Wireless News in the US, this week (Nov 4)

Briefing Doc: U.S. Telecom Trends - Convergence, Spectrum Scarcity, and the Enduring Relevance of Wi-Fi

Date: November 3, 2024

Sources: A compilation of press releases, news articles, and industry analyses from AT&T, Comcast, T-Mobile, UScellular, Verizon, and Opensignal.

Key Themes:

1. Convergence of Fiber and 5G: AT&T leads the charge with an industry-first integrated gateway offering seamless failover between fiber and 5G networks in a single device. This reflects a growing trend of converging fixed and wireless technologies to provide businesses with uninterrupted connectivity.
2. Spectrum Scarcity Driving Densification and Innovation: With the FCC lacking auction authority and limited spectrum availability, UScellular anticipates carriers will increasingly focus on network densification strategies using small cells to meet growing data demands. This reinforces the value of existing tower infrastructure.
3. Continued Dominance of Wi-Fi in Data Consumption: Despite advancements in 5G, Opensignal data reveals that Wi-Fi remains the primary source of smartphone data consumption in the U.S. This trend is particularly pronounced among cable MVNOs like Spectrum Mobile and Xfinity Mobile, which leverage extensive Wi-Fi networks for offloading cellular traffic.
4. Cable Companies Facing Challenges in Video Segment: Comcast's Q3 results showcase the ongoing decline of cable TV subscriptions, prompting discussions about potentially parting ways with their cable networks businesses. 
5. T-Mobile's Strong Performance and Aggressive Growth: T-Mobile reports impressive Q3 earnings, boasting industry-leading customer additions and revenue growth. They attribute this success to their 5G network superiority, value propositions, and innovative customer experiences.

Important Facts:

• AT&T's integrated gateway launches nationwide for select business fiber customers in early 2025.
• UScellular agrees to sell its wireless operations to T-Mobile for $4.4 billion, with the deal expected to close in mid-2025. They also sold spectrum to Verizon for $1 billion.
• Verizon aims to double its fixed wireless subscriber base to 8-9 million by 2028.
• Comcast lost 365,000 Xfinity TV subscribers in Q3 2024, while their broadband business lost 79,000 residential customers.
• T-Mobile added a record 865,000 postpaid phone customers in Q3 2024 and achieved a record low postpaid phone churn rate of 0.86%.
• Opensignal data indicates that T-Mobile users consume the highest proportion of data on cellular connections compared to other operators.

Emerging Trends and Points of Discussion:

• The convergence of fiber and 5G raises questions about the future of fixed wireless access and the role of 5G in providing backup connectivity for businesses.
• The scarcity of spectrum could lead to increased competition for tower space and drive up costs for carriers.
• The enduring relevance of Wi-Fi highlights the need for carriers to develop strategies that effectively integrate Wi-Fi into their service offerings.
• The decline of cable TV subscriptions presents both challenges and opportunities for cable companies as they navigate the evolving media landscape.
• T-Mobile's aggressive growth strategy and focus on 5G network superiority position them as a formidable competitor in the U.S. wireless market.

Thank you for listening!
-Mario Mejia