IEEE Telecom and Networking Newsletter- Special Wireless Hot Topics Issue
This issue of the newsletter is dedicated to "hot off the press" wireless news.
Our next issue will review the Cisco (C-Scape) Analyst conference on Dec 11-12th.
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Big Bidding Battle Shapes Up for "Beachfront" Spectrum
IN A MATTER OF WEEKS, THE BALANCE OF POWER in the wireless industry could shift dramatically. Expect both AT&T and Verizon Wireless to do everything they can to block that shift. The key event: the Federal Communication Commission's auction of 700-megahertz spectrum.
Avoid this subject at your peril: This just might be the biggest auction of anything anyone has ever held, with the potential to change the course of history for every player in the communications-services business.
The spectrum, which was previously used for UHF and VHF television, happens to be ideal for wireless-broadband applications. It easily penetrates walls, and you could use it for voice, data or video -- which means it could offer new competition for cell phones, for DSL and cable modems, and for cable- and satellite-TV service. Companies interested in bidding must register by Monday, and two weeks later the FCC releases the names of the applicants. The auction begins on Jan. 24 and will likely conclude sometime in March.
The two most interesting spectrum slices are the C and D blocks. The C block, which includes 22 MHz of bandwidth, will likely be acquired by a single bidder (it actually consists of 12 regional licenses). Thanks to some heavy government lobbying by Google (GOOG), the winner of the C block must provide open access to outside developers. The allure is that the C block offers enough spectrum to build a nationwide broadband network; the minimum bid for the group of licenses is $4.6 billion. The D block, meanwhile, is being offered as a single national license, providing 10 MHz of spectrum plus access to another 12 MHz, which must be shared for public-safety applications.
Google has pledged to bid on the C block (see article below). But there is a growing consensus on the Street that while Google will bid, it doesn't want to win. UBS Internet analyst Benjamin Schachter last week asserted in a research note that Google would rather not have to operate its own network, preferring "to partner as an ad monetization/software platform." JRPG's Townsend notes that, under the auction rules, if no bidders meet the required minimum for the C Block, the spectrum will be re-auctioned without the open-access provision. He says Google is participating to make sure at least one bidder meets or exceeds the minimum.
Google confirms plans to bid on wireless spectrum
Google Inc. is preparing to bid on some of the nation's airwaves in an upcoming government auction, carrying through on a pledge that could make the Internet titan a major mobile phone and high-speed Internet carrier.
Editorial comment
: Even though Google says it is bidding alone, if it does win the C block of spectrum, it will likely outsource the entire network build out to a wireless network provider. Alternatively, they may submit a minimum bid, with no intention of winning, just to appease the FCC which granted them "open applications and devices" for the C block.
Verizon To Open Its Wireless Network
Verizon Wireless said yesterday that it would allow customers to use any compatible device or software on its network, responding to growing pressure on the wireless industry to give people more control over how they use their phones. Consumer groups, federal regulators and software developers have called on wireless carriers to open their networks to more devices and applications, a departure from the current business model in which carriers largely decide which phones and features will be available to customers.
Information Week
: Any device, any application sounds impressive, but skeptics see a play for new spectrum.
NY Times Op Ed
: A Cellular Sea Change
Will wireless carriers really open their networks? AT&T chief scoffs at move by Verizon while admitting that shift is inevitable
AT&T CEO Randall Stephenson scoffed at Verizon's opening up its wireless network, saying he thought the news was "overblown" because the industry is already heading that way. "We are probably one of the most open networks in the world," Stephenson said in an interview with Forbes' Quentin Hardy at a Churchill Club dinner in Santa Clara, CA.
Verizon Wireless Selects LTE For Its 4G Network
Verizon Wireless said this week it will build a next-generation high-speed wireless network based on Long Term Evolution (LTE) technology. Trials are expected to begin next year. In September, Verizon and Vodafone announced they would move to for their next-gen networks. (Britain's Vodafone owns 45 percent of Verizon Wireless.)
Verizon currently uses CDMA technology for voice and mostly EV-DO for data (both Rev. 0 and Rev. A). LTE is a 4G competitor to WiMAX and CDMA2000.
By electing to go with LTE, the two companies aim to build a global, common access platform that is compatible with the existing technologies of both companies, Reuteers reported. As a result, customers of Verizon Wireless and Vodafone Group will be able to roam more easily on the networks of both. Currently, the two use incompatible network technologies.
LTE is seen as an upgrade of GSM, the most widely used mobile technology. As a result, it may be a less expensive option than the follow-up to Qualcomm's CDMA standard Verizon currently employs.
Editorial Comment: While not unexpected, this is another blow for mobile WiMAX use in the U.S. We are left with only two U.S. based WiMAX carriers- Sprint and Clearwire, who have terminated their roaming and build out agreements.
Sprint Is Said to Reject Offer by Investors and SK Telecom
Sprint Nextel has rejected an offer from Providence Equity Partners and SK Telecom (largest wireless carrier in South Korea) to replace management and invest $5 billion in the company, according to people apprised of the situation. Apparently, Sprint did not want to appoint Timothy M. Donahue, the company’s former executive chairman, to a key leadership position within the company.
Motorola chief Zander yields to investor pressure and steps down
Ed Zander, the embattled chief executive of Motorola, has stepped down as the company struggled to contend with a slump in market share. Mr Zander, who rode a revival of Motorola through the launch of the Razr mobile phone before the company again faltered, has been under pressure from shareholders, including Carl Icahn, the billionaire activist investor, to resign for almost a year.
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The author solicits comments, feedback (especially positive), suggestions, and even critiques.
All the best
alan