Telcos clash on mmWave's 5G importance as C-band spectrum comes into view

摘要

The debate over how critical mm Wave will be for a suc cessful 5G strategy is being kicked into a higher gear as two polarised telcos clash in the US. Verizon Communications (NYSE:VZ) and T-Mobile's (NASDAQ:TMUS) divergent investment strategies come as the FCCs mm Wave auction appears to show excitement is waning for the high-frequency spectrum. Analysts increas ingly believe Verizon will be seeking to acquire significant mid-band spectrum, such as satellite C-band, to better leverage its next-generation connectivity portfolio. Frequencies in mm Wave (millimeter wave) promise faster speeds and greater capacity but have more coverage limitations. Verizon showed how much it valued this dynamic when it bought mm Wave startup Straight Path for more than US$3bn two years ago, after beating AT&T (NYSE:T) in a bidding war. AT&T is also a big advocator for these frequencies but Verizon is arguably more closely tied to mm Wave than any operator in the world, according to MoffettNathason analyst Craig Moffett, who noted how it has not missed a chance to double down on the spectrum since Straight Path, placing it at the heart of its fixed wireless broadband and mobility plans.