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AT&T and Verizon To Continue 5G Rollout Despite Concerns From The Airline Industry

by Iesha
January 4, 2022
Reading Time: 3 mins read
0
5G Networks

twenty20

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AT&T Inc. and Verizon Communications Inc. are pushing ahead with their 5G rollout plans, but a legal fight over the phone industry’s new use of airwaves is expected.

As early as January 5, carriers intend to launch their new 5G services, defying a request from U.S. transportation officials, who say the signals could interfere with aircraft electronics. In the absence of court or federal intervention, the services are about to begin, with potentially unpredictable effects on air travel.

The airwaves purchased by the wireless companies for more than $80 billion last year are at question. According to airlines and jet manufacturers, these so-called C-band frequencies are close enough to signals used by radar altimeters on flights to potentially interfere with landings. There is enough separation, according to wireless providers.

While still pushing for a 5G debut, wireless providers suggested on Sunday that they may impose exclusion zones around airports, similar to those used in France. They would put off putting C-band transmitters for six months in such locations.

As part of the offer, the airline industry and the wireless industry agreed to work together and not escalate the dispute.

“AT&T and especially Verizon paid dearly for their C-band spectrum and are rightfully upset at the fact that the government is essentially trying to renegotiate the deployment,” said John Byrne, an analyst at GlobalData.

“As many as 345,000 passenger flights” could be affected if carriers proceed with the 5G launch as planned.

The fight could go in a variety of directions:

  • The airline group could accept the six-month pause and work out network power levels and altimeter equipment safeguards.
  • The Federal Aviation Administration could reject the compromise and issue an emergency request to the FCC to delay the 5G launch.
  • The FAA or the Transportation Department could file a motion, as early as this week, in court seeking a stay to prevent the launch of the C-band service.

According to a note released Monday by New Street Research, Blair Levin, a former lawyer at the FCC, has noticed a progressive de-escalation of the issue in recent weeks. For example, the airline industry’s fear of a “massive” flight cancellation has now been measured at 4%.

The aviation industry has requested that the FCC postpone the implementation. They’ll take it to the courts if that isn’t accepted, Levin added.

Levin wrote, “The action will be confusing but we feel confident that the result of all the actions will be, at worst, a nonmaterial short delay.”

The wireless carriers are also likely to see limited damages, according to a note published Monday by Bloomberg Intelligence analyst Matthew Schettenhelm.

“We would view the filing of any lawsuits as efforts to improve leverage in negotiations rather than as severe threats to the carriers’ C-band investments,” Schettenhelm wrote.

In addition to the $80 billion spent on the C-band licenses, the carriers say the rollout is a national priority, citing the race with China for 5G and the crucial connection that proved to be vital for customers during the COVID-19 pandemic.

Meanwhile, wireless carriers are under pressure to launch C-band 5G service in order to stay competitive. Airwaves provide the capacity and speeds needed to generate new income from services like wireless home internet and semiautonomous connected vehicles.

In the 5G race, AT&T and Verizon are also chasing T-Mobile US Inc. T-Mobile has been building up these mid-band networks for over a year.

“Now’s the time to move,” said Byrne of GlobalData.

AT&T and Verizon “have concluded that they are in a strong position to push back right now and are in a rare position of alignment on an important issue for both companies,” he said.

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