The Future of Telecom Regulation
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1 The Future of Telecom Regulation 1 40 th Annual National Conference of Regulatory Attorneys Portland, Oregon May 8, 2017 Dave Conn Vice President, State Government Affairs T-Mobile Dave.conn@T-Mobile.com
2 Who We Are 2 Our Company Headquartered in Bellevue, WA Publicly traded company (NASDAQ: TMUS) 50,000+ employees, 2 major brands (T-Mobile and MetroPCS) 17 call centers across the country We have introduced 13 major industry changes that we call Un-carrier moves in the last 4 years and have more planned Our Customers We are the 3 rd largest wireless provider in the United States with 72 million customers We have added approximately 13 million customers over 14 Qs in a row, with positive porting ratios against all other major carriers According to the latest data from Nielsen Mobile Insights, T-Mobile closed out 2016 ranked #1 in Customer Service Satisfaction ahead of Verizon, AT&T and Sprint We are redefining the way consumers and businesses buy wireless services through leading product and service innovation the duopolists are copying our moves Our Network Fastest Network In less than 4 years we have deployed the fastest network in the industry with average downloads of 24.4 Mbps; in Q4 2016, we marked 3 straight years of delivering America s fastest LTE network Better Coverage our Extended Range LTE which works 4x better in buildings and goes 2x further from the tower now covers 250M PoPs in more than 500 metro areas
3 T-Mobile Restricted Information: Privileged and Confidential Un-Carrier Moves 3
4 T-Mobile Network: Three Times the Coverage in Three Years 4 EOY M POPs 0.57M sq. EOY M POPs 1.41M sq. EOY M POPs 1.72M square miles miles miles Anticipated EOY M POPs LTE HSPA/GSM Partner Roaming
5 T-Mobile LTE Network Timeline 5 LTE Launch 202M Covered Pops Verizon spectrum acquisition approved 700 MHz Launch in Cleveland and DC 2013 Jul Oct Jan 2011 Mar 2014 May Dec M Covered Pops May: Seattle / SF Verizon spectrum acquisition announced VoLTE Aug: Nationwide 313 M Current Covered Pops at EOY First carrier to activate VoLTE
6 Depth of T-Mobile s New Nationwide 600 MHz Spectrum 6 T-Mobile Restricted Information: Privileged and Confidential
7 T-Mobile Restricted Information: T-Mobile s Network is Built for Unlimited 7
8 Relative Market Shares 8
9 Growing Data Usage 9
10 Evolving Industry Technology: Spectrum Bands 10 Original Mobile Spectrum: 850 MHz + PCS Spectrum: 1900 MHz + AWS Spectrum: 1700/2100 MHz + DTV Transition Spectrum: 700 MHz + Broadcast Incentive Auction Spectrum: 600 MHz AND: WiFi / LTE-U / LAA Other higher-band spectrum for the future
11 Evolving Industry Technology: Facilities 11 General deployments: Standard support structure is frequently the best choice Sites typically 50' to 150' high Signals can travel several miles, depending on geography Specialized deployments: DAS and Small Cells Can be placed on telephone poles, streetlights and other structures in a Right of Way Also used in large venues: stadiums, shopping malls, etc.
12 Evolving Industry Technology: Services 12 Voice SMS Data / Walled Garden content Web browsing Music streaming / Video streaming Apps 4G LTE -> 5G
13 Constraints of Federal Law U.S.C. Section 332(c)(3) (3) State preemption (A) Notwithstanding sections 152(b) and 221(b) of this title, no State or local government shall have any authority to regulate the entry of or the rates charged by any commercial mobile service or any private mobile service, except that this paragraph shall not prohibit a State from regulating the other terms and conditions of commercial mobile services.
14 Authority Under State Law 14 Outer Boundary of State Authority: other terms and conditions of commercial mobile services Within that boundary, question becomes whether State law provides a state commission with authority over mobile services Variation from state to state (e.g., CA vs. WA) Is a mobile service provider a telecommunications utility under State law? State authority over interconnection arrangements
15 Implications for State Regulation 15 UNDERSTAND CUSTOMERS Not just what they say, but how they behave Start with a specific goal in mind Figure out if regulation is necessary to achieve that goal Will competitive forces solve the problem? If regulation is necessary, figure out the least intrusive means of accomplishing your goal Understand whether your means will have implications for customers beyond those that are intended
16 Questions? 16
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