[opendtv] Verizon in talks to share spectrum with rural carriers
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 13 May 2010 13:49:51 -0500
The FCC is happy about this push by Verizon to get broadband to rural
customers, using 4G spectrum, but what I found most telling in the piece was
this:
"When Verizon Wireless originally acquired its national 700MHz license, there
was much talk of using it to ensure rural broadband, since the low frequencies
lend themselves to large cells and cost effective coverage of sparsely
populated areas. However, and predictably, the focus of the cellco's initial
LTE roll-outs will be on its key profit centers, the big cities - Boston and
Seattle first. There are questions over how suitable 700MHz is to deploying the
dense, high capacity networks urban 4G will require, but commercially, it is
clearly easier to hit population coverage targets, and generate return on
investment, in these areas of high demand."
A frequency band that tends to propagate further, like 700 MHz and certainly
the lower TV UHF frequencies they are now trying to appropriate, work against
deployment of small cells. They make it easier for interference to occur
between cells. And small cells are needed for high density urban environments,
where frequencies are in short supply.
So it's time to temper the mantra about how great the TV frequencies are for
everything except TV.
Bert
---------------------------------
http://www.rethink-wireless.com/2010/05/13/verizon-talks-share-spectrum-rural-carriers.htm
Verizon in talks to share spectrum with rural carriers
Would accelerate LTE coverage in unprofitable areas and reduce risk
By CAROLINE GABRIEL
Published: 13 May, 2010
As Clearwire knows, 4G build-out is all about amassing spectrum and then
sharing the cost and risk of building it out, accelerating service availability
in the process. Verizon Wireless may be learning some of these lessons, having
disclosed it is in talks with rural carriers to license them some of its 700MHz
holdings. They would then build LTE systems in their territories, extending
Verizon's reach rapidly and addressing the always thorny dilemma of how to make
investment in rural access pay off.
When Verizon Wireless originally acquired its national 700MHz license, there
was much talk of using it to ensure rural broadband, since the low frequencies
lend themselves to large cells and cost effective coverage of sparsely
populated areas. However, and predictably, the focus of the cellco's initial
LTE roll-outs will be on its key profit centers, the big cities - Boston and
Seattle first. There are questions over how suitable 700MHz is to deploying the
dense, high capacity networks urban 4G will require, but commercially, it is
clearly easier to hit population coverage targets, and generate return on
investment, in these areas of high demand.
Rural areas, meanwhile, could be left behind in mobile broadband. There has
been significant consolidation of localized cellcos in recent years (AT&T and
Verizon have both made purchases as their key urban markets saturate and they
look for new users). But buying local carriers is a long step from building out
the most modern networks, so a rural partnership scheme could be a strong
solution - allowing the big names to fend off alternative carriers with rural
propositions, like Clearwire, but not shouldering the whole cost of build-out
and customer acquisition.
According to Verizon Wireless' CEO Lowell McAdam, in an interview with The Wall
Street Journal, the cellco is in talks with a number of rural wireless
operators, though no deals have yet been concluded. Under the proposals,
Verizon would license its spectrum to these small players for a nominal fee;
the partner would be responsible for marketing, selling and running the
service; responsibility for building and owning the network could be split.
This is somewhat like the franchise deals that are common in emerging markets
such as India. Verizon would then also have data roaming deals with its
partners.
This would help Verizon achieve its target of deploying LTE across its 3G
footprint by the end of 2013, and even address some of its legacy 2G footprint.
"These rural markets would take us a while to get to," McAdam said in the
interview, stressing that the partnerships would be more about coverage than
significant profits (though at least they would avert possible losses in some
markets). The discussions are set against the backdrop of an FCC consultation
on whether mobile data roaming should be made compulsory.
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at
FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word
unsubscribe in the subject line.
Other related posts:
- » [opendtv] Verizon in talks to share spectrum with rural carriers - Manfredi, Albert E
