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FCC Undoing Rules That Make It Easier For Small ISPs To Compete With Big Telecom (vice.com)

An anonymous reader quotes a report from Motherboard: The Federal Communications Commission is currently considering a rule change that would alter how it doles out licenses for wireless spectrum. These changes would make it easier and more affordable for Big Telecom to scoop up licenses, while making it almost impossible for small, local wireless ISPs to compete. The Citizens Broadband Radio Service (CBRS) spectrum is the rather earnest name for a chunk of spectrum that the federal government licenses out to businesses. It covers 3550-3700 MHz, which is considered a "midband" spectrum. It can get complicated, but it helps to think of it how radio channels work: There are specific channels that can be used to broadcast, and companies buy the license to broadcast over that particular channel. The FCC will be auctioning off licenses for the CBRS, and many local wireless ISPs -- internet service providers that use wireless signal, rather than cables, to connect customers to the internet -- have been hoping to buy licenses to make it easier to reach their most remote customers.

The CBRS spectrum was designed for Navy radar, and when it was opened up for auction, the traditional model favored Big Telecom cell phone service providers. That's because the spectrum would be auctioned off in pieces that were too big for smaller companies to afford -- and covered more area than they needed to serve their customers. But in 2015, under the Obama administration, the FCC changed the rules for how the CBRS spectrum would be divvied up, allowing companies to bid on the spectrum for a much smaller area of land. Just as these changes were being finalized this past fall, Trump's FCC proposed going back to the old method. This would work out well for Big Telecom, which would want larger swaths of coverage anyway, and would have the added bonus of being able to price out smaller competitors (because the larger areas of coverage will inherently cost more.)
As for why the FCC is even considering this? You can blame T-Mobile. "According to the agency's proposal, because T-Mobile and CTIA, a trade group that represents all major cellphone providers, 'ask[ed] the Commission to reexamine several of the [...] licensing rules,'" reports Motherboard. The proposal reads: "Licensing on a census tract-basis -- which could result in over 500,000 [licenses] -- will be challenging for Administrators, the Commission, and licensees to manage, and will create unnecessary interference risks due to the large number of border areas that will need to be managed and maintained."

21 of 98 comments (clear)

  1. US wide spectrum is in the national interest by AHuxley · · Score: 3, Insightful

    No driving from city to city and changing to smaller more expensive networks.
    No fees to access another small network in the USA simply for enjoying the freedom to move around the USA.
    Stay with your existing plan all over the USA as your brand will finally be able to get access to all of the USA.
    No more very local monopolies that gathered up all the local spectrum keeping out other brands from all over the USA.
    Enjoy your bands support, pricing and quality of service all over the USA. No more unexpected payments demanded from local monopolies to connect in their state, city.
    Wireless spectrum was to allow innovative communications services all over the USA. Not to be small local monopolies that demand connection payments as they got granted the ability to be the only network in that part of the USA.

    Enjoy the freedom to travel all over the USA with your own trusted telco plan. No more strange costs just for making a call in California or New Jersey because someone local got all the spectrum and kept it so they could get extra payments for people trying to make a call.
    Soon your trusted telco brand will be available all over the USA at the same easy to understand rates. Enjoy making calls and using data all over the USA without local monopolies adding their extra data costs.

    --
    Domestic spying is now "Benign Information Gathering"
    1. Re:US wide spectrum is in the national interest by Plus1Entropy · · Score: 3, Informative

      Add this to the list of comments you should recall in 10 years when these rules have totally fucked all the rural communities out of any chance of getting affordable broadband:

      55890525
      55890785

      --
      Only crack the nuts that crack. You don't put the ones that don't crack in the sack.
    2. Re:US wide spectrum is in the national interest by SumDog · · Score: 4, Insightful

      There is already plenty if spectrum for that. The big providers have already purchased up national LTE coverage, GSM/CDMA coverage, Wi-Max coverage and even fall-backs to EDGE coverage.

      This is new spectrum space, which could be using by small municipalities to offer local wireless Internet coverage. They're most likely going to have to offer such coverage with better deals than the major carriers, with the trade-off being limited range.

    3. Re:US wide spectrum is in the national interest by postbigbang · · Score: 2

      I don't pay any fees to access any roaming in any area of the US, and yes, I have an all you can eat $50/mo plan. I have an existing T-Mobile plan that does this.

      But hark, I have no phones (and THERE ARE NO PHONES) that currently support the 3.5GHz band. Nada.

      So there is no freedom because there are no phones and there are no romaing charges. When the mis-named 5G starts arriving, it also won't make any difference, either, for the reasons above. It's a boondoggle to sell more licensed spectrum to the big guys.

      --
      ---- Teach Peace. It's Cheaper Than War.
    4. Re:US wide spectrum is in the national interest by Anonymous Coward · · Score: 2, Insightful

      It doesn't really matter. It's either a local monopoly owned locally or a national network that has a local monopoly in your area. Or maybe a duopoly. In either case, it doesn't matter because all the major carriers collude on pricing..

    5. Re:US wide spectrum is in the national interest by eriks · · Score: 5, Insightful

      I'm no expert, but It seems to me that access to specific spectrum by cell providers is not the issue with mobile connectivity. It's not like you can't manufacture a radio that can't transmit on more than one band. It's that the various players have never had an incentive to share/pool or at least wholesale resources to each other. This is clearly in the "Regulate-able" zone, since this is *our* spectrum we're talking about. A resource that we can all benefit from, and that we literally *have* to share it in order to use it effectively.

      I live in a rural area, there is a cell tower 1/2 mile from my house, but I don't have signal, because the tower doesn't talk to my "brand" of phone. I don't even know what the specifics are, and I could switch providers, but this particular provider has no signal in other areas where I often go, whereas the one that doesn't work at my house works most other places that I go.

      If there had been a regulation 20 years ago that said "Hey, let's find a common industry solution so that all phones can talk to all towers, and then let the owners of those towers worry about billing each other" we wouldn't have the mess we have now with competing standards and antagonistic competitive business. I sometimes even end up places where I have *signal* but the tower tells me (essentially) that while I can talk to you, I won't let you use me, since your provider doesn't have a billing arrangement with me in this area. I realize these things are complicated, and I'm perhaps oversimplifying, but they've been made more complicated than they need to be.

      It's like "Hey! you can't drive on this road! You have a Ford! Only Chevys can drive on this road!" That's insane, right? But we put up with it with mobile communications, because... why, exactly? I realize this isn't an issue in metro areas (they have issues too, just different ones) but if the system were managed and engineered properly we wouldn't have this type of issue at all.

      Letting the incumbent competing players have even MORE power and control is probably not going to solve this problem. This is one of those issues that's going to have to play out over a long time now, since the window for regulating a unified system probably closed long ago.

    6. Re:US wide spectrum is in the national interest by pacmanfan · · Score: 2

      No driving from city to city and changing to smaller more expensive networks. No fees to access another small network in the USA simply for enjoying the freedom to move around the USA. Stay with your existing plan all over the USA as your brand will finally be able to get access to all of the USA. No more very local monopolies that gathered up all the local spectrum keeping out other brands from all over the USA. Enjoy your bands support, pricing and quality of service all over the USA. No more unexpected payments demanded from local monopolies to connect in their state, city. Wireless spectrum was to allow innovative communications services all over the USA. Not to be small local monopolies that demand connection payments as they got granted the ability to be the only network in that part of the USA.

      How do you expect CBRS licenses will change this situation? The CBRS plan from 2015 until late 2017 was to have census-tract-sized licenses, covering a smaller area than has been licensed before. The TMO/CTIA proposal is to use PEA (Partial Economic Area)-sized licenses, which cover metro areas or large swaths of rural areas. This would make the license area similar to existing cellular licenses, far from "nationwide" like you are saying.

      Enjoy the freedom to travel all over the USA with your own trusted telco plan. No more strange costs just for making a call in California or New Jersey because someone local got all the spectrum and kept it so they could get extra payments for people trying to make a call.

      CBRS is an acronym for Citizens Broadband Radio Service. "Telco", "call cost", and "national" aren't really very relevant to this discussion.

      Taken from the FCC's NPRM on CBRS:
      6. This regulatory adaptability should make the 3.5 GHz Band hospitable to a wide variety of users, deployment models, and business cases, including some solutions to market needs not adequately served by our conventional licensed or unlicensed rules. Carriers can avail themselves of "success-based" license acquisition, deploying small cells on a GAA basis where they need additional capacity and paying for the surety of license protection only in targeted locations where they find a demonstrable need for more interference protection. Real estate owners can deploy neutral host systems in high-traffic venues, allowing for cost-effective network sharing among multiple wireless providers and their customers. Manufacturers, utilities, and other large industries can construct private wireless broadband networks to automate processes that require some measure of interference protection and yet are not appropriately outsourced to a commercial cellular network. Smart grid, rural broadband, small cell backhaul, and other point-to-multipoint networks can potentially access three times more bandwidth than was available under our previous 3650-3700 MHz band rules. All of these applications could share common wireless technologies, providing economies of scale and facilitating intensive use of the spectrum.

      Soon your trusted telco brand will be available all over the USA at the same easy to understand rates. Enjoy making calls and using data all over the USA without local monopolies adding their extra data costs.

      As I've shown above, that isn't the purpose of CBRS, nor will CBRS enable this while previous spectrum auctions have failed. There is nothing preventing large carriers from bidding on these licenses, large or small. Large licenses shut out the very users CBRS was intended for, though, solely for the benefit of the large cellular carriers. I don't believe most Americans view the large carriers with the same rosey glasses as you. "Your trusted telco brand" may have better approval ratings than Congress, but that's a pretty low bar.

    7. Re: US wide spectrum is in the national interest by afidel · · Score: 2

      I take it you don't spend much time in rural America? The number of times you get a "I can see a tower but can only use it for 911 because your Telco and the tower owner don't have a roaming agreement" is fairly high and highly infuriating, and that's with large license blocks, with lots of podunk ISPs it would be worse because they would try to extract as much as possible from their license and so would jack fees to the point where the Nationals would just block them.

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  2. And? by no-body · · Score: 2

    Falls all under the category of "more is never enough", "you can fool a lot of people this is good for them and succeed", "you owe the one's helping you out to do what is good for them"

    Also called late capitalism or bribery solidly implemented corrupting a lot of minds...

    It's happening for a while - 10/20/50 years or more and developing....

  3. Confusing title by glitch! · · Score: 2

    The title says that licensing new spectrum (with a bias to "Big Telecom") will make it harder for small ISPs to compete.

    First, how would "small ISPs" actually use the newly licensed spectrum if they did get authorization? Would they buy the new access points that magically appear to use this spectrum? Are the big equipment producers in WIFI even interested in licensed spectrum? I think these are material questions.

    My conclusion is that this is just another spectrum lottery, and the end result is noone is harmed and very few benefit.

    --
    A dingo ate my sig...
    1. Re:Confusing title by pacmanfan · · Score: 2

      First, how would "small ISPs" actually use the newly licensed spectrum if they did get authorization? Would they buy the new access points that magically appear to use this spectrum? Are the big equipment producers in WIFI even interested in licensed spectrum? I think these are material questions.

      My conclusion is that this is just another spectrum lottery, and the end result is noone is harmed and very few benefit.

      3.65Ghz LTE (not Wifi) equipment is available today from Airspan, Baicells, Telrad, and probably other manufacturers. Equipment has been available for a while for use under older licensing rules, with the intent to keep using the same equipment when 3.65Ghz gets repurposed under newer CBRS licensing rules, replacing the older licensed usage. The working plan since 2015, supported by Google, Microsoft, and other developers of SAS (Spectrum Access System, the centralized control system that prevents various licensees from interfering with each other), has been for licenses to cover census tract-sized areas. Small network operators have been purchasing and deploying this equipment for years, expecting the opportunity to bid on census-tract-sized licenses when their current licenses are subsumed under the new CBRS rules. This TMO and CTIA-supported change is tantamount to pulling the rug out from under these operators, after they have already invested heavily in this new LTE equipment.

    2. Re:Confusing title by pacmanfan · · Score: 2

      They have the local spectrum and if the locals pay they can enjoy the list of prices set. If they don't pay its back to a paper insulated wireline network. Great for the owners of the only local wireless "internet" company.

      Who has the local spectrum? From the FCC's plan: "Up to seven total PALs may be assigned in any given census tract with up to four PALs going to any single applicant." At the very least this will allow a duopoly, with up to seven licensed competitors in an area. Regardless of the license size, big or small, there is nothing preventing a large carrier from bidding on a license!

      Once national and state wide networks are allowed in with real price competition that generational wealth is open to competition.

      "National and state wide networks" are allowed to bid against any local user. The difference is the area the license covers. Census tracts are 52 square miles on average. Partial Economic Areas are 9125 square miles on average. How many users do you think can afford a PEA-sized license? It is economically unfeasible for anyone except a select few cellular carriers. Does that sound like "real price competition" to you?

      So its presented as "small ISP's" rather than a locals having control over spectrum for generations.

      Under the 2015 NPRM, licenses would be bid upon every 3 years. That allows license prices to reflect current market value, and doesn't allow for any generational lock-in.

      Local wanting internet, networking will soon have more freedom to use national networks.

      The same national networks that cover densely populated areas, and ignore many rural areas in between? The same national networks that already own oodles of spectrum licenses, yet don't utilize that spectrum remotely to its full potential? The same national networks that lock customers in to multi-year contracts, lock down the smartphone OSes, preinstall bloatware, ads and tracking software? The same national networks that don't offer true unlimited service or fixed service plans for home use? The same mobile networks that don't offer public IP addresses, and (in some locations) stable network latency suitable for gaming and interactive uses?

      Its the network version of bridge building, a rail network, paved roads, water and electricity arriving in a small town.

      What about the many, many small towns with limited or no service from the national carriers, despite the carriers already owning spectrum licenses that cover those towns? Those areas deemed economically unfeasible by the large companies, may never get that "bridge" built unless a local company or cooperative does it. CBRS isn't magical, and the companies who haven't deployed 600/700/800Mhz LTE in small towns or rural areas yet, probably won't be rolling in to put up new towers just for 3.65Ghz. CBRS is an opportunity for local people to fill in gaps in the coverage areas of the national carriers, but with the 9125-square-mile average license size that TMO/CTIA are wanting, this opportunity will not come to fruition.

      So its all about the "small ISP's" who now face quality competition for the first time. With a relaxing of federal rules competition can move all over the USA and so the "small ISP's" that have the local spectrum want to present it as good "them" vs the "big telecom".

      With all due respect, I have to question your motivation on this topic. It's not a "relaxing of federal rules", it's a tweak of proposed rulemaking that makes it practical for only the largest few companies to gain licensed access, shutting out the opportunity for smaller users to even bid on their local area. It does nothing to encourage competition, and does everything to stifle it. CBRS has in the works since 2010, and from the outset it was i

  4. This has nothing to do with T-Mobile or CTIA by rahvin112 · · Score: 3, Insightful

    This has every to do with the head of the FCC being a former manager at Verizon and using the FCC to gain future employment. He had the nerve to argue that the NN regulations hurt small business when in fact they did the exact opposite. He's in this to make his next job a high power executive position at one of the major telecoms. He doesn't care about any small business or any consumer, all he cares about is empowering the large teleco's to wipe out competition and be able to toll the connections of their customers to extort money out of Internet businesses. That's it.

    Trump didn't drain the swamp, he pumped an extra million gallons into it giving industry direct control over the government. Hell he proposed fuel requirements for power plants as a way to make all rate payer pay more to support coal which is no longer the cheapest source of power (that's wind, and solar is right behind wind with both cheaper than coal by a significant percentage) these days even with all the subsidies coal gets. Rolling back regulations that advantage small businesses would be the next step in corporate control over government and the head of the FCC that Trump put in position is just the man to do it.

    1. Re:This has nothing to do with T-Mobile or CTIA by sydbarrett74 · · Score: 4, Informative

      being a former manager at Verizon

      Pai was no mere 'manager' at Verizon—he was Associate General Counsel. Before that, he was at the DoJ. So he has a history of switching back-and-forth between lucrative private-sector positions and federal government appointments. Lather, rinse, repeat.

      --
      'He who has to break a thing to find out what it is, has left the path of wisdom.' -- Gandalf to Saruman
    2. Re:This has nothing to do with T-Mobile or CTIA by RazorSharp · · Score: 2

      That's a capability that could really come in handy in case of a natural disaster or other calamity. That is why the regulations aimed to subsidize plants that can store 60 days of fuel onsite.

      This statement, which seems to be the crux of your argument, is obviously disingenuous. The regulation was sought by a specific coal company and specifically tailored to that company and the regions it operates in. You appear to know enough about the situation that you must be aware of this. The sad fact is that the actions of the current administration are so indefensible that supporting these policies requires bold faced lies.

      Storing sixty days worth of fuel on-site in case of some mysterious "natural disaster or calamity" is ridiculously excessive. What possible scenario can you imagine where this would be necessary? Such a disaster—which to the best of my knowledge, has never happened anywhere ever—would surely destroy the infrastructure that connects the power plant to its customers, making all that on-site fuel useless.

      It's like every Trump supporter is either a raging moron, or, in your case, a Sarah Huckabee Sanders shamelessly lying. We get it. You believe that short term economic gains are more important than a long term sustainable environment because by the time the shit hits the fan you'll be long dead. While I find that position to be abhorrent, at least people used to be honest about it. But I guess that's how minority interests grab power. Lies, deceit, exploiting religious fears, and undermining democracy.

      --
      "From the depths of my skeptical and rationalist soul, I ask the Lord to protect me from California touchie-feeliedom."
  5. Re:Why should size matter? by youngone · · Score: 2

    Not too dense to spell dense correctly.

  6. Re: Why should size matter? by saloomy · · Score: 3, Insightful

    Going by your question, it shouldn't. That's the point. Imagine if land was sold in 10,000 acre plots. Only millionaires and billionaires could own it, and then everyone would have to rent from them to live, and abide by whatever rules they imposed on that land. The smaller ISPs who serve a rural community or fill in a market gap can't use the spectrum at acution here, whether or not T-Mobile uses it, since it will be the only one who has a license to use it (since it's the only one who can afford to use it). By making the plots small, anyone could afford to use it (yes, even the billionaires).

  7. Re: Why should size matter? by viperidaenz · · Score: 2

    Your asshole neighbour who's dog isn't fenced would be violating their license to occupy and be fined or evicted.

  8. Re: Why should size matter? by c6gunner · · Score: 5, Insightful

    Everyone is subject to the same laws regardless of how much money they have.

    Yes. It's equally illegal for the billionaire and the pauper to sleep under a bridge.

    That is how a fucking free market works.

    I'm a big fan of the free market, and I have to say it seems like you don't know the first thing about how it works.

  9. More hysteria by Obfuscant · · Score: 4, Informative
    First of all, this is a relatively small piece of spectrum. There is already wireless internet using other bands.

    Second, this has nothing to do with cell phones, so the comment about how someone's phone doesn't cover this band and there will be no phone that do is irrelevant.

    Third, it is under consideration, not a done deal. The headline is flamebait -- "FCC Undoing" is wrong. They might.

    And fourth, yes, licensing small areas creates a lot more work for everyone involved than licenses for large areas. It's called "coordination", and the work goes up exponentially with the number of parties that need to be coordinated. Someone has to make sure that the licensee for Backwater, IA doesn't interfere with the licensee for South Backwater, IA. That's harder than telling T-Mobile in IA not to interfere with AT&T in the next state over.

    All of that doesn't mean I support the change. It's just not that earth shattering to begin with.

  10. Re:You have to admit, it's fucking genius by slew · · Score: 2

    T-Mobile asks the FCC to re-examine the proposal because it "will be challenging for Administrators, the Commission, and licensees to manage". In other words, hey guys, do you realize how much fucking work this is going to be for you? Are you sure you don't want to see it our way?

    The argument that it will be challenging to manage probably tickles a bureaucrats toes: huge head-count, complicated reporting structure, impossible to audit for efficiency... That is the kind of mission that calls for truckloads of mid-level managers (A-4,B-5,C-3) which means there are empires to build...

    A long time ago, my sister worked for the BLM. She had horror stories on how mining leases are handled by the federal government. They hired so many people at the BLM to oversee the leases that many employees were so bored at times that they would literally fight to do work when it came in the door. Processes were deliberately non-automated and nobody was allowed to work on anything that wasn't specifically listed in their job function. Basically all this 110 person division she worked in was accepting and depositing royalty checks from mining companies for only one region of the country. Nobody ever actually audited any of the mining leases unless someone complained. My sister got her CPA and of course she wasn't allowed to work on audits (because it wasn't listed in the job function she was hired into and they already hired too many auditors, many of whom didn't even have business or accounting degrees so they couldn't be promoted, only "step-ed" up). Nobody knew anything about what was going on about any mining leases, let alone any auditing techiques.

    I'm thinking the FCC managing spectrum leases would be similar level of "quality service".

    FWIW, my sister quit after about a year because she couldn't stand the boredom anymore (the supervisors even deleted solitaire from their windows computers installs because some GSA auditor complained that it "looked bad to the director to see them playing solitaire when he dropped in for visit") and she took a significant PAY CUT to work for a CPA firm which tells you how much they were overpaying people...