EuroWire November 2019

Transatlantic cable

As Microsoft and more recently AT&T discovered, such investigations may or may not reach a result: “But the distractions they cause come at a cost…America’s tech giants may well be able to pull themselves intact from the regulatory quicksand, but the price they pay may not be in dollars alone.” [ Reuters, “Silicon Valley giants face regulatory quicksand”]. AT&T’s regulatory run-in was over its $85 billion acquisition of Time Warner, and it is widely believed that the delay in closing the merger resulted in costly delays with its new video streaming service, HBO Max. Microsoft was investigated by the Department of Justice (DOJ), accused of using its operating system dominance to give customers little option other than to adopt the Internet Explorer browser. Although largely victorious, the company was forced to abide by consent decrees and its stock was pretty much stationary until the order ended in 2011. The DOJ is not alone in taking a look at Silicon Valley and its major players, and this in itself could cause problems. The DOJ’s announcement was followed, just a day later, by the Federal Trade Commission’s announcement of a $5 billion ne against Facebook. With companies “engaging the enemy” on several sides at once, resources are stretched, deals are taking longer to nalise, and executives are distracted. The review suggests that the DOJ is starting to take note of consumers’ feelings and could possibly rede ne the concept of competition. At present, in the United States, the idea of competition is generally viewed in terms of pricing, but that could change.

Telecoms

5G, or not 5G? In early August, AT&T announced the launch of its 5G network in New York City. However, the network is actually 5G+, AT&T’s super-fast, though limited range, millimetre-wave network. “Limited range” means the network, as yet, is limited to certain locations that include East Village, Greenwich Village and Gramercy Park. For the average consumer AT&T has a confusing range of networks to navigate. While 5G+ is AT&T’s 5G o ering, the operator provides a 5G that actually uses sub-6GHz spectrum; this covers a wider area than 5G+ but the speeds are slower. There’s also 5GE, which stands accused of being “not really 5G” but simply an improved version of the company’s existing LTE network. Amy Kramer, president of AT&T’s New York region, said: “While our initial availability in NYC is a limited introduction at launch, we’re committed to working closely with the city to extend coverage to more neighbourhoods throughout the ve boroughs, [introducing] 5G broadly over sub-6GHz in the coming months, with plans to o er nationwide 5G in the rst half of 2020.” In August, AT&T appeared to be ahead of the competition in any form of 5G. AT&T had a 5G service in 21 cities; Verizon had 5G in nine cities; T-Mobile in six cities; and Sprint in ve.

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November 2019