What Companies Plan for Their Shiny New 700 MHz Spectrum
CenturyTel weighs in early plans to use its 700 MHz spectrum for wireless overlay.
Telephony
Online reports that CenturyTel has announced that it intends to use its
shiny new 700 MHz spectrum for wireless overlay in rural and
low-density markets. CenturyTel is mum on what technology it
plans to use or exactly when it might start deployments. The company
notes that much of its spectrum won't be cleared until February, 2009
when TV broadcasters finally exodus from the band.
What I find most interesting about this is the overlay concept whereby
CenturyTel will use its spectrum to cover its existing ILEC markets
where it has a lot of fiber footprint. Presumably it will be able to
tie the wireless relay sites into its wireless network and since 700
MHz propagates so very well, it would serve a great value to add
broadband coverage very affordably to CenturyTel subscribers too far
from town centers to take advantage of its wireline footprint. Will
other carriers follow a similar strategy? That is hard to say. I
suspect that some may attempt to duplicate a mostly unicast strategy
like Qualcomm is doing with its 700 MHz spectrum.
For rural carriers though, this model makes enormous sense. As it will
require relatively few towers to serve a given area, even ones with
fairly heavy tree cover. Granted the 700 MHz spectrum bands don't allow
the delivery of very high bandwidth pipes, but for rural applications
where customers have few alternatives if any, it is a great example of
some service versus no service.
CenturyTel got spectrum that covers about 53 percent of its current
footprint in Arkansas, Louisiana, Ohio and Montana with some coverage
in another seven states. The price paid averaged about 70 cents per
MHz/POP.
Tim Sanders
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