Money is piling up in the US 24 GHz auction

Over 30 companies have put more than $560 million in bid money on the table at FCC’s auction for the 24 GHz frequency. And this is only the beginning.

Following the underwhelming auction of the 28 GHz (dubbed Auction 101) spectrum, which only returned $703 million, the new auction of the 24 GHz (dubbed Auction 102) is heating up quickly. The auction started last Thursday and has gone through 11 rounds of the first phase of the auction, or the “clock phase”, when participants bid on a Partial Economic Area (PEA) blocks. By the end of round 11, the gross proceeds have reached a total amount of $563,427,235. There are still two days, or six more rounds to go, before the winners can move to the next phase of the process.

The “assignment phase” will allow the winners from the first phase to bid for specific frequency licence assignments. The total bid value for the 24 GHz frequencies could go up to between $2.4 billion and $5.6 billion, according to the estimate by Brian Goemmer, founder of the spectrum-tracking company AllNet Insights & Analytics, when he spoke to our sister publication Light Reading.

The key difference the has driven up the interest from the bidders for Auction 102 is the locations where the frequencies are made available. While major metropolises like New York, Los Angeles, or Chicago, were absent from 28 GHz auction, they are all on the current 24 GHz auction together with other major cities that would be the candidates for the 5G services to roll out in the first wave.

Bidders have included AT&T, Verizon, T-Mobile, Sprint and more than 30 other companies. The FCC will announce the winners including those from Auction 101 only after both phases of Auction 102 are completed.

In addition to bidding for mmWave frequencies, operators like AT&T are also actively refarming the lower frequency bands in their possession that are used to provide 3G services. AT&T sent a notice to its customers in February that it will stop 3G only SIM activation, urging customers to move to LTE. The company said “we currently plan to end service on our 3G wireless networks in February 2022.” Specifically the company is planning to refarm the 850 MHz and 1900 MHz frequency bands, saying “it may be necessary for us to turn down one band of our owned and operated 3G network, such as 1900 MHz or 850 MHz service”.

Considering the AT&T only switched its 2G networks off at the beginning of 2017, this is a clear sign that the generational transition of mobile telecom services is accelerating. Earlier in the middle of last year, Verizon confirmed that it will shut down its 3G CDMA networks by the end of 2019. Even earlier at the MWC in 2017, T-Mobile’s CTO Neville Ray said the company was looking to sunset both GSM and WCDMA.

América Móvil strengthens its position in Brazil with Nextel acquisition

The Latin American mobile heavyweight América Móvil has agreed to acquire its competitor Nextel in the Brazilian market for $905 million.

Shortly after the deal was announced by América Móvil on Monday, and the board of NII Holdings, which owns 70% of Nextel, announced that it would propose to the shareholders to accept the offer. The other 30% of Nextel is owned by AI Brazil Holdings, the local operation of Access Industries, an American private company whose portfolio includes natural resources, telecoms, internet services, as well as Warner Music, among other media interests.

The nature of the deal, “cash free / debt free”, will let NII and AI Brazil keep all the cash while América Móvil will not assume Nextel’s debts. Although the total transaction value is less than 1.5 times of Nextel’s annual revenues in 2018 ($621 million), it represents almost four times NII’s market capitalisation on its latest trading day on NASDAQ ($229 million), indicating the buyer’s relatively strong confidence in the business prospect.

Brazil is a highly competitive market. According to research by Ovum, by Q4 2018, Vivo (owned by Telefónica) led with one third of the total mobile market, while TIM and Claro (América Móvil’s existing operation in Brazil) were vying for the second place, each serving about a quarter of the total mobile subscribers. Nextel had slightly over 1% market share. The rest of the market is served by Oi (a JV between Altice Portugal, formerly Portugal Telecom, and Telemar, Brazil’s largest integrated telecom operator).

After the acquisition, América Móvil plans to combine Nextel with Claro to “consolidate its position as one of the leading telecommunication service providers in Brazil, strengthening itsmobile network capacity, spectrum portfolio, subscriber base, coverage and quality, particularly in the cities of São Paulo and Rio de Janeiro, the main markets in Brazil.”

For NII, selling Nextel in Brazil represents the end of an era. The company once operated mobile services in multiple North and Latin American markets, including the eponymous professional radio service in the US, which was later acquired by Sprint. Brazil is its last operation, where it has been struggling in a classic four-operator market. Not only has it not been able to break into the leader group, but also seen business declining fast. The revenues in 2018 were a 29% decline from 2017 ($871 million), which itself was a 12% decline from 2016 ($985 million).

“The announcement of this transaction marks the culmination of an extensive multi-year process to pursue a strategic path for Nextel Brazil and provides our best opportunity to monetize our remaining operating assets in light of the competitive landscape in Brazil and long-term need to raise significant capital to fund business operations, debt service and capital expenditures necessary to remain competitive in the future,” said Dan Freiman, NII’s CFO. Earlier potential buyers included Telefónica Brasil, Access Industries (NII’s JV partner), though the most concrete case was TIM, which, according to Reuters, approved a non-binding offer in November last year. None of these negotiations has come to fruition.

“Management and our Board of Directors believe the transaction is in the best interest of NII’s stockholders,” Freiman added.

FCC casts an eye north of 95 GHz

The FCC has unveiled plans to create a new regulatory framework for spectrum above 95 GHz.

While these bands have largely been considered outside the realms of usable spectrum, progress in radio tech has made the prospects much more realistic. And, dare we say it, such a regulatory framework could begin to set the foundations for 6G…

“Today, we take big steps towards making productive use of this spectrum,” said FCC Chairman Ajit Pai. “We allocate a massive 21 gigahertz for unlicensed use and we create a new category of experimental licenses. This will give innovators strong incentives to develop new technologies using these airwaves while also protecting existing uses.”

The Spectrum Horizons First Report and Order creates a new category of experimental licenses for use of frequencies between 95 GHz and 3 THz, valid for 10 years. 21.2 GHz of spectrum will also be made available for use by unlicensed devices. The team envision usecases such as data-intensive, high bandwidth applications as well as imaging and sensing operations.

With this spectrum now on the table, the line between science fiction and reality could begin to blur. Data throughput rates will become almost unimaginably fast, meaning computational power in the wireless world could start to replicate the kind of performance only seen in human brains.

“One reason the US leads the world in wireless is that we’ve moved quickly to open-up new spectrum bands for innovative uses,” said Commissioner Brendan Carr. “We don’t wait around for technologies to develop fully before unlocking spectrum so that entrepreneurs have the incentives to invest and experiment.”

While such a statement suggests the FCC is doing a wonderful job, flooded with foresight, the industry tends to disagree.

In 2017, the mmWave Coalition was born. Although this is a relatively small lobby group for the moment, it does have some notable members already including Nokia and Keysight Technologies. This group has been calling for a regulatory framework above 95 GHz for 18 months, pointing to developments around the world and stating the US risks falling behind without amendments.

A good example of other initiatives is over in Europe, where the European Telecommunications Standards Institute (ESTI) has created the ISG mWT working group which is looking at how to make the 50 GHz – 300 GHz band work. This group has already been running trials with a broad range of members including BT, Deutsche Telekom, Intel, InterDigital and Qualcomm.

While the US is certainly taking a step in the right direction, it would be worth noting it is by no-means the first to get moving beyond the 95 GHz milestone. Europe is leading the charge at the moment.

However, Commissioner Jessica Rosenworcel believes the FCC is being too conservative in its approach.

“I believe that with these way-up-there frequencies, where the potential for interference is so low, we should flip the script,” said Rosenworcel. “The burden should be on those seeking exclusive licenses to demonstrate the interference case and justify why we should carve up an otherwise open space for innovation and experimentation.”

Rosenworcel points to the incredibly short-distance this spectrum will offer, as well as the creation of new antenna designs, like quasi-optical antennas, to ensure efficiency. With the shorter distance and better control of the direction of signals, interference does not pose a threat and therefore an unlicensed approach to spectrum should be prioritised.

Commissioner Michael O’Reilly is another who also supports this position.

“While I strenuously advocate for both licensed and unlicensed spectrum opportunities, I understand that it may be a bit premature to establish exclusive-use licenses above 95 GHz when there is great uncertainty about what technologies will be introduced, what spectrum would be ideal, or what size channel blocks are needed,” said O’Reilly.

Both of these messages effectively make the same point; don’t make assumptions. Taking the same approach to spectrum allocation will not work. The traditional approach of licensed spectrum allocation is perhaps unnecessarily rigid. It might be necessary in the future but granting innovators freedom in the first instance would provide more insight. Perhaps it would be better to react to future developments than to try and guess.

“Better that than being forced to undo a mess later,” said O’Reilly.

While it is of course encouraging the FCC is taking such a long-term view on industry developments, the team needs to ensure it does not over-complicate the landscape right now with unnecessary red-tape. Future regulation needs to protect innovation and grant the freedoms to experiment; a light-touch regulatory environment needs to blossom.

A post-Brexit Ofcom worries us – Vodafone

With the anti-China rhetoric dominating the headlines in recent months, Brexit chatter has become unfashionable. But with the deadline fast approaching, what will Ofcom look like in the future?

Speaking at a breakfast briefing in London, Vodafone UK Chief Counsel and External Affairs Director Helen Lamprell let loose on the UK regulator. Cell tower height, rural roaming, potential reintroduction of international roaming charges, dark fibre and auction dilemmas, there seemed to be a lot of venting going on.

“The UK remains a challenging environment [regulatory], one of the most challenging in the world,” said Lamprell. “But we are seeing positive change.”

The issue which Vodafone is keeping an eye-on is Brexit. According to Lamprell, Ofcom is one of the most conservative regulators throughout the bloc, though when it is freed from the tethers of the Body of European Regulators for Electronic Communications (BEREC), there is a risk it could become even more so.

There isn’t necessarily one massive bugbear from the telco, but several little aggravations which all combine to a much larger nuisance. Let’s have a look at mast height to start with.

Everyone wants signal, but no-one wants towers

As it stands, UK cell towers are limited to 25 metres in height. This obviously doesn’t take into account those masts which are placed on the top of buildings, just the actual structure itself. In most cases, this doesn’t have a massive material impact on operations, such is the population density of the UK, but when you look at countryside locations it becomes a much larger discussion.

Part of the up-coming 5G spectrum auctions will place coverage obligations on telcos. This is a reasonable request by the government, as telcos have shown they will not bridge the digital divide on their own, though as it stands 99% of the UK population is currently covered. Geographical coverage is no-where near this figure, though as there is little commercial gain from providing coverage to these remote locations, reaching the 90% objective is difficult.

One way which this could be done is by providing exemptions to the 25-metre limit in certain situations, such as the countryside, as CTO Scott Petty pointed out, for every 10-metres you go up the coverage ring is doubled.

All four of the major UK MNOs (EE, O2, Vodafone and Three) are meeting with the Department of Digital, Culture, Media and Sport (DCMS) this afternoon, and this will be a point on the agenda. Should these exemptions be granted, it opens the door for shared infrastructure also, as the main cost of these structures is civil engineering and construction, not the equipment on the tower. Both of these developments combined would aid the telcos in reaching the geographical coverage objectives.

This brings us onto another interesting point raised by Lamprell, rural roaming.

My restless, roaming spirit would not allow me to remain at home very long

“Rural roaming takes away our incentive to invest,” Lamprell said. “It’s a really, really dumb idea.”

Three are one of the companies pushing for rural roaming, but as the Vodafone team points out, it is the only MNO which hasn’t built out its rural infrastructure. However, should rural roaming be introduced it would cause a stalemate for investment.

As Petty points out, why would any MNO invest in its own infrastructure when it could force its way onto a competitor’s? All the telcos would be sitting on the starting line, waiting for another to twitch first, such is the pressure on the CAPEX spreadsheet column when investing in future-proofed infrastructure.

Moving onto the international roaming question, Vodafone is staying pretty agile right now. As it stands, the status quo will be maintained, though the team will react to the commercial realities of a post-Brexit landscape. Currently, as a member of the European Union, Vodafone is protected from surcharges when it comes to termination charges, though those protections will end with Brexit.

Vodafone has quite a significant European footprint, in most cases there is little to worry about, but for those territories which fall outside the Vodafone stomp, negotiations will have to take place.

There are several countries, Estonia is an example, which has higher termination rates than the UK. If the reality of a post-Brexit world is Vodafone is swallowing up too many charges from international calls/SMS/data, roaming charges might have to re-introduced in certain markets. This is all very theoretical currently however Ofcom will prevent Vodafone from replicating these charges from the European nations. Vodafone is sitting and waiting for the realities of Brexit right now, though it will not be a broad-brush approach.

“Our position today is to maintain the position we are in, but we will have to evaluate the situation at the time,” said Lamprell.

Ignore Luke, the Dark Side is great

Dark fibre. It used to be a popular conversation, but everyone seems to have forgotten about it recently.

Not Lamprell.

The focus of Ofcom over the last 12 months or so has been on opening-up ducts and poles, and while this certainly is progress, it only addresses part of the problem. Dark fibre is an aspect of the regulatory landscape which could add significant benefits to the industry but has seemingly become unfashionable.

Dark fibre, fibre cabling which is not currently being utilised by Openreach, could answer the backhaul demands of the increasingly congested networks quickly and efficiently. Mainly as it is already there. There is no need to dig up roads, apply for planning permission or procure new materials, it could be as simple as flicking a switch.

Openreach resistance and Ofcom’s aggressive focus on ducts and poles is perhaps missing a trick.

Going, going, maybe not yet

The UK is currently in somewhat of an unusual and unprecedented situation. It is one of the nations leading the world into the 5G. This is not to say it is in a podium position, but compared to the 4G era, the UK is sitting pretty.

Part of the reason for this has been early auctions to divvy up spectrum assets, however, moving forward there are some irregularities which is causing some head-scratching.

Later this year, Ofcom will kick-start another auction which will see 120 Mhz of spectrum in the 3.6-3.8 GHz bands, as well as 80 MHz in the 700 MHz band go up for sale. For both Lamprell and Petty, this auction doesn’t make sense. These are two bands which will be used for different purposes (coverage and speed) so why auction them off together.

If Vodafone had known this was going to happen back in April 2018, during the first spectrum auction, it might have altered its strategy.

“We could end up with a very fragmented spectrum situation,” said Petty.

From the team’s perspective, it seems Ofcom has only just woken up to the coverage demands of the UK government, and is using this auction as a blunt tool to meet the objectives. From an engineering perspective it doesn’t seem to make much sense to Vodafone.

“We are not happy with the rules,” said Lamprell. “But it’s rare for us all [MNOs] to be happy.”

Looking good but looking suspect

The UK is currently in a good position ahead of the 5G bonanza from an engineering perspective. With test hubs being set up around the country and telcos who are acting proactively, the UK looks like an attractive environment to invest in for R&D. It is by no-means leading the global 5G race, but it is in a healthy position.

However, political and regulatory uncertainty are a threat to this perception. The activities and culture of both DCMS and Ofcom over the next couple of months will has a significant impact on the 5G fortunes of the UK, as well as the ability to attract new talent, companies and investment.

President Trump’s unexpected ally: Finland kick-starts 6G

A few days after Donald Trump tweeted about 6G, when he was roundly ridiculed, Finland’s scientists proved that he had a point by announcing their plan at MWC 2019 to embark on the journey towards 6G.

The researchers in Finland expect 6G to take shape in about 2030. To gain the leadership by that time, the so-called “6Genesis” has been selected as the country’s flagship high-tech project for an eight-year period 2018-2026. The project is hosted by the University of Oulu, ranked a top 3 university globally in radio access engineering.

Professor Ari Pouttu, who leads the project, introduced the vision and key technology streams at the event. 6G will satisfy the expectations not yet met by 5G as well as new expectations fusing AI inspired applications with ubiquitous wireless connectivity, Professor Pouttu said. Specifically, he foresaw four technology trends that are fundamentally different from earlier generations.

“Wireless Connectivity” in 6G means disruptive radio access deployed on 5G core networks, enabling Tbps speed and deliver unmanned process. “Devices & Circuits” means that the current semiconductors will not be able to operate on super high-frequencies. When communication takes place on frequencies above 500GHz or even at terahertz level, new materials will be needed to replace silicon. “Distributed Computing” refers to moving the computing power to the extreme edge. For example, instead of conducting computing from the “brain” of the robot, in 6G environment computing will need to be moved to every limp tip of the robot to enable time critical and trusted apps. “Service & Applications” refers to the disruptive value networks enabled by multidisciplinary research across industry verticals, in contrast to the siloed approach to research and development now.

The Finnish government has already granted 6Genesis €25 million through the Academy of Finland. Five co-founders have signed up, including Nokia, VTT (Finland’s technology research centre), Aalto University, Oulu University of Applied Sciences, and BusinessOulu (local business promotional agency). The total funding of the project so far, including contribution from these partners, other national and EU grants, plus the Academy of Finland grant, amounted to €251 million. Professor Pouttu quipped, while speaking to Telecoms.com, that this amount is for science fiction, not science. He may be on the conservative side with his estimation for science fiction though. “Avengers: Infinity War”, a recent sci-fi blockbuster, cost nearly $400 million (€350 million) to make.

Improving funding is clearly one of the reasons why the project was calling for more companies and institutions to sign up. The fact that the announcement was made during MWC could only mean that global partners are also being sought after. Professor Pouttu could consider pushing a tweet to President Trump directly.

The world’s first 6G Wireless Summit will be held in March in Levi, a ski resort in Finnish Lapland.

Three UK shows off its new Nokia cloud core

Mobile operator Three UK has upgraded its network with a fully cloud-based 5G-ready core and has started internal trials of the service. It plans to launch 5G later this year.

Three announced that it is testing the world’s first fully cloud-based core network, delivered by Nokia. The software-based core network is 5G ready and is already carrying the ongoing trial for Three’s own staff. The trial is on the 3.4-3.8GHz spectrum Three bought with over £164 million in the auction concluded in April 2018.

The readiness is also achieved on the edge. Three announced that by December 2018, all its mast sites were already connected to the new cloud-based core networks, meaning when 5G is switched on all Three customers would be able to access 5G services, provided they have the 5G-enabled user devices (fixed wireless access modems, or smartphones and tablets).

Another infrastructure update Three announced is the expansion of its datacentre network. The operator used to have three datacentres in London and the Midlands. After the latest upgrade, it now has “21 data centres spread from as far North as Edinburgh to Portsmouth in the South” which are all live and “have been connected up with fibre”, said the statement. In practical terms, the more distributed datacentre network would reduce latency experienced by the users faraway from southern England, giving customers more or less equal user experience.

Indeed, “enhancing its market-leading customer experience and becoming the best loved brand in the UK by its people and customers” is the explicit target of Three’s latest network upgrading. The company reiterated its target to launch commercial 5G service later this year, after committing to invest over £2bn into 5G. “We have been planning our approach to 5G for many years and we are well positioned to lead on this next generation of technology.  These investments are the latest in a series of important building blocks to deliver the best end to end data experience for our customers,” Dave Dyson, Three UK’s CEO, said late last year.

According to the latest telecoms complaints numbers released by Ofcom in January, Three received 4 complaints per 100,000 customers, narrowly behind its mobile competitors EE and O2 (3 complaints each) but way ahead of Vodafone (8).

Ofcom eyes rural coverage for next spectrum auction

With another spectrum auction creeping up on us, Ofcom has started to throw its weight around with the terms and conditions.

While 4G and call coverage is certainly improving in the UK, Ofcom has pointed towards the difference between urban and rural environments as a concern. This is partly to be expected, denser environments are simpler places to improve connectivity and much more commercially attractive, though Ofcom has been banging this drum for a while. We’re not too sure anyone is paying too much attention.

“Mobile coverage has improved across the UK this year, but too many people and businesses are still struggling for a signal,” said Philip Marnick, Ofcom’s Spectrum Group Director. “We’re particularly concerned about mobile reception in rural areas.

“As we release new airwaves for mobile, we’re planning rules that would extend good mobile coverage to where it’s needed. That will help ensure that rural communities have the kind of mobile coverage that people expect in towns and cities, reducing the digital divide.”

Looking at the numbers, the digital divide is no-where near the same problem as faced in other places around the world, but it is present. Almost all homes and offices can get a good, indoor 4G signal from at least one operator; while 77% are covered by all four networks, up from 65% a year earlier. 91% of the UK’s geography has a good 4G mobile internet signal from at least one operator, up from 80% last year, while 66% has ‘complete coverage’ from all four operators.

These numbers are heading in the right direction, though they only tell part of the story. 83% of urban homes and offices have complete 4G coverage, the figure for rural premises is 41%, while there are some remote parts of the country where there is no coverage at all.

The next auction will take place in late 2019 or 2020, auctioning off the 700 MHz and the 3.6 GHz – 3.8 GHz bands. Although the mid-range spectrum will be the 5G prize to chase, the 700 MHz could prove useful for providing good-quality mobile coverage, both indoors and across very wide areas, including the countryside. This is where Ofcom will start throwing its weight around. The winning bids will have to:

  • Extend good, outdoor data coverage to at least 90% of the UK’s entire land area within four years of the award
  • Improve coverage for at least 140,000 homes and offices which they do not already cover
  • Provide coverage from at least 500 new mobile mast stations in rural areas

With telcos revving themselves up for every opportunity to grab as much of the valuable and limited resource as possible, Ofcom can dictate the playing field a bit. Those who want spectrum will have to play by the watchdog’s rules and start offering bufferless cat videos to farmers.

On the broadband side of things, there does also seem to be improvements. The number of homes which cannot receive 10 Mbps, the Ofcom threshold for acceptable broadband, has fallen to 2%. However, this still leaves 677,000 homes and offices without decent broadband, 496,000 of which are in the countryside. The last push for any project is always the hardest, though customers will have the universal broadband service to rely on, forcing telcos to extend their network, should they not be willing to do it themselves. This service will come into play during 2020.

On the opposite end of the scale, ultrafast broadband has improved, it’s now accessible to 50% of British homes and offices, while 1.8 million premises now have access to ‘full-fibre’ broadband. This is still very poor in comparison to other nations across Europe, though it is a step in the right direction.

Italy spectrum auction looks like a cheap bit of business – RBC

A research note from RBC, the Royal Bank of Canada, suggests Italian telcos in Italy might not have overpaid that much in the grand scheme of things.

This is not to say that the spectrum was cheap, but there is consistency is the rising price of that precious commodity around the world. Italy might have looked expensive to start with, but in comparison to other markets, it is a bit of a steal.

“Italy’s auction caught investors’ attention with a high price for Mid Band 5G,” the note states. “While operators have been quick to decry this as ‘artificial scarcity’, subsequent results appear to validate the Italian result. Sweden’s Low Band was a 22% premium to Italy; while the Australian regional 10-year Mid Band was a 32% premium to Italy’s 19-year Mid Band.”

Throughout the process, the Italian government managed to trouser €6.5 billion through various auctions, around three times more than was expected at the start of the process. It seems the introduction of a fourth MNO did wonders for the governments bank account.

That said, the Italian job might not be that expensive after all. While the 200 MHz of Mid band (3.7 GHz) which sold for €0.36 per MHz/Pop, Sweden saw 40 MHz of Low Band sell for €0.68 per MHz/Pop, 22% higher than in Italy and in Australia the 10-year Mid band licences sell for US$0.54 per MHz/Pop (US$0.56 incl tax), a 32% premium to the Italian 19-year Mid band.

Compared to previous auctions, the prices are starting to increase. South Korea’s 3.5 GHz and auction totalled $3.3bn for an average of $0.19 per MHz/Pop, while in the UK, 2.3 GHz sold for £0.08 /MHz/pop and 3.4 GHz for £0.12 /MHz/pop.

Looking forward, Germany is about to begin its mid band auctions, with the government expecting to raise between €4-5 billion, as is France. Regulator Arcep has already stated it want to try and avoid replicating the expensive prices elsewhere, promising cheaper prices in return for rollout commitments. Finally, the UK will have low and mid band auctions in late 2019.

Vodafone is thought to have the highest level of exposure to the high spectrum costs, with Germany and the UK on the radar for the firm, though RBC estimates Orange will have to write a cheque for €2.1 billion, while Telefonica will have to find more than €4.5 billion for the delayed Spanish auction and the battles in South America.

Treasury ministers will be rubbing their hands together at the prospect.

FCC sets the rules for third mmWave auction

The FCC has unveiled the rules for the next mmWave auction, set to take place in second half of 2019, for airwaves in the 37 GHz, 39 GHz and 47 GHz spectrum bands.

This will be the third mmWave auction to take place in the US, with the scrap for 28 GHz band spectrum currently underway, and the 24 GHz band auction to follow. While there are numerous different rules which will inevitably lead to squabbling, this is also the second incentive-based auction from the FCC, as the agency looks to promote contiguous blocks of spectrum.

To ensure this is a smooth process the block size will be increased to 100 megahertz across all three spectrum bands, while existing license holders will be afforded the opportunity to ‘rationalise’ their existing holdings. Whether anyone actually chooses to relinquish their assets during this process remains to be seen, though budget has been made available for compensation.

As with most other auctions, this one will take place over two phases. The first will be the pay-to-play section, before moving onto the allocation of specific spectrum.

“Pushing more spectrum into the commercial marketplace is a key component of our 5G FAST plan to maintain American leadership in the next generation of wireless connectivity,” said FCC Chairman Ajit Pai.

“Currently, we’re conducting an auction of 28 GHz band spectrum, to be followed by a 24 GHz band auction. And today, we are taking a critical step towards holding an auction of the Upper 37, 39, and 47 GHz bands in 2019. These and other steps will help us stay ahead of the spectrum curve and allow wireless innovation to thrive on our shores.”

While mmWave has been a very consistent buzzword for the telco industry over the last couple of years, industry lobby group GSMA feels there is a very good reason for this.

In its latest report, the GSMA suggests unlocking the right spectrum for to deliver innovative 5G services across different industry verticals could add $565 billion to global GDP and $152 billion in tax revenue from 2020 to 2034. For the GSMA, it’s not just about faster, bigger and better, but delivering services which the telcos are not able to today. mmWave is of course crucial to ensuring the 5G jigsaw all fits together appropriately.

“The global mobile ecosystem knows how to make spectrum work to deliver a better future,” said Brett Tarnutzer, Head of Spectrum at the GSMA.

“Mobile operators have a history of maximising the impact of our spectrum resources and no one else has done more to transform spectrum allocations into services that are changing people’s lives. Planning spectrum is essential to enable the highest 5G performance and government backing for mmWave mobile spectrum at WRC-19 will unlock the greatest value from 5G deployments for their citizens.”

Going under the hood of Qualcomm Snapdragon 855: plenty to like

More details of Qualcomm’s first 5G chipset have been released, bringing all-round improvements, and a 5G chipset for PCs was also announced.

On the first day of its annual Snapdragon Technology Summit, Qualcomm announced its 5G chipset for mobile devices, the Snapdragon 855, but released limited specs. On the following two days more details were disclosed. An SoC for 5G-connected PCs, the Snapdragon 8cx was also unveiled.

In addition to the X50 modem for 5G connectivity (on both mmWave and sub-6GHz frequencies) and X24 modem (to provide LTE connectivity), at the centre of the Snapdragon 855 is ARM’s new flagship Cortex A76 CPU, marketed by Qualcomm as Kryo 485. It contains 8 cores with the single core top performance at 2.84 GHz. Qualcomm claims the 855 is 45% faster than its predecessor 845, though it did not specify what exactly this refers to. More importantly for Qualcomm, the top speed is 9% faster than the Kirin 980 from HiSilicon (a Huawei subsidiary), another 7-nanometre implementation of the ARM Cortex A76.

Also included in the 855 is the new Adreno 640 GPU rendering graphics. Qualcomm has focused 855’s marketing messages on gaming performance, and the GPU is at the core to deliver it. Qualcomm claims the new GPU will enable true HDR gaming, as well as support the HDR10+ and Dolby Vision formats. Together with the display IP, the Adreno 640 GPU will support 120fps gaming as well as smooth 8K 360-degree video playback. Another feature highlighted is the support for Physically Based Rendering in graphics, which will help improve VR and AR experience, including more accurate lighting physics and material interactions, for example more life-like surface texture, or material-on-material audio interaction.

The key new feature on Snapdragon’s Hexagon 690 DSP is that it now includes a dedicated Machine Learning (ML) inferencing engine in the new “tensor accelerator”. The Hexagon 690 also doubles the number of HVX vector pipelines over its predecessors the Hexagon 680 and 685, to include four 1024b vector pipelines. The doubled computing power and the dedicated ML engine combined are expected to improve the Snapdragon 855’s AI capability by a big margin.

The integrated new Spectra 380 image signalling processor (ISP) will both improve the Snapdragon’s capability to deepen acceleration and to save power consumption when processing images. Qualcomm believes the new ISP will only consume a quarter of the power as its predecessor for image object classification, object segmentation, depth sensing (at 60 FPS), augmented reality body tracking, and image stabilisation.

On the OEM collaboration side, in addition to Samsung, on day 2 of the event we also saw Pete Lau, the CEO of Chinese smartphone maker OnePlus come to the stage to endorse the new 5G chipset and vow to be the “first to feature” the Snapdragon 855. Separately, the British mobile operator EE announced that it will range a OnePlus 5G smartphone in the first half of 2019.

On the same day, thousands of miles away, more Chinese smartphone OEMs including Xiaomi, OPPO, Vivo, and ZTE (in addition to OnePlus) also embraced the new Snapdragon chipset at the China Mobile Global Partner Conference in Guangzhou, southern China. China Mobile will also launch a customer premise equipment (CPE), likely a fixed wireless access modem, using the same platform.

Back in Hawaii, on day 3 of the Snapdragon Tech Summit, Qualcomm launched a new chipset for PC: the Snapdragon 8cx (“c” for computer, “x” for eXtreme). This is Qualcomm’s third iteration of chipset for PC, built on ARM v8.1 (a variant of Cortex A76). Similar to the Snapdragon 855, the 8cx also has the X24 integrated cellular modem with for LTE connectivity, and the X50 modem with 5G connectivity can be paired with it. The CPU also has eight cores, with a top speed of 2.75 GHz. The new Adreno 680 GPU is said to process graphics twice as fast as the GPU in the previous generation ARM for Windows chipset (Snapdragon 850) but 60% more efficient in power consumption.

Perhaps the most meaningful change is its memory architecture. The Snapdragon 8cx will have a 128-bit wide interface, enabling it to provide native support for much more software and applications, including Windows 10 Enterprise and Office 365, which clearly is a sales pitch to the corporate IT departments.

Unlike the OEM support garnered by Snapdragon 855, there was no public endorsement by PC makers yet. Lenovo did come to the stage but was only talking about its Yoga 2-in-1 notebooks that have used earlier generations of Snapdragon chipsets for Windows on ARM. On the other hand, Qualcomm does not position Snapdragon 8cx as a replacement for the 850 but rather as a higher end contemporary, with 850 mainly targeted at a niche consumer market.

In general, this year’s Snapdragon Tech Summit has delivered more step change with the new product launches. More concrete industry support was also on show, indicating that, depending on how fast and extensive 5G is to be rolled out, we may start seeing true 5G smartphones in the first half of next year. We may need to wait a bit longer before a reasonable line-up of always-on 5G connected PCs can hit the market.