Safety concerns raised by the aviation industry are delaying Verizon & AT&T’s deployments after these operators collectively paid $70bn to use the spectrum
Interference issues are delaying operators’ launch plans: In the US, AT&T and Verizon are postponing the deployment of 5G in the 3.7GHz band (the C-Band). The two operators paused their plans in December 2021, delaying the launch to January, following warnings issued by the Federal Aviation Administration (FAA) that mobile services in that band could interfere with aviation safety systems. On 31 December the FAA requested a further delay of not more than two weeks, while it identified “priority” airports and set out new methods of compliance. In a joint letter to the FAA on 3 January, the two operators initially rejected the request, but said they will refrain from deploying 5G in exclusion zones around airports for six months. However, later in the same day they agreed to a further 2-week delay.
AT&T and Verizon need to put the C-Band to use quickly: The C-Band will be highly important for AT&T and Verizon’s 5G plans, and more broadly for a step-change in 5G performance in the US. In February 2021, the auction raised more than $81bn – by far the highest amount ever raised in a spectrum auction in the US). AT&T and Verizon were the biggest spenders, respectively paying $23.4bn for and $45.5bn for their licences. Understandably, the two operators are eager to start reaping the benefits of their significant investment as soon as possible. Their competitor T-Mobile has already deployed 5G in other mid-band spectrum with positive results in terms of performance, meaning that AT&T and Verizon risk being left behind if they don’t get to use the spectrum quickly.
The risk of litigation looms: AT&T and Verizon pointed out that the radio altimeters used by the aviation industry operate in the 4.2–4.4GHz band which is nowhere near the C-Band, and that the FCC’s C-Band Order ahead of the auction was designed to protect aeronautical services. However, the fact that the two operators bowed to pressure from the FAA suggests they were concerned about further delays, especially since airline companies threatened legal action. The operators and the FAA have now made voluntary commitments on the course of action to take in the next six months. This should reduce the risk of litigation, but all stakeholders will have to tread carefully since they still need to work out the details of the necessary safety measures. The Air Line Pilots Association (ALPA) has lamented a lack of disclosure of critical information from the FCC, and appears determined to stand its ground.
