Carrier Wrap: Verizon focused on AWS-3; Sprint, T-Mobile US tap music

Editor’s Note: Wireless operators are a busy bunch, and as such RCR Wireless News will attempt to gather some of the important announcements that may slip through the cracks from the world’s largest carriers in a weekly wrap-up. Enjoy!
–Wells Fargo Securities senior analyst Jennifer Fritzsche earlier this week noted in a research report that Verizon Communications could be more focused in the Federal Communications Commission’s planned AWS-3 auction as opposed to its 600 MHz incentive auction.
In the note, Fritzsche said that during a meeting with Verizon executives, CTO Tony Melone appeared “particularly excited about the AWS-3 upcoming auctions. Melone indicated AWS-3 is preferred over the broadcast incentive auction as [Verizon] needs more spectrum for ‘capacity more than coverage.’”
Verizon Wireless’ current LTE network is built on its 700 MHz spectrum holdings the carrier won during a government auction in 2008. Over the past several months, Verizon Wireless has added capacity support for its LTE service using the 1.7/2.1 GHz spectrum it has acquired through a 2006 auction and from a handful of third-party deals. The carrier also has spectrum in the 850 MHz and 1.9 GHz band currently supporting its legacy CDMA-based services, and has expressed an interest to eventually begin re-farming those spectrum assets to support its LTE service.
The FCC in late March laid out partial plans for the AWS-3 auction, which will include 65 megahertz of spectrum in the 1.7/2.1 GHz band for commercial wireless services and is expected to begin later this year. Those rules elicited mixed reaction from wireless carriers due to the size of the licenses to be put up for bid.
More recently, the FCC has hinted at limiting bidding capabilities of larger carriers for the 600 MHz incentive auction, which is currently scheduled to begin in mid-2015.
“A legacy of earlier spectrum assignments … is that two national carriers control the vast majority of low-band spectrum. As a result, rural consumers are denied the competition and choice that would be available if more wireless competitors also had access to low-band spectrum,” noted FCC Chairman Tom Wheeler in an FCC blog post. “While many factors go into determining the quality of wireless service, access to a sufficient amount of low-band spectrum is a threshold requirement for extending and improving service in both rural and urban areas.”
AT&T, which along with Verizon are the dominate sub-1 GHz spectrum licenses holders, threatened to possibly sit out the FCC’s planned 600 MHz incentive auction, which could lead to lower overall auction revenues, if there were limits put on its bidding capabilities. In a filing with the FCC, AT&T said that rumors of proposed spectrum auction rules limiting the participation of carriers currently controlling more than one-third of spectrum below 1 GHz in markets would prevent the carrier from bidding on licenses covering more than 70% of the U.S. population. Joan Marsh, VP of federal regulatory at AT&T, said such a scenario could see the carrier instead focus its financial means on other spectrum opportunities.
“Such restrictions would put AT&T in an untenable position, forcing AT&T to reevaluate its potential participation in the auction,” Marsh noted in a filing.
—Sprint this week announced enhancements to its “music” package, including a partnership with Spotify, a new smartphone from HTC and package rate plans for its Framily offering.
The music platform, dubbed Sprint Sound Sessions, will include access to online streaming music service Spotify; Sprint Music Plus store, which is the carrier’s online market for music, ringtones and ringback tone purchases; Music Live, which is a music news service; and NextRadio that allows customers to stream FM radio content to their mobile device.
Sprint is also providing direct access to Spotify, allowing customers signed up for its Framily plan to access six months of free service, while non-Framily plan customers will have access to three months of free service. Pricing after the initial trial will be at $10 per month for non-Framily customers; $8 per month for 18 months for Framily plans with up to five lines of service; or $5 per month for 18 months for Framily plans with between six and 10 lines of service. After the 18 month period, pricing will shift to $10 per month. The Spotify service is compatible with smartphones running Google’s Android operating system, Apple’s iOS and Microsoft’s Windows 8/8.1.
Finally, Sprint announced the availability of the HTC One Harmon Kardon edition smartphone that includes HD Audio sound features designed to produce fuller sound. The device will include Harmon Kardon’s Clari-Fi application that it claims “’rebuilds’ music fidelity lost during audio compression,” while the HD Audio feature “delivers roughly six-times the information of compact disc music and 60-times the information of an MP3 or streaming music source when playing high-res digital (FLAC) downloads from sources like HDtracks.com.”
The HTC One Harmon Kardon edition device will include a pair of AE-S headphones, while the device itself includes all of the features of the standard HTC One model.
Sprint earlier this week announced disappointing first quarter customers results, though it managed to improve its financial performance.
–Not wanting to let Sprint get all the music-related publicity, T-Mobile US announced a partnership with Syco Entertainment and SFX Entertainment to produce a television show highlighting electronic music culture and discovering new talent.
The “Ultimate DJ” program is being produced by Syco and SFX, with T-Mobile US “joining the pair to bring the innovative new show to viewers.”
–Mobile virtual network operator Consumer Cellular added more voice calling minutes, text messages and data to its rate plans at no additional charge.
The carrier, which targets mature customers, added between 100 and 1,000 more calling minutes to its voice-only plans; and between 100 to 1,000 more text messages and between 10 megabytes 500 Mb to its text and data plans. All plans remain contact-free.
Consumer Cellular late last year added Apple’s iPhone 5S, 5C and 4S to its lineup, and recently scored highest in overall customer satisfaction among all wireless operators in a Consumer Reports survey.
Additional carrier news can be found on the RCR Wireless News “Carriers” page.
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