AT&T’s planned “wireless local loop” plant could help it meet its Title II universal service obligation

When AT&T began the regulatory review process of its planned acquisition of DirecTV one year ago, it proposed to offer fixed wireless Internet service to about 13 million residential premises in its service territory not offered Internet service in order to improve the deal’s odds of gaining approval. These premises were never offered AT&T’s legacy ADSL service after it was introduced more than a decade ago. And even if they were today, ADSL would fall far short the Federal Communications Commission’s speed-based minimum standard for Internet service of 25 Mbps for downloads and 3 Mbps up.

Now that the FCC’s rules deeming Internet a common carrier telecommunications service under Title II of the Communications Act are going into effect requiring Internet service providers to “furnish such communication service upon reasonable request” under Title II’s universal service and nondiscrimination provisions, AT&T may be seeking another, more important role for its planned “wireless local loop” fixed wireless plant. 

Specifically, helping it meet its universal service obligations. With so many premises in its service territory refused Internet service for a decade or longer, AT&T could face a potential barrage of complaints and penalties if these premises remain without premises Internet service and it continues to say no to service requests.

However, as arstechnica reports today, AT&T’s fixed wireless service is expected to provide connectivity of up to 20 Mbps – below the FCC’s minimum standard for Internet service. The only way to get more wireless bandwidth is more fiber backhaul bandwidth and/or more wireless transmitters. That means AT&T would likely have to spend more than it would like on its planned “wireless local loop” plant to bring service up to the FCC’s standard in order to keep itself out of hot water with regulators.

AT&T to deploy "wireless local loop" fixed premise service in high cost areas

AT&T will apparently use wireless technology to provide fixed premise Internet telecommunications services using funding from the Connect America Fund (CAF) to subsidize infrastructure costs in high cost areas of the nation. The U.S. Federal Communications Commission announced this week that AT&T accepted $428 million in annual subsidies from the CAF to serve 2.2 million rural consumers in 18 states. Since the FCC requires CAF recipients to provide connectivity of "at least" 10Mbps for downloads and 1Mbps for uploads, the wireless gambit could potentially meet that standard. AT&T's wireless strategy was communicated to the FCC in a letter dated August 27, 2015 (H/T to California-based Steve Blum of Tellus Venture Associates):

We anticipate meeting our CAF Phase II obligations through a mix of network technologies, including through the deployment of advanced wireless technologies on new wireless towers that will be constructed in previously unserved areas. We will diligently pursue the necessary tower siting and permitting processes so that these new towers can be completed in a timely manner.

As previously mentioned in this space, the so-called "wireless local loop" (WLL) infrastructure strategy proffered in 2014 as part of AT&T's proposed takeover of DirecTV will also help AT&T meet its universal service obligations under the FCC's recently adopted Open Internet regulatory scheme classifying Internet as a common carrier telecommunications service. The strategy will also provide alternative premise service delivery infrastructure as AT&T retires its legacy copper cable outside plant.

The upshot for AT&T customers: Those that were never offered DSL service when AT&T rolled it out more than a decade ago might now see premise service roughly equivalent to DSL sometime in the next five years while those outside the very limited range of its U-Verse triple play DSL-based service could find themselves switched from legacy DSL to WLL.

An unresolved problem, however, is as Internet bandwidth demand continues its inexorable rapid rise, the WLL technology will be obsolete as soon as it's deployed and falls short of the FCC's current minimum benchmark for Internet service of 25Mbps down and 3Mbps up adopted earlier this year.

AT&T's dubious "wireless local loop" strategy to boost Internet reach if DirecTV deal blessed by regulators

AT&T’s hard sell on DirecTV: A new type of broadband network - Yahoo Finance: AT&T, however, still owns those 2.3 GHz airwaves in the Wireless Communications Services (WCS) band. In fact, it recently consolidated its WCS holdings across much of the country. And through a compromise with the satellite radio industry, it managed to clear the interference issues that previously made the band useless for wireless data services.

AT&T has said it will use WCS for LTE, but it’s beginning to look like it won’t build the same kind of LTE network it uses to connect phones, tablets and cars. Broadband spectrum analyst Tim Farrar believes AT&T plans to use those 2.3 GHz frequencies for its planned air-to-ground in-flight network. It may choose to use WCS for its fixed wireless network as well. Instead of transmitting to a plane in the sky, the network could link to an antenna. And that antenna could be conveniently mounted on a DirecTV satellite dish – all part of a bundled broadband and TV package.

This is more of the same 23rd century Star Trek quantum subspace channel magical thinking to rationalize an ABF (anything but fiber) infrastructure deployment strategy. Frequencies in that band may work in relatively flat terrain like AT&T's home state of Texas. But they can't penetrate more rugged and forested portions of AT&T's service territory where many premises are still only offered antiquated 1990s dialup Internet. A small New Hampshire wireless Internet service provider explains the problem in this item:

“The challenge with our technology is the land, the hills and valleys,” says Foucher. “The amount of trees is the other major factor. We might be able to connect one person, but their next-door neighbor might be behind a stand of trees that absorb the signals"

And consider this excerpt from a Wall Street Journal item on AT&T's Federal Communications Commission filing on the proposed merger:

If the deal goes ahead, however, it’s unclear how much of an improvement the fixed wireless technology will be. In its application with Federal Communications Commission for the DirecTV deal, AT&T said the transaction makes investing in the technology more feasible, but noted that the service is “relatively untested technology” and “its success in the marketplace is thus unproven.”

Fat lady singing on AT&T residential landline service; big telco going out with a whimper

New AT&T Plans Guarantee Pricing for 2 Years; Customers Can Save More Than 40% on on TV, Home Internet and Voice | AT&T: Choose DIRECTV You’ll get our DIRECTV SELECT™ All Included package for $50 a month, guaranteed for two years when you add it to an eligible new or existing AT&T service, like wireless or home Internet. The monthly equipment fees for up to four TV receivers are now built into the cost and guaranteed for two years. Taxes are still separate, since those vary based on where you live.

Add in High-Speed Internet and Voice

When you have DIRECTV you can add home Internet service with speeds up to 6 megabits per second for an additional $30 a month. And you’ll get a Wi-Fi gateway included at no extra charge. All guaranteed for two years. Also, when you pay for both services on a single bill you’ll automatically receive unlimited home Internet data – a value worth $30 a month.

The above excerpt from an AT&T news release issued April 11, 2016 shows AT&T retreating from its VDSL-based U-Verse product that offered Internet throughput that could marginally -- with ample data compression -- support video offerings. It's now offloading its video TV programming to DBS via its recent acquisition of DirecTV and dialing back Internet to first generation ADSL with "up to" speed of 6 Mbs (A fine print footnote tamps that down further, noting "Actual speeds are not guaranteed.")

The fat lady is singing. This latest product bundle marks AT&T's final landline offering in the residential premise market. The big telco is going out with a whimper. Legacy class DSL service isn't going to be able to support growing consumer preference for OTT and on demand video delivered via Internet versus TV programming packages offered over AT&T's DirecTV holding. Nor does it even measure up what the U.S. Federal Communications Commission defines as minimum standard Internet service of 25 Mbs. Moreover, AT&T's announced plans in 2015 to deploy fixed "wireless local loop" Internet service to about 13 million residential premises in its service territory not offered landline Internet service appears to have been a head fake, with no reported deployments.