Category: Wireless Carriers

Nextel kick’n ‘um on the way out…

Posted on by Dr. Jonathan L. Kramer

As you may have heard, Sprint Nextel is shuttering a substantial number of its legacy Nextel iDEN tower sites.  These sites are no longer necessary in light of Sprint decommissioning of the Nextel iDEN service and combining technologies through its grand Network Vision Project (for more on Network Vision, click here).

For impacted Nextel tower site landlords, lease terminations translate to the loss of anticipated lease income.  This is why I tell my landlord-clients that they should always view most wireless leases as being enforceable for only months on the tenant side, but for decades on the landlord side.

Getting back to Nextel’s current round of terminations, to add insult to injury Nextel has employed third-party vendors to call and ‘convince’ landlords why, on the way out, they should execute a novel “Lease Termination Agreement and General Release” document.  I first heard about this from my peer, friend and trusted colleague, Mike Ritter, Esq. of TowerSeekers, a firm specializing in serving wireless landlords in the religious and non-profit segment.

So it seems that Nextel, when terminating a lease, would prefer to save lots of money by not removing most of the equipment, wiring, conduits, cables, and other things it installs.  Removal of these items is typically required by most wireless leases, as is returning the leasehold to the landlord in the same basic condition that existing just prior to the lease.  Nextel’s preference now seems to be to abandon the equipment in place and transfer title of the abandoned equipment, with no warranties whatsoever, to the site landlord.  With the abandonment goes all of the legal liabilities, as well, which may include liabilities imposed by the local governments on Nextel, but transferred by this agreement to the landlord.

‘Just sign right  here on the dotted line and YOU get to take on all of OUR discarded stuff and legal risks, and you save us a boat-load of money, too!‘ is just one way to think about this proposed deal.  Such a deal!

What’s even better is that BlackDot suggests in writing–but does not guaranteey–that they can find a replacement carrier quickly because these decommissioned sites will be “plug and play” solutions for other carriers…IF…the landlord will give up a 25% commission for the life of the revenue stream BlackDot can negotiate. Such a better deal!

‘Plug and play?’  Huh?   I’m a radio frequency engineer as well as an attorney. I don’t think much of the pitch is remotely believable.  By the way, if you’re interested in this deal, give me a call: I have a famous New York bridge for sale that’s priced for quick sale.

Take a look at a redacted copy of the Agreement document, here’s one.   If you’re half-a-lawyer, you’ll see why this deal is no deal at all.

If you are a Nextel landlord and you’ve received a notice of termination (as have some of my clients), go back and pull out your lease documents, including amendments.  Look at the termination terms and restoration terms.  (They may be in several places in the lease.)

Even if you don’t get the follow-up sales pitch call to do the exit agreement, do talk with your attorney.  If you don’t have one, I happen to know of some good ones!  Just call me on 310-405-7333, or give Mike a call on (760) 917-1123.

Jonathan

 

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Sprint Moves to Meter Data Services

Posted on by Dr. Jonathan L. Kramer

It looks like Sprint is moving to charging for data by the MB.

The first step Sprint has taken is to kill its unlimited mobile hotspot and tethering plans. Now, unlimited for Sprint’s formerly unlimited users, this means up to 5GB per month.  Then Sprint ‘drops the flag’ and start the meter running at 5 cents per MB after the first 5GB.

On Sprint’s web site (on June 9, 2012) , this is how they qualify their basic “Truly Unlimited Data”:

“Voice/Data Usage Limitation: Sprint reserves the right, without notice, to deny, terminate, modify, disconnect or suspend service if off-network roaming usage in a month exceeds (1) voice: 800 minutes or a majority of minutes; or (2) data: 300MB or a majority of KB. Prohibited network use rules apply. As advertised and notwithstanding those restrictions, engaging in such uses will not result in throttling (limiting data throughput speeds) for customers on unlimited-data-included plans for phones, but could result in other adverse action.”

Gads! “…could result in other adverse action.” Huh?

Anyway, it seems clear that the days of Sprint’s truly unlimited data services are, well, limited.

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Sprint(ing) Forward to 800 MHz LTE

Posted on by Dr. Jonathan L. Kramer

The FCC has granted Sprint’s request to allow it to deploy LTE services in its 800 MHz band assignments.

This is a big deal, both for Sprint and for LTE deployment as the de facto 4G-ish standard.

The FCC’s decision (found HERE) allows Sprint to re-purpose its Nextel 800 MHz spectrum (the old iDEN band) and bond it with Sprint’s 1900 MHz spectrum to create a ‘super LTE’ channel (my term, not theirs).  Mathematically, this is represented by the complex formula:

zoom(800,000,000hz) x zoom(1,900,000,000hz) = ZOOM(WOW)MBs

Okay, maybe that’s not a legit math formula, but you get the idea.  Bonding two high speed data bands is better than having two stand-alone high speed data bands.

This is a huge deal for Sprint as it continues to decommission its old Nextel iDEN services and sites as it deploys its Network Vision project.  Network Vision is Sprint’s ‘one-box-does-all’ base station solution that allows it to communicate on multiple bands and using multiple signal protocols for both itself, and for electronic collocators it will charge to deploy on its upgrade cell sites.

For the LTE community, the Commission’s decision signals its intent to relax the existing technical rules that current prevent deployment of 4G-ish services in the cellular and ESMR bands.  AT&T and Verizon will likely be even happier than Sprint by the ruling as it will give those firms a legal path forward to phase ultimately out cellular on 860 MHz and bond LTE with their other band assignments, especially 700 MHz.

(Bonding 700 MHz and 800 MHz services makes a lot of technical sense as the signal propagation of those two bands is similar, where the propagation of bonding 800 MHz to 1,900 MHz are dissimilar.)

For LTE-supporters, the Commission’s ruling is a much clearer path forward for dominance of that communications scheme given that the Commission’s door-opening will make LTE and LTE band-bonding even more important.

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LightSquared files for Bankrupcy (Chapter 11)

Posted on by Dr. Jonathan L. Kramer

     To the surprise of very few, LightSquared has filed for Bankruptcy protection under Chapter 11.

Given that the firm has virtually no path forward to use its frequencies to provide 4G-type services in light (no pun intended) of the apparently unresolvable GPS interference issues, Chapter 11 gives LightSquared a way to step back and see what it can salvage of their operations.

In a Chapter 11 bankruptcy proceeding, in most cases, the debtor remains in control of its business and operations as a “debtor in possession.” The day-to-day operations are subject to the oversight and jurisdiction of the federal court (and typically the trustee). The goals of a Chapter 11 proceeding is for the company to find the cash to emerge from bankruptcy having paid its creditors some portion of the amount due, cancelling or renegotiating some contracts, and then resuming normal operations after completing the bankruptcy.

It seems pretty clear to me that the $9B contract LightSquared entered into with Sprint will be a target for cancellation.  That will place even more pressure on Sprint to fund its Network Vision project.

A Chapter 11 bankruptcy proceeding is is very different from Chapter 7 proceeding.

In a Chapter 7 bankruptcy action the business ceases its regular operations.  The court-appointed trustee sells off all of the business’s assets and distributes the sale proceeds to the creditors. If there’s any money leftover after all the creditors are paid, that balance is returned to the owners/shareholders of the bankrupt company, and the company ceases to exist.

Sometimes a firm starting out on a Chapter 11 bankruptcy path can still end up shutting down.  It would not surprise me if that’s the case with LightSquared, especially if they are forced to sell off their licensed frequencies.

Time will tell.

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If the Tower Doesn’t Grow, Can Municipalities Say No?

Posted on by Dr. Jonathan L. Kramer

John Pestle of Varnum and I have been invited to speak on  this month’s T-Mobile’s National External Affairs Headliner Speaker Series.  This is a monthly conference call/webinar with hundreds of internal and external T-Mobile executives, managers, line-level staff, and outside contractors.

The title of our lecture, thought up by T-Mobile, is “If the Tower Doesn’t Grow, Can Municipalities Say No?”

The conference call is scheduled for Wednesday, April 25th at 11am PST/2pm EST.

If you’re invited, you should already have the call-in information.  If not, you’ll have to contact External Affairs to get it.

This should be fun!  I have lots of slides to share.

Heck, I’ve always wanted to be a headliner!

(Added 4/23 at 8:50 a.m. PDT: I’ve received several questions asking if non-T-Mobiler’s can sit in on the call.  The answer is that I wish I could say yes.  This is a closed webinar, so you’ll have to ask your contact at T-Mobile External Affairs whether you can join in. -jlk)

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Might Apple buy Sprint?

Posted on by Dr. Jonathan L. Kramer

Okay, it sounds wild, but let’s look at this for a bit…

Sprint has committed $15B to Apple in connection with securing rights to market the iPhone to Sprint’s subscribers (let’s not talk about the newest Apple product, the iHeatingPad). That’s a lot of cash, and I’ll bet that Apple’s contract leave virtually no room for Sprint to get out from under the weight of an 800 pound Apple.

At the same time, the $9B Sprint was expecting from LightSquared seems to drifted away. This raises very serious questions about the future of Sprint’s touted Network Vision upgrade. As a result, Sprint’s plans to shutter some 30,000 cell sites, relying on the Network Vision project to make it possible…must have dropped to ‘maybe’ status, too.

Clearwire. That word has turned into a blackhole of cash for Sprint, and Google just helped further devalue Sprint’s, ah, majority investment by dumping the Google-held shares at a 90% write off. WiMax is not Sprint’s path forward–LTE is. Clearwire may be too late to Sprint’s party.

Sprint’s Board of Directors last month vetoed Dan Hesse’s plan to buy MetroPCS (for a 30% premium, no less). That puts Dan Hesse’s future outlook at Sprint at a 30% deficit (others say that number is even worse). Will there be new blood on the head of the pin, much less new confusions over the direction the pin is pointing? Hey, how about T-Mobile buying MetroPCS?

This month, Sprint seems to have tried…and failed…to get a network sharing agreement with T-Mobile, according to the Wall Street Journal. I guess that shots a hole in my idea about a SprinT-Mobile merger.

Let’s not forget the grandest of Sprint’s Grand Experiments: Nextel. Oh, you want to forget about that? Likely Sprint does, too.

With research firm Sanford Bernstein dropping its rating on Sprint, citing that Sprint might visit BK land, the Bad News Band keeps marching on. For a thoughtful look at this particular issue, see the SeekingAlpha story of March 20th by clicking here.

Now let’s consider Apple.

Apple has attained the status of a ‘mythical creature’ that can seemingly devour all that blocks it path.

Apple has been fanatical about controlling, to the n-th degree, every element of its users experiences with all of the Apple devices. It controls the look and feel of the user experience, and via the App Store all of the applications on iPhones that have not been subject to a jailbreak, as well as iPads of various operating temperatures.

It must peeve Apple that it decided to confine its iPhone and iPad devices originally on an exclusive basis to AT&T to run on that carrier’s less-than-robust and less-than-adequate-capacity network, and one that actually gave up spectrum in the failed T-Mobile love affair.

Now, at least, Verizon subscribers have a better chance at being able to enjoy close to 3G speeds with their iSomethings.

Oh, yes, there’s that cash reserve thing for Apple. It’s sitting on more cash than the U.S. Treasury, and since last Summer it has been the most valuable company you’ll find in the U.S., and maybe anywhere in the entire galaxy.

If Apple thinks about it, it can have its cake and eat it, too: Buy Sprint, fund and complete Network Vision, deploy 4G at real 4G speed, and dump all of the Sprint phones save for Apple iSomethings. Using the software defined radios of Network Vision, Apple can actually build a wireless network that is optimized for data (but still including the voice app that defines LTE). Siri may be the first step to Skynet, albeit with a programmed sense of humor. (How much wood can a woodchuck chuck? See here.)

For Apple, a Sprint purchase would yield it monthly cash flow that can be put back into expanding and optimizing the “Apple Wireless” Network Vision. And given Sprint’s majority ownership in Clearwire (and the 106ish MHz Clearwire controls in the U.S.), Apple would have a real playground to expand data capacity and speeds.

Maybe Apple might make apply the principles of the iTunes Store to Sprint to shift the marketing of Sprint services to the faceless online monolith. Buy a phone and activate service online. Forget about pins dropping.

It just seems right for Apple to continue its quest to control everything its users see and do with the iSomethings now and in the future by controlling its own data delivery network. At the same time, it can keep feeding iSomethings to Verizon, AT&T, and any other carrier that can’t afford to be left in Apple’s iDust.

With the passing of Steve Jobs, the direct minutia-level control he seemed to exert on Apple (at least according to Isaacson) has also passed. This may free up the current management of Apple to take the leap (no, not Leap Wireless) to controlling even more of the user experience, but from a new distance, all without asking “WWSD?”

Of course, Apple might buy T-Mobile instead–or as well–and do more or less the same thing, but that’s a thought best left for a future post.

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Why not WiMax, Sprint? Oh, it’s LTE. Got it.

Posted on by Dr. Jonathan L. Kramer

Sprint, whose original “4G” network was to be built on a WiMax platform, is moving to deploy an LTE network in place of WiMax. This means that Sprint is currently running 2 types of “4G” technology on its network, LTE and WiMax.

The problem with WiMax is that its availability is limited and its performance, when compared to LTE, is not lighting fast. It’s just DSL fast and we all know that isn’t really that fast. Another limitation of WiMax is the farther you get from the node the slower the network speed. Who wants slower speed?

Is Sprint ditching its WiMax partner? It appears so.

The big push to deploy LTE seems to be a result of pressure from Sprint’s consumers rather than a big difference in the technology. I mean, all the other big time providers are deploying LTE, why can’t Sprint’s customers have LTE?

WiMax might still have viability in other platforms like broadband internet access as a landline bypass, as cable or satellite TV bypass, or for providing some limited backhaul services.

One thing that seems almost certain, is that WiMax viability as a mobile telephone provider is waning as LTE is becoming the next go to technology for high speed mobile data.

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As LightSquared Fades, What of Sprint?

Posted on by Dr. Jonathan L. Kramer

As you likely know, the NTIA’s Assistant Secretary for Communications and Information, Lawrence E. Strickling  gave LightSquared a big, fat, wet Valentine’s day kiss when he wrote to FCC Chairman Genachowski saying, “…we conclude that LightSquared’s proposed mobile broadband network will impact GPS services and that there is no practical way to mitigate the potential interference at this time.”

You can read the full letter, which goes downhill from the quote above, by clicking on this link:  NTIA Letter to FCC Regarding LightSquared: Feb. 14, 2012.

While everyone else is talking about LightSquared, I’m wondering about the impact of the likely LightSquared disappearance from the arena on Sprint.  Just last June, Sprint and LightSquared announced that they had entered into a 15-year agreement for Sprint to promote LightSquared as its 4G solution (hey, does anyone remember a company called ClearWire who was promoted by Sprint to be its 4G solution?  I’m just ask’n…).

Under the Sprint deal, LightSquared was to pay $9 billion dollars and give Sprint another $4.5 billion in credits for LTE and satellite services.  Shortly thereafter, Sprint kicked the Network Vision project into high speed.

Side note 1: Network Vision, for those of you who have not yet seen the vision, ahem, is Sprint’s project to replace its BTS cabinets that do one thing on one band with shiny new BTS cabinets that can be easily adapted to provide multiple services on multiple bands at the same time.   That’s actually a smart thing from an engineering perspective, but it sure looks like Sprint was betting on LightSquared’s payments to fund a good portion of Network Vision.

Side note 2: The Network Vision project is connected with Sprint’s recently-announced plan to shutter 30,000-ish of its current leases as the new multiband BTS cabinets go in.  Shuttering that many site leases should save Sprint something on the order of $400 million per year, and make cell site landlords wary of entering into new leases that don’t have early termination fees (huh? Your lease doesn’t?  Too bad; so sad.)

So, what’s next for Sprint?  Certainly it has wisely given up on WiMax as a real, long term 4G solution.  It looks like everyone agrees that LTE is the real answer, so the sinking of LightSquared’s ship is hardly likely to re-float ClearWire’s boat in Sprint’s eyes (or any other sets of eyes for that matter).  Since Sprint recently missed out on the “Buy Your Next Band From The Cable TV Guys” deals, its even farther down the spectrum rabbit hole.  Sprint needs frequencies, and it needs them last week.

This brings me full-circle back to an earlier blog post, from last September, when I mused on the idea that Sprint and T-Mobile would make a mighty fine look’n couple, and I even worked up a possible wedding announcement:

See: SprinT-Mobile?

T-Mobile has kept a nice dowry of cash (and better, spectrum) from when the DOJ forced AT&T to leave T-Mobile at the alter.  So like Sprint, T-Mobile has a pressing need to get married.  If not to each other, then to others, but marriages are on the horizon.

See you at the wedding(s).  I’ll be at the bar.

Jonathan

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Text the U.S.A. From (the Backseat of) Your Chevrolet

Posted on by Dr. Jonathan L. Kramer

Not only can OnStar (the in-vehicle mobile phone system) unlock your car doors, tell you where to go, help you deliver a baby, and propose to your girlfriend, soon, OnStar will also pull up your favorite movies as well as text your mother, all at the same time.

OnStar is showing off its new navigation and entertainment system called CUE, which will consist of a large touch screen in the center of the dash, in the backseat, or maybe even embedded as a heads-up display in the windshield (no, not really – as far as I know the technology is only available in the movies).

CUE is being positioned to work much like an iPhone or any other touch screen SmartPhone.  In fact, OnStar has plans to open up its application programming interface (API) software so that third-party developers can create new apps for CUE.  (When visiting the ‘CUE Store’ does one need to actually drive there?)  In the same vein, CUE will be built on a software upgradeable platform that will use soft keys on-screen to access apps, movies, maps, your cup of java (well, at least order it, anyway).

How great would it be to turn your car into an iPhone?  Let’s not worry about drivers playing Angry Birds on their way to work, for now anyway.

As all early iPhone adopters have learned, a great device needs a fast and reliable network (thanks to AT&T for that often frustrating lesson). OnStar is NOT going down that same road.

In a vote of confidence to both its speed and overage, OnStar is heading to a deal with Verizon to use Verizon’s shiny new, if still not completely reliable, LTE network (see http://gigaom.com/broadband/verizon-explains-its-string-of-lte-outages/).

The speed of Verizon’s LTE network will be important for the navigation functionality of CUE to deliver real time high resolution maps that will make the DVD driven and stand alone navigation systems obsolete.

Expect CUE to also provide destination photos, and linked web content.  Going to a restaurant? See their menu on the way, and order your appetizers before you arrive.

Coming soon to a new Cadillac near you!

In a couple of years, it’ll migrate down to your Chevrolet.

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