CBRS spectrum entry is underneath stress as various stakeholders vie for midband sources
Rivalry 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 throughout the subsequent two to 3 years. This spectrum race impacts various stakeholders, together with Wi-fi Web Service Suppliers (WISPs), cell community operators (MNOs), authorities customers, cable operators, satellite tv for pc operators and enterprises reminiscent of educational establishments, oil and gasoline firms and utilities. Not often does a spectrum reallocation affect such a diverse set of entities. The FCC and NTIA are growing plans that can form this course of. To grasp these developments, let’s first present the background.
Latest spectrum auctions: Competitors and worth
Midband spectrum has solely lately develop into accessible 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 biggest 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-Cellular. 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 diminished competitors stemmed from elements reminiscent of 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) underneath a singular tiered spectrum-sharing framework. This framework permits federal customers, together with the army, to share spectrum with PAL licensees and Basic Approved Entry (GAA) customers. PAL licenses bought at roughly a 77% low cost in comparison with C-band spectrum resulting from elements reminiscent of decrease transmit energy and diminished 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, reminiscent of 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 urged vacating 100 MHz of CBRS spectrum. Nonetheless, the three.1–3.45 GHz band stays off-limits for cell 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 of for cell companies underneath the Biden administration, present coverage prioritizes retaining this band for the DoD. Nonetheless, 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 reminiscent of Intelsat, SES and Eutelsat. Responses to the session have been blended, 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 cell 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 Fastened, Fastened Satellite tv for pc, Cellular, Cellular Satellite tv for pc, Area Analysis, Earth Exploration Satellite tv for pc and Meteorological Satellite tv for pc companies. Because of this, solely parts of this 1,275 MHz band could possibly be repurposed to guard incumbent customers.
Operational drivers: Why contiguous spectrum issues
AT&T’s place, and that of MNOs usually, stems from extra than simply buying extra spectrum. As a substitute, monetary and operational price issues should be rigorously weighed.
Wi-fi applied sciences are more and more adopting bigger channel bandwidths. As an illustration, 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, diminished energy consumption and better effectivity, which lower each capital and operational bills. In distinction, provider aggregation throughout non-contiguous channels is pricey to implement.
Impression on CBRS customers: Dangers for WISPs and enterprise operators
The push by AT&T, and MNOs usually, for CBRS spectrum reallocation, mixed with the DoD’s partial willingness to vacate 100 MHz of the 150 MHz CBRS band, poses dangers to Basic Approved Entry (GAA) customers and different Precedence Entry License (PAL) holders, together with WISPs and enterprises (e.g., oil and gasoline, 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 break 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 lift funds and cut back the deficit, the FCC could view CBRS reallocation favorably.
Concerning deployments, most CBRS programs at this time function underneath GAA. Verizon has deployed some CBRS base stations tactically, however not extensively. In keeping with 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 very best development class with a 160% enhance 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.
