AT&T spectrum-lease announcement a potential boon for utilities
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AT&T spectrum-lease announcement a potential boon for utilities
But a lot can change in five years, particularly in a wireless industry that is moving at warp speed in an attempt to keep up with a never-ending demand for bandwidth. During this time, the consumer market has been saturated, multiband technologies have matured and carriers are densifying their networks to once-unimaginable levels while contemplating the use of higher-frequency spectrum. For example, a Verizon official said in November 2014 that the carrier at that time was planning to have 10 times as many sites nationwide as it had historically.
Now, both Verizon and AT&T have announced prioritized services for valued enterprise customers (offerings that I believe should be in the marketplace but would seem to be at odds with the FCC’s net-neutrality philosophy). AT&T has taken prioritization a step further with its spectrum-lease proposal for utilities.
Only time will tell whether the deal that AT&T has envisioned will prove to be attractive enough that utilities will sign contracts with the carrier. Right now, AT&T isn’t saying publicly what band its spectrum-lease frequencies are in or what the base terms of a lease would be. However, if the price is right, there is no question that AT&T’s spectrum would address a big need for utilities.
This spectrum-lease development is particularly interesting given its timing. The 600 MHz incentive auction is slated to begin in a month, and AT&T is one of the carriers that publicly has acknowledged its intent to pursue the FirstNet contract and its associated access to 20 MHz of prime 700 MHz airwaves. Is it a coincidence that the spectrum-lease offering was contemplated under these circumstances?
Regardless of the reasons for the proposal, the spectrum-starved utility industry should be happy with the AT&T announcement. Just a couple of years ago, utilities seemed to have no clear path to a broadband future. Now, multiple choices exist—the AT&T spectrum-lease offering, prioritized service and the potential to work with FirstNet or maybe pdvWireless—and potential opportunities involving 3.5 GHz and 4.9 GHz spectrum also remain viable possibilities.
Even if they ultimately do not select the AT&T option, just having an extra choice gives utilities a better negotiating foundation as they navigate the decision-making path to their broadband futures.