apr 2012, 21:33

9. corporateJP (Posts: 1622; Member since: 28 Nov 2009)


Oh...I see what you did there.

LOL!

posted on 23 Apr 2012, 21:38

10. akhi216 (Posts: 61; Member since: 01 May 2011)


At this point, D0uche Telekom is just gonna cry foul every time Big Red does anything. Big Red could flush a toilet and D0uche Telekom would cry about water being wasted.

posted on 24 Apr 2012, 13:36

11. Forsaken77 (Posts: 548; Member since: 09 Jun 2011)


I don't think that's the case here because Verizon supported the sale of Tmobile to AT&T. Any time there's precious spectrum trading hands, someone is gonna complain. Just how Sprint bitched 24/7 on the sale of Tmobile.

As far as Verizons customers that use the 700mhz bands now... I believe Verizon LTE handsets have 2 different spectrum bands in them; a high band and a low band. So the phones will just switch to using the high band frequency once the low band is gone.

posted on 24 Apr 2012, 17:41

12. master0fursinz (Posts: 104; Member since: 26 Apr 2010)


I don't understand how Humm says vzw is not using aws for anything; when they might be using it to test things. And they didnt mind AT&T-mobile merge. It seems like he's mad at the FCC for allowing Big Red to work out network shortages for the future and you know how bad VZW harps on "Best Reliable Network". Companies need to stop complaining and work on upgrading networks to future proof themselves for all the future gadgets to come. Pretty soon we are going to have smart phones that attach to battery packs on your back to perform all the functions of life to power them.

posted on 24 Apr 2012, 18:13 1

13. panther_911 (Posts: 2; Member since: 26 Mar 2012)


So heres how it plays folks..
Verizon is willing to give up useless 700mhz freq (ie-interfered with by more powerfull "approved" technology services) as a mea culpa to gaining access to AWS freqs to corner the LTE market..
Is that #1 - because they are such a great 'value provider' for the consumer?
or #2 - maybe we are all just morons who cannot understand that monoplies are not good for consumers?

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