FCC Will Push for Spectrum Sharing in 3.5 GHz Band to Support Mobile Small Cells

The Federal Communications Commission will, by the end of 2012, initiate formal steps to authorize spectrum sharing in the 3.5 GHz band, potentially adding about 100 megahertz worth of spectrum intended to be used to support mobile network small cells. 

The set of frequencies between 3550MHz and 3650MHz is currently used in radar systems but could be shared with other wireless services. It would possibly be a complex undertaking.

However, in order for the government to keep using the spectrum for radar systems, other uses would have had to be blocked for about 200 miles inland from all U.S. coastlines, leaving out a majority of the country's residents, PCAST said in its report. A spectrum-sharing system could dramatically shrink or eliminate those exclusion zones, the group said.

Because of its high frequency, the 3.5GHz band would be better suited to fixed wireless Internet service than to mobile, according to Farpoint Group analyst Craig Mathias. 

“Sharing is a long-term process, and we are at day one of a long journey,” analysts at  Rysavy argue. Currently, there are three sharing models:

• Geographic sharing, in which a wireless carrier may use a federal agency's frequencies only in certain geographic areas;

• “Temporal” sharing, in which a wireless carrier may use a federal agency's frequencies only during certain times of the day or year; and

• Technology-based sharing, in which wireless carriers and a federal agency would each use a cognitive, or “smart,” radio device that can search wide swaths of a spectrum band for “quiet,” or unused, frequencies over which to transmit and receive data.

Such operations can be complex, many would note. 

Canadian Competition Bureau sues Big Three Telcos

The Canadian Competition Bureau is taking legal action against Canada’s big three mobile service providers,  along with their main industry association, to force them to stop what it alleges is misleading advertising that promotes “costly premium texting services” that slam consumers with hidden fees.

Rogers Communications Inc., BCE Inc., Telus Corp., and the Canadian Wireless Telecommunications Association are being sued for consumer refunds and possibly $31 million in fines.

Apple IPhone 5 Will Cost U.S. carriers $10 Billion in Device Subsidies

Stifel Nicolaus analyst Christopher King estimates that U.S. mobile service providers will wind up incurring about $10 billion in device subsidies as they sell iPhone 5 devices.

If so, those sales would likely affect operating margins for both companies during the entire second half of 2012.

“Given our assumption of approximately $425 in carrier subsidies per handset, we believe the U.S. carrier market could be on the hook for more than $10 billion over the last three and a half months of the year alone, entirely due to the new iPhone launch,” he said.

If you wonder why service providers have a "love-hate" relationship with the iPhone, that's why.

HP Thinks it "Must" Offer its own Smart Phone

HP CEO Meg Whitman offers a simple explanation for HP's belief that the company "has to" sell its own smart phone.

"We have to ultimately offer a smartphone because in many countries of the world that is your first computing device," says Whitman. "You know, there will be countries around the world where people may never own a tablet, or a PC, or a desktop."

"They will do everything on the smartphone," Whitman says. "We’re a computing company; we have to take advantage of that form factor."

The logic is sound enough, but whether HP is simply too late is the issue. It's hard to imagine how HP comes up with a differentiated offer or a big enough application store on its own.

HP seems almost forced to try to leverage an existing mobile OS and developer community, such as Android operating system ecosystem, or possibly the Windows Phone platform, though the applications community for Windows now is much smaller than that of Android.

But going with Android means taking on the likes of Samsung. Having stumbled with its Palm acquisition, HP is unlikely to want to make the same mistake by buying Research in Motion.

Whitman makes a cogent argument for why HP has to be in smart phones. What remains to be seen is how HP can pull that off.

200,000 Time Warner Cable RGUs Exposed to Google Fiber Threat

Time Warner Cable's CTO Irene Esteves says Google's Kansas City 1-Gbps Internet access and TV service bundle doesn't pose a huge threat to the cable operator's overall business. Of course not. What Google Fiber does threaten is about 200,000 revenue generating units Time Warner Cable presently sells in the Kansas City market.

Of the 300,000 homes that Google Fiber is expected to pass in the area eventually, Esteves estimates that Time Warner Cable has 100,000 Internet and 100,000 video subs at risk.

If you assume that half the broadband customers in the Time Warner Cable service area buy high speed access from Time Warner, while half buy from AT&T, and if broadband penetration is 70 percent of homes, then you might assume Time Warner Cable's risk would be about 35 percent, or roughly 105,000 customers, which just about matches the Time Warner Cable figures.

If Google Fiber takes share equally from AT&T and Time Warner Cable, and if initial take rates are about 18 percent, one would expect losses of about nine percent for both incumbent service providers. That implies a potential Time Warner Cable loss of perhaps 9,000 high speed access customers.

If half the high speed access customers also buy the video service, then Time Warner Cable also potentially faces the loss of about 4,500 video accounts as well.

Among the other competitors in the Kansas cities market are DirecTV Group, Dish Network Corp., AT&T and SureWest Communications.

Apple's iPhone 5 Won't Work on 4G in Much of Europe

Apple's iPhone 5, launched to great fanfare in the United States on Wednesday, will not work on superfast mobile broadband networks in much of Europe, potentially confusing consumers and setting back the development of 4G services in the region.

Some carriers will benefit. Only Deutsche Telekom and Everything Everywhere in the UK will initially be able to offer the fastest internet access to iPhone 5 users in their markets, because they are the carriers holding the right frequencies.

The iPhone 5 is not compatible with 4G services on the 800MHz and 2.6GHz bands deployed across much of western Europe, including Spain, Italy and France.

Mobile Carriers Might Overcount Data Usage by 5% to 7%

U.S. mobile service providers might overcount end user data usage  by five to seven percent, a new study suggests. University of California Los Angeles computer science researcher Chunyi Peng probed the systems of two large U.S. mobile networks representing 50 percent of all U.S. mobile subscribers.

The researchers used a data-logging app on Android phones to check the data use that the carriers were recording. The carriers were found to usually count data correctly, but they tended to overcount—and hence potentially overcharge—when a person used applications that stream video or audio, and particularly when coverage was weak or unreliable.