Is Sprint considering not bidding for PCS H?

[ericdabbs]

Sprint's already spectrum rich now, it's no big deal if they don't get this as long as they can drive the price up. Preferably they will force the price up on Charlie.

 

Well yes and no.  Yes the total number of spectrum when you include all of the 2.5 GHz spectrum is a lot but the majority of the 2.5 GHz spectrum is EBS spectrum (dynamic, deal with many leases) vs. BRS spectrum (static).  Sprint could at any time drop the EBS license leases and would be left with just 55.5 MHz of BRS 2.5 GHz spectrum.

 

However I  also say No in this respect because Sprint is still in many major markets spectrum constrained with only 20 MHz of PCS spectrum (not counting G block).  The fact that they Sprint still has to support CDMA voice, 3G, and LTE all on the PCS spectrum means that 20 MHz is still not enough. They will still need more PCS spectrum to fill these roles especially in all the major markets to add capacity.

 

I still believe that Sprint needs to bid on the H block and make great use of it to add another 5x5 LTE carrier.  Sure we like to poke fun at Charlie and how we would like to see him screwed by driving up the price to make it uncomfortable for him but at the same time, I am looking at the big picture and what is best for the wireless industry.  I don't want to see any spectrum wasted and I feel if Dish gets the PCS H block spectrum, they will put the 10 MHz spectrum to waste since they are so disorganized.  Dish is already screwed up and they don't have any plan on how they plan to deploy the 2 GHz S-band spectrum.  If you add that on top of the steps that Dish would need to do to get the additional PCS H block spectrum 3GPP certified and come up with H block wireless equipment for commercial deployment, I don't see how they will do it and meet the build out deadlines. 

 

If I were Sprint, I would definitely call Dish's bluff and bid on the H block to force Dish to convert the 2000-2020 spectrum to supplemental downlink.

[WiWavelength]

I thought the whole 1900 megahertz block was all just PCS not AWS

 

You thought wrong:  PCS does not automatically mean 1900 MHz nor the converse.

 

AJ

[omega]

Well yes and no. Yes the total number of spectrum when you include all of the 2.5 GHz spectrum is a lot but the majority of the 2.5 GHz spectrum is EBS spectrum (dynamic, deal with many leases) vs. BRS spectrum (static). Sprint could at any time drop the EBS license leases and would be left with just 55.5 MHz of BRS 2.5 GHz spectrum.

 

However I also say No in this respect because Sprint is still in many major markets spectrum constrained with only 20 MHz of PCS spectrum (not counting G block). The fact that they Sprint still has to support CDMA voice, 3G, and LTE all on the PCS spectrum means that 20 MHz is still not enough. They will still need more PCS spectrum to fill these roles especially in all the major markets to add capacity.

 

I still believe that Sprint needs to bid on the H block and make great use of it to add another 5x5 LTE carrier. Sure we like to poke fun at Charlie and how we would like to see him screwed by driving up the price to make it uncomfortable for him but at the same time, I am looking at the big picture and what is best for the wireless industry. I don't want to see any spectrum wasted and I feel if Dish gets the PCS H block spectrum, they will put the 10 MHz spectrum to waste since they are so disorganized. Dish is already screwed up and they don't have any plan on how they plan to deploy the 2 GHz S-band spectrum. If you add that on top of the steps that Dish would need to do to get the additional PCS H block spectrum 3GPP certified and come up with H block wireless equipment for commercial deployment, I don't see how they will do it and meet the build out deadlines.

 

If I were Sprint, I would definitely call Dish's bluff and bid on the H block to force Dish to convert the 2000-2020 spectrum to supplemental downlink.

With Sprint turning up 800mhz , 2.6 ghz LTE there is no need for Sprint to waste money on the H block over the next 6 months to 1 year a lot of Sprints traffic will be over LTE .

 

Also over the next 2 years when Sprint would use the H block most of the traffic will be sent over TD LTE one 5x5 carrier will mean little to nothing.

 

 

Sent from my SPH-L900 using Tapatalk 2

 

[danlodish345]

Why so small of a spectral frame

[ericdabbs]

With Sprint turning up 800mhz , 2.6 ghz LTE there is no need for Sprint to waste money on the H block over the next 6 months to 1 year a lot of Sprints traffic will be over LTE .

 

Also over the next 2 years when Sprint would use the H block most of the traffic will be sent over TD LTE one 5x5 carrier will mean little to nothing.

 

 

Sent from my SPH-L900 using Tapatalk 2

 

 

Well we will have to see what Sprint ultimately does.  I highly doubt that not too long ago Dan Hesse was begging the FCC to hurry up and set up an auction for the H block only to have Dish Network take over.  I think we are just assuming that Dish is only out for blood to get revenge at Softbank for outbidding them for both Sprint and Clearwire which I think is very childish.  Other than that do we honestly believe that Dish has any real need for the H block?  Dish has to worry about deploying their S-band spectrum as well as their 700 MHz E-block spectrum and they are probably going to be bidding on the 600 MHz spectrum anyways.  With Dish I have no idea what their LTE deployment plan is for the next 2-3 years and as much as AT&T/Verizon buy up spectrum; at least I know that AT&T/Verizon have the means to deploy it.  I mean sure Sprint may or may not need the H block but I think we can all agree that Sprint can make use of the H block to add an additional 5x5 LTE carrier.  I wouldn't call spending money to get 10 MHz of spectrum that is contiguous with the G block a waste of money.  Softbank and Sprint have already announced huge capex spending of 16 billion for the next 2 years and ever after the next 2 years the capex spending will still be about 6 billion a year.  Softbank is not in the mood to save money because they know that time is money and they have a long long road to catch up to Big 2.

 

Also I think you are underestimating how quickly LTE 2600 will be deployed.  Yes it will be faster to overlay LTE 2600 once backhaul is in place for the majority of the 39K Sprint sites since that is the largest bottleneck in NV 1.0, but it will still take a long time to do this on a nationwide scale because of permits and new equipment need to be installed at the top of towers.  For non co-located Sprint/Clearwire sites, Sprint will need to install a 2500 MHz panel and 2500 MHz RRU for each sector.  I wouldn't count on LTE 2600 as being the main Sprint LTE band for many years to come.

[Mobilesolutions]

Well we will have to see what Sprint ultimately does.  I highly doubt that not too long ago Dan Hesse was begging the FCC to hurry up and set up an auction for the H block only to have Dish Network take over.  I think we are just assuming that Dish is only out for blood to get revenge at Softbank for outbidding them for both Sprint and Clearwire which I think is very childish.  Other than that do we honestly believe that Dish has any real need for the H block?  Dish has to worry about deploying their S-band spectrum as well as their 700 MHz E-block spectrum and they are probably going to be bidding on the 600 MHz spectrum anyways.  With Dish I have no idea what their LTE deployment plan is for the next 2-3 years and as much as AT&T/Verizon buy up spectrum; at least I know that AT&T/Verizon have the means to deploy it.  I mean sure Sprint may or may not need the H block but I think we can all agree that Sprint can make use of the H block to add an additional 5x5 LTE carrier.  I wouldn't call spending money to get 10 MHz of spectrum that is contiguous with the G block a waste of money.  Softbank and Sprint have already announced huge capex spending of 16 billion for the next 2 years and ever after the next 2 years the capex spending will still be about 6 billion a year.  Softbank is not in the mood to save money because they know that time is money and they have a long long road to catch up to Big 2.

 

Also I think you are underestimating how quickly LTE 2600 will be deployed.  Yes it will be faster to overlay LTE 2600 once backhaul is in place for the majority of the 39K Sprint sites since that is the largest bottleneck in NV 1.0, but it will still take a long time to do this on a nationwide scale because of permits and new equipment need to be installed at the top of towers.  For non co-located Sprint/Clearwire sites, Sprint will need to install a 2500 MHz panel and 2500 MHz RRU for each sector.  I wouldn't count on LTE 2600 as being the main Sprint LTE band for many years to come.

 

Wrong, Sprint will have 2600 MHz as a main band this time next year. 

-Will

[ericdabbs]

Wrong, Sprint will have 2600 MHz as a main band this time next year. 

-Will

 

In some markets but not all.  Its still going to take some time.  I am thinking more like 2015.  If Sprint had all 39K sites completed with NV equipment and fiber backhaul supplied each tower...then yes its a possibility but still very unlikely.  Remember its going to take way more than the 39K sites to provide nationwide LTE 2600.  That is why they hinted 39K sites + Clearwire sites + additional sites to fill in gaps.   I highlighted that its more than just a flip of a switch to install LTE 2600 on non co-located Sprint sites.

 

You will see LTE 800 deployed more widely deployed in 2014 than you will with LTE 2600.

[Mobilesolutions]

In some markets but not all.  Its still going to take some time.  I am thinking more like 2015.  If Sprint had all 39K sites completed with NV equipment and fiber backhaul supplied each tower...then yes its a possibility but still very unlikely.  Remember its going to take way more than the 39K sites to provide nationwide LTE 2600.  That is why they hinted 39K sites + Clearwire sites + additional sites to fill in gaps.   I highlighted that its more than just a flip of a switch to install LTE 2600 on non co-located Sprint sites.

 

You will see LTE 800 deployed more widely deployed in 2014 than you will with LTE 2600.

By year 2015 January 1 it had better be done & on the way with a few new bands.

-Will

[ericdabbs]

By year 2015 January 1 it had better be done & we on our way with a few new bands.

-Will

 

Believe me it won't all be done by then.  There will be delays.  You are way underestimating the scale of LTE 2600.  I don't get why this is such a big deal to you.  If Sprint finished everything by Dec 31, 2015 is that a big deal?  It doesn't need to be 100% complete to be able to be the main band but given that NV 1.0 is scheduled to be complete by mid year 2014 even at that point its a bit aggressive to complete the nationwide LTE 2600 network in half a year.  Right now the ALU, Ericcson and Samsung teams are focusing on building NV 1.0 sites and launching CDMA 800/LTE 800.  It doesn't work in the ideal way you are imagining for a NV site where inspection teams come in and approve the launch of LTE 800, CDMA 800, LTE 1900, CDMA 1900, LTE 2600 all at once.  The reality is that a NV site is approved in pieces.

 

We are straying away from the topic of PCS H block so lets get back to that.

[Mobilesolutions]

Believe me it won't all be done by then.  There will be delays.  You are way underestimating the scale of LTE 2600.  I don't get why this is such a big deal to you.  If Sprint finished everything by Dec 31, 2015 is that a big deal?  It doesn't need to be 100% complete to be able to be the main band but given that NV 1.0 is scheduled to be complete by mid year 2014 even at that point its a bit aggressive to complete the nationwide LTE 2600 network in half a year.  Right now the ALU, Ericcson and Samsung teams are focusing on building NV 1.0 sites and launching CDMA 800/LTE 800.  It doesn't work in the ideal way you are imagining for a NV site where inspection teams come in and approve the launch of LTE 800, CDMA 800, LTE 1900, CDMA 1900, LTE 2600 all at once.  The reality is that a NV site is approved in pieces.

 

We are straying away from the topic of PCS H block so lets get back to that.

No it isn't, Once Sprint has backhaul everywhere, watch out.  

-Will

[IamMrFamous07]

I don't know much about spectrum and stuff but I think the 600mhz spectrum is better buy.

[Nickel]

I don't know much about spectrum and stuff but I think the 600mhz spectrum is better buy.

600 MHz is a mess and still years away.

[ericdabbs]

I don't know much about spectrum and stuff but I think the 600mhz spectrum is better buy.

 

What makes you think that Sprint wouldn't participate in both?  Trust me if this is one of the last slivers of beachfront spectrum, all 4 major carriers will be at the auction.  Sprint and Tmobile are in different situations than in 2008 so they will definitely be ready to compete for blocks of spectrum.  Assuming that 80 MHz is available, I want Sprint to obtain 20 MHz of that 600 MHz spectrum.

[MrZorbatron]

What makes you think that Sprint wouldn't participate in both?  Trust me if this is one of the last slivers of beachfront spectrum, all 4 major carriers will be at the auction.  Sprint and Tmobile are in different situations than in 2008 so they will definitely be ready to compete for blocks of spectrum.  Assuming that 80 MHz is available, I want Sprint to obtain 20 MHz of that 600 MHz spectrum.

FCC doesn't just sell spectrum to whoever wants it.  If Sprint has more than the arbitrary "reasonably educated person" would determine they need, FCC won't sell it to them.  This is why they shouldn't just grab everything they can when they can, just as a nonstrategic person plays Monopoly.

[MrZorbatron]

Dish has already driven the price up by proposing to pay $.50/MHzPOP. I think the consensus was that the price should have been around $.33/MHzPOP. Of course it is conditional on certan concessions by the FCC, but still.

Irrelevant.  Dish's proposed price is nothing but rhetoric.  It is essentially a case of rattling the sabre to say that they are willing to spend a lot, so others should beware of being outbid.  If no one else goes to the auction, it doesn't matter what they are willing to pay, as long as FCC's minimum prices are met.

[ericdabbs]

FCC doesn't just sell spectrum to whoever wants it.  If Sprint has more than the arbitrary "reasonably educated person" would determine they need, FCC won't sell it to them.  This is why they shouldn't just grab everything they can when they can, just as a nonstrategic person plays Monopoly.

 

I am confused on your second sentence.  Something sounds a little off.  Either way Sprint will determine whether or not they will participate on the PCS H block auction.  If they do then they will bid on it.  I am sure Dish will show up at the PCS H block auction as well but I am not convinced that DIsh really wants the H block spectrum just like they weren't serious about buying Sprint or Clearwire.  This is just a game for Charlie because he has bigger fish to fry with their build out of their S-band spectrum and getting the L-band spectrum from Lightsquared for the uplink.

[WiWavelength]

Assuming that 80 MHz is available, I want Sprint to obtain 20 MHz of that 600 MHz spectrum.

There will not be 80 MHz cleared and available. You need not assume; you can count on that.

 

AJ

[bigsnake49]

I am confused on your second sentence.  Something sounds a little off.  Either way Sprint will determine whether or not they will participate on the PCS H block auction.  If they do then they will bid on it.  I am sure Dish will show up at the PCS H block auction as well but I am not convinced that DIsh really wants the H block spectrum just like they weren't serious about buying Sprint or Clearwire.  This is just a game for Charlie because he has bigger fish to fry with their build out of their S-band spectrum and getting the L-band spectrum from Lightsquared for the uplink.

 

Yeah, I think that if they get their Lightsquared spectrum, switch the uplink and downlink of their S band spectrum, then they can use the 2000-2200 as supplemental downlink or sell it to whoever won PCS H. Combine the 2000-2020 MHz downlink of spectrum with the 1995-2000MHz of PCS H and you have a very nice contiguous 25MHz downlink. If Sprint prevails in the PCS H auction and buys the supplemental downlink from Dish they could combine it with their PCS G holdings for a nice contiguous 30MHz downlink (with using PCS G + PCS H uplinks). It might go a long way as a downpayment for Sprint's buildout of Dish's network. It might also lead Sprint to sell/reassign the EBS spectrum to Dish, since now they will be rather flush with spectrum. 

Edited October 18, 2013 by bigsnake49

[JosefTor]

What makes you think that Sprint wouldn't participate in both? Trust me if this is one of the last slivers of beachfront spectrum, all 4 major carriers will be at the auction. Sprint and Tmobile are in different situations than in 2008 so they will definitely be ready to compete for blocks of spectrum. Assuming that 80 MHz is available, I want Sprint to obtain 20 MHz of that 600 MHz spectrum.

I would prefer they buy all 80 MHz and sell 2500/2600 after a 2 year period. With 1900 LTE propagation being so horrible, I would venture only only half of Sprints customers will actually benefit... My completed town only has about 2 percent covered with usable LTE... That means that 2500/2600 is a distraction for many and not a saving grace.

 

Sent from my SPH-L710 using Tapatalk

 

 

[tybo31316]

I would prefer they buy all 80 MHz and sell 2500/2600 after a 2 year period. With 1900 LTE propagation being so horrible, I would venture only only half of Sprints customers will actually benefit... My completed town only has about 2 percent covered with usable LTE... That means that 2500/2600 is a distraction for many and not a saving grace.

 

Sent from my SPH-L710 using Tapatalk

2500/2600 is a very important piece of sprints network. I wouldn't want sprint to sell that spectrum but sprint should try to shoot for 20mhz of 600 for coverage, in building penetration, and decent speeds inside of buildings and rural towns. Also the way sprint is overlaying the network I doubt the TD LTE network I'll get bogged down like the 700 networks out there because of the site density of sprints network.

[supert0nes]

I would prefer they buy all 80 MHz and sell 2500/2600 after a 2 year period. With 1900 LTE propagation being so horrible, I would venture only only half of Sprints customers will actually benefit... My completed town only has about 2 percent covered with usable LTE... That means that 2500/2600 is a distraction for many and not a saving grace.

 

Sent from my SPH-L710 using Tapatalk

 

You've ignored a few roadblocks in acquiring and deploying spectrum.

[gnoj]

There will not be 80 MHz cleared and available. You need not assume; you can count on that.

 

AJ

 

If that is the case then I truly hope the FCC will restrict ATT/VZW to no more than 10 MHz (5x5) each. I wish they could lock them out of the auction entirely, but I know that's probably not possible. With all their 700 MHz and 850 MHz holdings, they just don't need more beachfront spectrum.

 

T-Mobile absolutely needs a 20 MHz swath to remain competitive. Sprint really only needs enough to cover the areas they can't put in 5x5 SMR LTE- the IBEZ and SouthernLinc markets. Anything more is gravy, since it appears that only one 1xA channel on SMR is successfully carrying the voice load (meaning no more SMR has to be cleared for 1xA).  I'm sure some of the regionals could use any spectrum leftover if they haven't been snapped up by then.

 

Regarding PCS H, I think Sprint should only bid on it if they plan to combine it with PCS G down the road, after re-farming another 10 MHz slice from PCS for the sake of maintaining LTE for Band 25-only devices. Otherwise there's no point in throwing money into acquiring it, getting another band certified, and upgrading NV equipment, never mind procuring devices. They don't need it simply for capacity, as EBS/BRS will provide that going forward, and coverage in urban/congested areas can be just as good depending on how aggressively Sprint deploys in-fill sites. By the time PCS H is ready for use (which will take at least a year or two after auction), LTE 2600 will be widely deployed. Most markets will also have PCS to spare once Ev-Do use declines enough.

[Nickel]

T-Mobile absolutely needs a 20 MHz swath to remain competitive.

No it doesn't. The purpose of 600 for T-Mobile should be similar to how Sprint is using ESMR.

[MrZorbatron]

I am confused on your second sentence.  Something sounds a little off.  Either way Sprint will determine whether or not they will participate on the PCS H block auction.  If they do then they will bid on it.  I am sure Dish will show up at the PCS H block auction as well but I am not convinced that DIsh really wants the H block spectrum just like they weren't serious about buying Sprint or Clearwire.  This is just a game for Charlie because he has bigger fish to fry with their build out of their S-band spectrum and getting the L-band spectrum from Lightsquared for the uplink.

 

The arbitrary "reasonable person" and "educated person" are panel-implemented benchmarks used in panel decision making.  The reasonable person standard comes into play in decisions of interpretation in situations of abiguity.  The educated person benchmark comes into play in cases of decisions regarding safety, resources, etc.

 

Pretty much, if Sprint has more spectrum than the educated person standard would see them finding a need for, then they would not get more.  Spectrum is a resource that is limited.  Different bands have different values.  It needs to be actively used, not just deployed.

 

If it were somehow available, and Sprint could buy the entire 600MHz range, from 600 to 699 MHz, they would have to show that they will be able to not just implement, but actually effectively use the new spectrum.  This promotes full utilization while discouraging anticompetitive purchasing or hoarding, as well as investment purchases.  What if Verizon was allowed to buy the H block just to keep Sprint from getting it, and then sit on it for years?  Then if they were ever legally required to sell it, sell to someone who has no use for it, and attach a contractual limitation against selling it to Sprint?

[ericdabbs]

OMG!!!! H block spectrum auction delayed due to government shutdown!!!! Oh wait it is just 1 week and is now on Jan 22, 2014.

 

http://www.fiercewireless.com/story/fcc-delays-h-block-auction-following-government-shutdown/2013-10-22