CBRS spectrum entry is below stress as numerous stakeholders vie for midband assets
Competition for Residents Broadband Radio Service (CBRS), or midband spectrum within the 3 GHz band, is intensifying as a reorganization of the band’s allocation seems possible inside the subsequent two to 3 years. This spectrum race impacts numerous stakeholders, together with Wi-fi Web Service Suppliers (WISPs), cellular community operators (MNOs), authorities customers, cable operators, satellite tv for pc operators and enterprises akin to educational establishments, oil and fuel firms and utilities. Not often does a spectrum reallocation influence such a different set of entities. The FCC and NTIA are growing plans that may form this course of. To grasp these developments, let’s first present the background.
Current spectrum auctions: Competitors and worth
Midband spectrum has solely lately grow to be obtainable in massive quantities. Between 2021 and 2022, the FCC held two auctions: one for 280 MHz within the C-band (3700–3980 MHz) and one other for 100 MHz within the 3.45 GHz band (3450–3550 MHz). The most important in historical past by valuation, the C-band public sale raised $81 billion for the federal government, pushed by fierce competitors amongst main MNOs — Verizon, AT&T and T-Cell. In distinction, the three.45 GHz public sale was much less aggressive, elevating over $22 billion, roughly 22% much less in $/MHz-PoP than the C-band spectrum. This lowered competitors stemmed from elements akin to a 40 MHz spectrum cap and Verizon’s determination to abstain from bidding.
In 2020, the FCC auctioned Precedence Entry Licenses (PALs) within the CBRS band (3550–3700 MHz) below a novel tiered spectrum-sharing framework. This framework permits federal customers, together with the navy, to share spectrum with PAL licensees and Common Licensed Entry (GAA) customers. PAL licenses bought at roughly a 77% low cost in comparison with C-band spectrum because of elements akin to decrease transmit energy and lowered protection vary.
AT&T’s push for CBRS spectrum reallocation
Over the previous yr, AT&T has proposed consolidating the three.45 GHz band and C-band by relocating CBRS customers to the three.1–3.45 GHz band and auctioning the 150 MHz CBRS spectrum after revising operational guidelines, akin to permitting high-power transmitters. AT&T holds 40 MHz within the 3.45 GHz band and a median of ~80 MHz within the C-band however owns no CBRS spectrum, positioning it to learn considerably from a restructured CBRS band in comparison with different MNOs.
Conversely, the Division of Protection (DoD) has reportedly steered vacating 100 MHz of CBRS spectrum. Nevertheless, the three.1–3.45 GHz band stays off-limits for cellular service allocation, as confirmed by the Home Vitality and Commerce price range reconciliation invoice draft. These drafts require the FCC to determine and public sale 600 MHz of spectrum between 1.3 GHz and 10 GHz by 2034. The FCC should public sale at the least 200 MHz inside two years of the invoice’s enactment.
Rising spectrum candidates: New bands in play
Whereas the three.1–3.45 GHz spectrum was severely thought-about for cellular companies below the Biden administration, present coverage prioritizes retaining this band for the DoD. Nevertheless, different spectrum bands have emerged as candidates for reallocation:
- The FCC has explored releasing as much as 220 MHz within the higher C-band (3980–4200 MHz), at present utilized by satellite tv for pc service suppliers akin to Intelsat, SES and Eutelsat. Responses to the session had been combined, with some satellite tv for pc operators supporting a partial launch whereas others objected. Nonetheless, a partial launch of roughly 100 MHz seems extremely possible.
- The DoD has recognized a number of bands for potential allocation to cellular companies, together with a. 1300–1350 MHz (50 MHz) b. 1780–1850 MHz (70 MHz) c. 5850–5925 MHz (75 MHz) d. 7125–7250 MHz (125 MHz)
- The NTIA has proposed the 7125–8400 MHz band for wi-fi broadband use, both licensed or unlicensed. This band is at present occupied by mission-critical federal operations, together with Mounted, Mounted Satellite tv for pc, Cell, Cell Satellite tv for pc, Area Analysis, Earth Exploration Satellite tv for pc and Meteorological Satellite tv for pc companies. Consequently, solely parts of this 1,275 MHz band might be repurposed to guard incumbent customers.
Operational drivers: Why contiguous spectrum issues
AT&T’s place, and that of MNOs on the whole, stems from extra than simply buying extra spectrum. As an alternative, monetary and operational value concerns have to be fastidiously weighed.
Wi-fi applied sciences are more and more adopting bigger channel bandwidths. For example, 6G will help channel bandwidths of as much as 200 MHz, surpassing the 20 MHz in 4G/LTE and 100 MHz in 5G. Operators profit from contiguous spectrum allocations, versus the fragmented spectrum AT&T at present holds within the 3.45 GHz and C-band.
Service aggregation throughout extensively separated bands is expensive, requiring extra {hardware} (capital expenditure) and growing energy consumption (operational expenditure). That is possible a key driver behind AT&T’s place. Contiguous channels allow lower-cost radios, lowered energy consumption and better effectivity, which lower each capital and operational bills. In distinction, provider aggregation throughout non-contiguous channels is dear to implement.
Impression on CBRS customers: Dangers for WISPs and enterprise operators
The push by AT&T, and MNOs on the whole, for CBRS spectrum reallocation, mixed with the DoD’s partial willingness to vacate 100 MHz of the 150 MHz CBRS band, poses dangers to Common Licensed Entry (GAA) customers and different Precedence Entry License (PAL) holders, together with WISPs and enterprises (e.g., oil and fuel, utilities). On the 2020 CBRS public sale, MNOs secured 31% of the licenses bought however accounted for 62% of the funds raised by the FCC, with Verizon and Dish contributing the bulk in a roughly 2:1 cut up favoring Verizon. In distinction, WISPs, together with numerous enterprises, gained 54% of the licenses however represented solely 11% of the public sale proceeds. As the federal government seeks to boost funds and scale back the deficit, the FCC could view CBRS reallocation favorably.
Concerning deployments, most CBRS techniques as we speak function below GAA. Verizon has deployed some CBRS base stations tactically, however not extensively. Based on a 2024 NTIA report, GAA customers accounted for 71.4% of over 400,000 lively CBRS base stations by mid-2024, whereas PAL holders accounted for 28.6%, or 114,682 base stations. Notably, rural areas hosted 67.5% of CBRS base stations by mid-2024, marking the best progress class with a 160% improve between April 2021 and July 2024. [For additional information on key developments related to CBRS, see earlier article here.
Overall, wireless Internet service providers (WISPs) and enterprises stand to lose the most from the potential CBRS spectrum reorganization and reallocation to MNOs. Currently, they access 80 MHz of nearly license-free spectrum. This could shrink to 50 MHz or be entirely relocated to another band, which would be particularly detrimental as the new band may lack the robust equipment ecosystem developed for CBRS over years. Financial considerations will also significantly influence this outcome.
Indeed WISPs have invested heavily in CBRS to deliver internet to rural America, but AT&T’s plan would displace them to less effective spectrum, rendering their infrastructure obsolete and potentially widening the digital divide. In WISPA’s opinion, the move is framed as a corporate land grab, backed by misleading claims and even potential support from the Department of Defense.
In a recent article, Keefe John, Vice Chair WISPA, warns of a looming threat to rural broadband as AT&T and others push to take over the CBRS. “CBRS is not just a technical term buried in FCC filings. It’s a beacon of hope for millions of Americans in rural and underserved areas.” he said.
The author calls for urgent action from the FCC, lawmakers and the public to defend CBRS, protect rural connectivity and resist corporate monopolization of public spectrum. “We will fight for CBRS, for WISPs and for the promise of a connected America where no community is left behind,” he added.
Concluding thoughts: Balancing a complex spectrum future
The reorganization of the 3 GHz midband spectrum is a pivotal challenge that demands a delicate balance of competing interests and complex considerations. Reallocating spectrum risks disrupting rural service providers and enterprise private network operators, who rely on affordable access to bands like CBRS for critical connectivity.
Achieving an equitable outcome requires a comprehensive evaluation of financial, market, regulatory and technical factors. Policymakers, industry stakeholders and regulators must carefully assess the potential economic impact of these proposed changes in the lives of millions of citizens and businesses.