Cable operators scored a big win in the race for 5G by diving into the Federal Communications Commission’s (FCC) recent Citizens Broadband Radio Service (CBRS) spectrum auction. Three of the country’s largest cable companies – Cox, Comcast, and Charter – collectively bid more than $1 billion to gobble up mid-band spectrum perfectly suited for 5G. This promises to be a game-changer in mobile offerings.
These three large Multisystem Operators (MSOs) bought a collective 19-24MHz for $1.14 billion across their wireline footprints, combining for 4.6BMHz Point of Presence (POPs), or .25 cents per MHz/POP. This is a standard measurement for the value of spectrum based on how many people are covered versus how much spectrum is available.
The CBRS licenses are for 10-year periods and purchased on a per-county basis, with 40MHz available in any given county, and some of this may cover large, urban areas. Cable companies will now be able to deliver consumer mobile services, Fixed Wireless Access (FWA) services, and Managed Private Networks (MPNs) for enterprises. In the early phase, MPNs (4G/5G+WiFi6) will be very attractive to enterprises as they don’t need to buy or sublease the license for the whole county and can rely on the expertise from MSOs to run these networks.
Because the services work both outdoors and indoors, enterprises may wish to use it to connect their Internet of Things (IoT) devices. They may even use it to replace or supplement Wi-Fi in addition to IoT connectivity. Service providers, meanwhile, will most likely use CBRS to deliver FWA services and as a replacement for last-mile fiber access and consumer mobile service to offload their traffic from their Mobile Virtual Network Operator (MVNO) partner.