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Verizon: Trust Us, We're Not Hoarding Spectrum
Please Ignore Our Inconsistent Spectrum Crisis Rhetoric, History
by Karl Bode 05:47PM Thursday Apr 18 2013
Numerous Verizon executives are on record stating that Verizon has more than enough spectrum to deploy LTE nationally -- before Verizon nabbed another massive swath of spectrum from the cable industry. Studies have shown Verizon has plenty of spectrum, particularly after re-farming spectrum currently being used for 2G and 3G (EVDO) services. Verizon's also on record saying they have so much spectrum that neither refarming 3G spectrum or Wi-Fi offloading are priorities for them.

Yet amazingly, Verizon enjoys trotting out the spectrum crisis bogeyman when it's convenient (like say, when they want regulatory approval for a massive co-marketing deal with the cable industry). Responding to concerns by the DOJ that maybe AT&T and Verizon's spectrum buys moving forward should be capped so they can't hoard spectrum anti-competitively, Verizon CFO Fran Shammo today promised they'd certainly never consider such a thing:
quote:
"These rules could cause an auction to fail," warned Shammo on the call. Verizon shouldn't be penalized by spectrum rules, he said, because the operator isn't one to buy spectrum just to sit on it and keep competitors from using it, otherwise known as spectrum hoarding. "Verizon has never purchased spectrum to do that. We buy spectrum to use it," Shammo declared.
They'd certainly never, say, bid on spectrum with the sole goal of scuttling a competitor's business deal. Verizon has been historically lucky in that any time anyone ever asks the company to show their spectrum analysis math, they can just give a speech with the word "jobs" and "innovation" in it and regulators fall back asleep. The company would very much like you to ignore their long, long history of anti-competitive behavior and completely inconsistent spectrum crunch rhetoric -- and have faith that when it comes to spectrum, Verizon is going to be on their very best behavior.

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josephf

join:2009-04-26
Reviews:
·VoicePulse

1 recommendation

Clearwire

This article is exactly on target. And Verizon's latest Clearwire maneuver is the clearest example of this.

Verizon's new offer for the Clearwire spectrum it has no need for is simply a blatant attempt to scuttle Sprint from owning the additional spectrum it needs to service its existing client base. Verizon is attempting to block any competitors from reaching the critical mass only it and AT&T have, so that they can maintain their effective duopoly. Even with the addition of Clearwire's spectrum to Sprint's inventory, Sprint will still lag far behind both Verizon and AT&T's spectrum holdings.

DISH's spectum holdings is another thing to keep an eye on. Its merging with either T-Mobile or Sprint should be beneficial. But if Verizon or AT&T somehow attempt to get their hands on DISH's spectrum it should raise anti-trust alarm bells.

hey hey hey

@charter.com

Re: Clearwire

WRONG
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Clearwire

Think you can provide some detail to your assanine statement?

hey hey hey

@charter.com

They aren't

Please provide proof they are. Also getting more spectrum to AVOID a spectrum crisis is smart not hoarding. Do you prepare for hurricane season by waiting until one is 24 hours from landfall or do you prepare in advance IN CASE there is one?

FACTS:

Verizon bought 700 MHz spectrum for LTE. Verizon has been deploying LTE on 700 MHz for nearly 3 years now.

Verizon bought 1700 MHz and 2100 MHz AWS spectrum from the cable companies last year. The FCC gave them permission to use it LESS than a year ago. Verizon is on schedule to deploy this spectrum for LTE by the end of the year.

As far as 2G and 3G you know damn well they can not just cut off 2G and 3G networks right now. Voice and text still use 2G As well as things like security systems. Verizon just stated that 61% of all the phones on their network are smartphones. Not all of them can do 4G. So it's safe to say over half the phones in the hands of Verizon customers can only use 2G and 3G but Verizon is just supposed to cut them off? I guess if they want millions of customers fleeing to the competition that's a good idea. Verizon has already stated that 2G and 3G spectrum will be refarmed for 4G by 2021. They're going to kind of need something else to use in the 8 years inbetween don't you think?

So please tell me what spectrum are they hoarding?
Crookshanks

join:2008-02-04
Binghamton, NY

Re: They aren't

said by hey hey hey :

So it's safe to say over half the phones in the hands of Verizon customers can only use 2G and 3G but Verizon is just supposed to cut them off?

AT&T has done exactly this... moved existing 850mhz services to 1900mhz without telling anybody. You go to bed with perfect signal and wake up the next morning with next to nothing.

Verizon has always handled this sort of thing in a manner that does not adversely impact existing customers. AT&T? Not so much...

MovieLover76

join:2009-09-11
kudos:1

Re: They aren't

it moved 3G services in some locations from 850 to 1900 Mhz, mostly in more urban areas, but it did not cut off 3G services. It has shut down some of it's 2G capacity, but that's it.
SatManager

join:2011-03-17
North Las Vegas, NV
As advanced services mature, users will have to upgrade as the cell providers migrate the spectrum to LTE. This is the same as the move from analog to digital services. You will always have a portion of the users that will refuse to upgrade until the service is eliminated.

What the cell providers need to do is work with the FCC to announce a cutoff date that 2G and 3G services will no longer be available, then users will know that they will need to upgrade their equipment to use LTE. Better yet is that the FCC require the same service between all providers (the same version of LTE - No more CDMA or GSM).

SteelerRaw

@timet.com
said by hey hey hey :

Verizon bought 1700 MHz and 2100 MHz AWS spectrum from the cable companies last year. The FCC gave them permission to use it LESS than a year ago. Verizon is on schedule to deploy this spectrum for LTE by the end of the year.

FACT: Verizon also bought AWS spectrum at auction back in 2006 (that's roughly seven years ago) and to date they still haven't commercially deployed any service on that spectrum.

hey hey hey

@charter.com

Re: They aren't

said by SteelerRaw :

said by hey hey hey :

Verizon bought 1700 MHz and 2100 MHz AWS spectrum from the cable companies last year. The FCC gave them permission to use it LESS than a year ago. Verizon is on schedule to deploy this spectrum for LTE by the end of the year.

FACT: Verizon also bought AWS spectrum at auction back in 2006 (that's roughly seven years ago) and to date they still haven't commercially deployed any service on that spectrum.

Because they gave it to T-Mobile so they could get the cable companies AWS spectrum. So ask t-mobile what they are doing with it.
georgeglass5

join:2010-06-07
New York, NY

I guess

it isn't just conspiracy sites that have their share of shills.

hey hey hey

@charter.com

Re: I guess

said by georgeglass5:

it isn't just conspiracy sites that have their share of shills.

Not a shill. I see you still have provided my any proof of hoarding. I guess insults are all you have. At least I present FACTS. If I wrong PROVE IT. Call me a shill doesn't prove anything. It must be nice to believe something without a basis in fact and just accept it even when proof otherwise exists. And all you have to do to prove your belief is right is to call someone a name.

IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

They can lower prices then

I wish they would lower prices or raise the caps. I'd like to buy the new Netgear LTE router and kick Comcast to the curb completely. Or I might buy a DSL connection for the data hungry Facebook games my mother likes to play and the above mentiond LTE router for my online activities that I desire a faster connection for.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

"Hoarding"?

It takes years to acquire tower sites and equip them. Strategically, they can't plan nationwide coverage, especially for the data-hungry fruit company flock, without amassing large amounts of spectrum years in advance. The FCC's current allocation methodology (MSA block auctions) doesn't help matters.

Sounds like a competent business plan, investing massive amounts for the future, not hoarding.