Despite LTE, Smart Phone Interoperability Not on the Horizon

Jul 28, 2010

Long Term Evolution ("LTE") is emerging as the wireless network technology for mobile broadband in the 700 MHz band. AT&T, Verizon Wireless, other wireless carriers and the Public Safety community have committed to LTE for their 700 MHz wireless broadband networks. Despite the common interface, services providers' 4G LTE smart phones and handsets will not be interoperable with their competitors' 700 MHz broadband networks.

The "walled gardens" that have dominated wireless services in the United States will be part and parcel of 4G networks. Relatedly, the FCC has given no signal that it will curtail or even address exclusive handset arrangements between wireless carriers and handset manufacturers.

The LTE standards setting organization—3rd Generation Partnership Project (3GPP)—has addressed various aspects of LTE technology, including the frequency bands for the 700 MHz networks. Taking into the spectral environment at 700 MHz, 3GGP determined there should be four distinct frequency bands that correspond to the major blocks of 700 MHz spectrum. Click here for the 700MHz band plan:

  • Band 12 (lower 700 MHz A, B and C blocks);
  • Band 17 (the lower 700 MHz B and C Blocks);
  • Band 13 (the upper 700 MHz C block); and
  • Band 14 (the Upper 700 MHz D and Public Safety Broadband blocks).

Based on carrier and handset manufacturer comments in FCC proceedings, AT&T and Verizon Wireless have specified handsets and smart phones that operate on their discrete 700 MHz frequency bands. For example, it is expected that the Verizon Wireless 4G smart phones will transmit on the Band 13 frequencies inasmuch as Verizon secured the Upper 700 MHz C-Block for the Continental United States (CONUS).

The carriers have apparently decided that the single 700 MHz band radio supports desired handset form factors while permitting the inclusion of non-700 MHz frequencies, ensuring their subscribers have backward compatibility to their respective 3G broadband networks. Sprint's recently introduced 4G phones that operate on Clearwire's 2.5 GHz WiMAX network incorporate backward compatibility, as well. Motorola has been developing Public Safety handsets that operate solely on Band 14 frequencies. Reportedly, Harris has developed an "all-band" 700 MHz handset for Public Safety.

Sprint, T-Mobile, MetroPCS and rural and regional carriers are calling upon the FCC to require "all-band" 700 MHz handsets, but we do not see the FCC responding positively to their pleas. Verizon Wireless and AT&T maintain that an "all-band" 700 MHz radio will increase the cost of 4G subscriber units and undermine their ability to provide customers with backward compatibility to their respective 3G networks. They also argue that any "all band" mandate would be inconsistent with the longstanding discretion the FCC has granted to carriers in handset design and which they relied upon in engineering their 4G networks. Looking to reinforce their market positions, both AT&T and Verizon Wireless have asserted that the FCC lacks the statutory authority to mandate or set the terms for wireless broadband roaming agreements.

Other than Sprint and Clearwire, and the cable operator investors in Clearwire, all of whom provide service over the 2.5 GHz 4G network, wireless carriers, such as MetroPCS, Cricket, and smaller regional carriers that have secured some 700 MHz broadband spectrum face two significant hurdles in rolling out 4G services:

1. With Verizon Wireless and AT&T pursuing single band 700 MHz 4G handsets, the development and unit costs for "all-band" 700 MHz smart phones escalate sharply.

2. Without roaming agreements, these wireless carriers cannot effectively market nationwide wireless broadband services, in contrast to the manner in which they have marketed their wireless voice services.

Based on its spectrum inventory, T-Mobile may look to its AWS spectrum to deploy 4G networks.

Harbinger Capital to Bankroll First Satellite-Terrestrial Mobile Broadband Network

Harbinger Capital Partners has created LightSquared, a new entity that will offer wholesale, mobile broadband services in three formats: terrestrial-only, satellite-only and terrestrial and satellite in combination. According to their press release, "LightSquared will provide wireless broadband capacity to a diverse group of customers, including retailers; wireline and wireless communication service providers; cable operators; device manufacturers; web players; content providers; and many others." In late July, Nokia Siemens Networks announced it will build the Harbinger Capital Partners' network in an eight-year deal valued at $7 billion.

These announcements dovetail with the aggressive buildout commitments offered by Harbinger and included as conditions in the FCC's Order, adopted earlier this year, approving Harbinger's acquisition of SkyTerra.

For more information please contact Douglas Jarrett at 202-434-4180 or jarrett@khlaw.com