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Spectrum Shockwaves(Multichannel News Via Acquire Media NewsEdge) The war among wireless carriers has gained new intensity with cable operators getting caught up in the melee. Sprint Nextel on Dec. 19 sued Comcast, Time Warner Cable, Cox Communications and Cable One, alleging that the cable companies are infringing 12 patents related to transmitting voice calls over Internet-protocol networks. That came just 17 days after Comcast, TWC and Bright House Networks reached deals with Verizon Wireless a major Sprint competitor under which the MSOs propose to resell the carrier’s products and services, and the cable operators agreed to sell Advanced Wireless Services spectrum licenses to the carrier for $3.6 billion (see “Mobile Mashup,” Dec. 12, 2011, page 14). Cox reached a similar agreement with Verizon Wireless on Dec. 16. Meanwhile, the Department of Justice antitrust division said it is examining Verizon Wireless’ pacts with the MSOs. “We’re looking at the proposed transaction,” DOJ deputy director of public affairs Gina Talamona said, declining to comment further. Verizon Communications spokesman Ed McFadden said the company was assuming that “it’s the standard antitrust review.” Verizon Wireless, the largest mobile carrier in the U.S., is a joint venture of Verizon and the U.K.’s Vodafone. Also last month, Verizon Wireless and the cable companies applied to the FCC for permission to transfer the licenses, arguing that the regulator’s review should be expedient and limited since they said there are no anticompetitive effects. They said the spectrum transfers “comply with all commission rules, require no waivers, and will not result in any violation of the Communications Act or any other applicable statutory provision.” T-MOBILE DEAL SCRAPPEDOn another front, AT&T on Dec. 19 abandoned its $39 billion bid to acquire T-Mobile USA, in the face of opposition from the Federal Communications Commission and DOJ. But three days later, the FCC approved AT&T’s proposed $1.925 billion purchase of spectrum, covering about 300 million people in the U.S., from Qualcomm, which had tried unsuccessfully to deliver a mobile TV service in the 700-MHz band. Wireless operators are battling to grab more spectrum, given the crushing demand for bandwidth expected over the next few years. Mobile Internet data traffic will increase at a 92% compound annual growth rate from 2010 to 2015, to 6.3 Exabytes (6.3 billion Gigabytes) per month globally, according to Cisco Systems’ 2010-15 Visual Networking Index Forecast. “Customers are going to use more and more data, and carriers are going to need more and more spectrum,” Jeff Kagan, an independent technology analyst based in Atlanta, said. The availability of spectrum “is going to be a problem going forward.” In terms of spectrum holdings, Sprint trails dominant leaders AT&T and Verizon Wireless, according to an analysis by Sanford Bernstein research. Sprint has access to 52.5 MHz of nationwide spectrum, compared with 81.1 MHz for AT&T and 104.9 MHz for Verizon Wireless (weighted by population, and assuming the MSOs’ AWS deals with Verizon Wireless are approved). Clearwire, the mobile-broadband provider that is majority- owned by Sprint, has 133.2 MHz of spectrum nationwide, but the spectrum is of lower quality than that of the incumbent providers, according to Bernstein analysts. Last week, Sprint updated its Long Term Evolution 4G deployment plans, saying it is on track to offer LTE devices by mid-year and to complete the majority of its Network Vision initiative to consolidate multiple wireless technologies in 2013. Sprint expects to make additional announcements about the timing of LTE markets and devices early this year. SPRINT NOW SUINGSprint now that its erstwhile cable partners have linked arms with Verizon Wireless is pursuing legal action against the MSOs. The carrier is seeking unspecified damages for past infringement and an injunction blocking them from using the VoIP patents. “The cable companies sued by Sprint are continuing to offer phone services that use this technology without obtaining a license or permission from Sprint,” the wireless company said in a statement. The cable operators declined to comment on the lawsuits. The dozen patents at issue include six involved in Sprint’s successful lawsuit against voice-over-Internet provider Vonage. In September 2007, a federal jury found Vonage infringed six Sprint patents, after which Vonage agreed to pay $80 million to Sprint to settle the lawsuit and to license Sprint’s VoIP patent portfolio. Over the last several years, Sprint has been a strategic partner to major cable operators. Comcast and Time Warner Cable (along with Bright House) hold equity stakes in Clearwire. The MSOs had been reselling Clearwire’s 4G WiMax service, but that arrangement would end by midyear under the exclusive deal with Verizon Wireless. In addition, Comcast, TWC, Cox and Bright House joined with Sprint in the Pivot joint venture, under which the cable operators attempted to sell 3G voice and data services provided by the wireless carrier. That partnership ended in 2008, less than three years after its formation. Sprint also has provided VoIP and interconnection services to MSOs including Time Warner Cable. In 2010, TWC announced it would phase out its use of Sprint’s services over the next several years. AS THE WIRELESS WORLD TURNS 25BA;Sprint Nextel sued former cable partners, including Comcast, Time Warner Cable and Cox, alleging infringement of voiceover- IP patents. 25BA;AT&T dropped its $39 billion bid for T-Mobile USA. 25BA; FCC approved AT&T’s $1.9 billion acquisition of Qualcomm spectrum in 700-MHz band. 25BA; Department of Justice said it is reviewing cable companies’ proposed sale of AWS spectrum licenses to Verizon Wireless. 25BA; Sprint said it is on track to offer LTE devices by mid-2012 and complete the majority of its Network Vision rollout in 2013. SOURCE: Multichannel News research More Online Download a copy of Sprint’s lawsuit against Comcast at multichannel.com/ Jan2. 2010 International Press Telecommunications Council |