Wireless Telecommunications

Charter Communications reported financial and operating results for the three and six months ended June 30, 2024. Charter had 29.6 million residential customer relationships, excluding mobile-only relationships.

A new broadband trend has quietly entered the market. Both Starlink and T-Mobile are advertising broadband that can be used practically anywhere and are aiming new products at campers, hikers, and others that go to remote locations. According to T-Mobile this is a huge market, with 15 million households that take RV trips each year and 59 people who go camping. T-Mobile says that 40% of these folks would like to be able to do some work while camping.

To hear well-known Wall Street analyst Craig Moffett tell it, Verizon spent a mind-boggling $52 billion on C-band spectrum which “isn’t very good” and fixing its 5G coverage problem is going to require even more money—“lots of money.” That was one of the hottest and most publicized take-aways from Verizon’s Q2 earnings call. While Moffett described Verizon’s overall wireless Q2 results as “fair,” the gist of his report focused on “Verizon’s C-band problem,” one that he said will take a whole lot of densification to rectify.

US senators wrote to Jonathan Kanter, Assistant Attorney General for the Antitrust Division of the Department of Justice (DOJ) and Jessica Rosenworcel, Chair of the Federal Communications Commission (FCC), urging them to closely scrutinize T-Mobile’s proposed acquisition of UScellular. Since T-Mobile acquired Sprint in 2020, just three carriers have dominated the national mobile wireless service market.

In a ruling that quickly caused shock waves in the U.S. telecommunications industry, the Fifth Circuit Court of Appeals ruled, 9-7, that the Universal Service Fund (USF) is unconstitutional as currently administered. The Court explained its ruling by saying that the USF is a “misbegotten tax” that violates Article I, § 1 of the Constitution, which states that all legislative powers are given to Congress, which is made up of the Senate and the House of Representatives.

After the Fifth Circuit ruled, 9-7, that the Universal Service Fund is unconstitutional as currently administered, we've seen the following responses.

With the increase of 5G phones and network technology, wireless customers are experiencing fewer problems according to the J.D. Power 2024 U.S. Wireless Network Quality Performance Study—Volume 2. The reduction of problems has led to improved consumer perception of reliability and increased network quality satisfaction. Highlights from the study include:

T Mobile said it entered into a definitive agreement to establish a joint venture (JV) with the investment firm KKR to acquire Metronet as the company aims to increase its fiber solution offer to U.S. consumers. The wireless broadband provider expects to invest around $4.9 billion to acquire a 50% equity stake in the joint venture and 100% of Metronet’s residential fiber retail operations and customers. The JV will also acquire Oak Hill Capital’s existing stake.

A report detailing the cause and impact of a nationwide AT&T wireless service outage on February 22, 2024, that lasted at least 12 hours and prevented customers from using voice and data services, including blocking more than 92 million phone calls and more than 25,000 attempts to reach 911. Key findings include:

Comcast revenue decreased 2.7% compared to the prior year period. Earnings per Share (EPS) decreased 1.3% to $1.00. Capital Expenditures decreased 8.1% to $2.7 billion.