Spectrum

As the midterms approach, the White House may resurrect earlier proposals to overhaul the corporate tax program. One component, sometimes called the “Amazon tax,” would impose a 15 percent minimum tax on large corporations’ book income (the income reported to investors on financial statements) rather than taxable income, to ensure all companies pay each year. This impulse may seem egalitarian, but because of a quirk in accounting rules governing spectrum licenses, this proposal disproportionately harms wireless companies and could deter broadband buildout.

The biggest story in tech this week is without a doubt Elon Musk’s deal to buy Twitter for $44 billion and to take the company private. And while that deal doesn’t touch directly on wireless or wired telecom networks, there are some connections related to the Federal Communications Commission, spectrum and telecom policy. First, no one is suggesting that the deal won’t happen. New Street Research policy analyst Blair Levin said there aren’t any big antitrust issues. It would be different if a social media competitor, such as Meta, were trying to buy Twitter.

Judging by what T-Mobile executives have shared publicly, the integration of Sprint into the T-Mobile sphere is going swimmingly. But if you’re the Communications Workers of America (CWA), the whole thing stinks. T-Mobile said it plans to finish transitioning all Sprint customers to the T-Mobile network over the next few months. The company also is on track to upgrade or decommission substantially all Sprint sites in 2022.

The Federal Communications Commission voted to open a proceeding to explore options for promoting improvements in radio frequency (RF) receiver performance, including through use of incentives, industry-led voluntary approaches, FCC policy and guidance, or regulatory requirements.

Federal Communications Commission Chairwoman Jessica Rosenworcel responded to letters by members of Congress inquiring about the FCC's spectrum auction program. In separate letters to House Representatives and Senators, Rosenworcel responded to questions about related topics including upcoming spectrum auctions, specific frequencies that may be good candidates for auction, and policy changes the agency can make to improve the program.

Given T-Mobile’s recent history of arguing for more licensed spectrum, it’s easy to forget how much unlicensed spectrum plays into its overall strategy. But a recent application before the Federal Communications Commission serves as a reminder of that. T-Mobile is asking for special temporary authority (STA) to operate on spectrum in the 6110-6190 MHz portion of the 5925-7125 MHz (6 GHz) band in and around the areas of Alexandria and Falls Church (VA).

T-Mobile leases much of its 2.5 GHz spectrum from educational institutions around the country. And the carrier has made great efforts to keep the terms of these Educational Broadband Service (EBS) leases private. For instance, it is engaged in a dispute with Christian College of Georgia and demands that the college not reveal the terms of its lease.

On April 12, Dish Network sent a letter to Federal Communications Commission Secretary Marlene Dortch urging the Commission to reconsider its Rural Digital Opportunity Fund (RDOF) award to SpaceX's Starlink. Dish said, "SpaceX cannot credibly claim that it will be able to fulfill its obligations under the Rural Digital Opportunity Fund auction rules." The company included four studies in the letter that it states show SpaceX would violate the conditions for using the 12 GHz band for RDOF.

The Federal Communications Commission’s upcoming 2.5 GHz spectrum auction is generating some excitement among smaller rural US operators because of the FCC’s decision to offer flexible-use, county-based overlay licenses. The auction, which will start July 29, will be for licenses in the 2.5 GHz band where no one currently owns the spectrum. Top executives at several smaller operators have said that they were encouraged by the FCC’s format for Auction 108 because it will be amenable to rural operators.