The nation’s second largest mobile wireless provider AT&T announced yesterday a $39 billion cash and stock transaction deal to buy third-ranked mobile carrier T-Mobile, a move that would vault AT&T to the top slot of wireless companies with a combined market share of around 44%. Upon the deal’s completion, the U.S. commercial wireless market will be dominated by two companies, Verizon and AT&T, which will lay claim to more than a combined 70% market share.
Although the ramifications of the deal for the utility industry are still emerging, at first blush the merger could increase the availability of LTE service, reduce the number of towers and collocation sites that the two separate carriers now use and alter the dynamics of the ongoing debate surrounding the 700 MHz D Block of spectrum. In addition, utilities could be able to negotiate cellular service contracts with AT&T that cover wider geographic expanses than is currently the case even though the reduced competition might alter the price, terms and conditions of those contracts. Read more »
At its Open Meeting this week, the Federal Communications Commission (FCC) adopted LTE as the technology standard for 700 MHz public safety broadband networks in a Third Report and Order and invited comment on a myriad of other proposed technical requirements, including whether and how utilities could share the spectrum in a Fourth Further Notice of Proposed Rulemaking (Fourth NPRM). In its Third Report and Order, the Commission recognized that it was breaking from its policy of remaining technology-neutral; however, it decided that it was necessary to ensure interoperability. In the Fourth NPRM, the FCC has asked whether it should require public safety licensees to limit the amount of utility traffic on the network so that the public safety traffic represents the "sole or principal purpose" of the network, consistent with Section 337(f)(1) of the Communications Act. UTC plans to file comments on that issue, as well as other technical issues that were raised. Read more »
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