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5G (Wireless Communications) AT&T Inc Driverless and Semiautonomous Vehicles Prices (Fares, Fees and Rates) Smartphones T-Mobile US Inc Uncategorized Verizon Communications Inc

What You Need to Know About 5G in 2020

LAS VEGAS — Like many consumers, Kathryn Schipper, an attorney in Seattle, doesn’t have a landline. She relies on her smartphone for calls and videoconferencing, but reception is spotty.

So she is excited about the arrival of 5G, the fifth-generation wireless network that has been the subject of breathless speculation over the last few years. The new cellular standard, carriers have said, will reduce network congestion and pump out data so fast that smartphone users could download all the “Avengers” movies in a few minutes. It might even eventually help cars drive themselves.

“5G seems like orders-of-magnitude improvement,” Ms. Schipper said. “I’ve also heard it’s much more reliable, so that matters to me.”

Yet the shift to 5G feels like a tech revolution happening in slow motion. In 2019, AT&T and Verizon, the two largest American carriers, lit up their 5G networks in a small number of cities. Handset makers released only a handful of phones compatible with the new standard. The overwhelming majority of us saw no meaningful improvement to our cellular networks.

At CES, the big consumer electronics show in Las Vegas this week, the carriers are insisting that 2020 will be a turning point for 5G. AT&T and Verizon say they expect their 5G networks to be accessible nationwide this year. In addition, the carriers say at least 15 smartphones will be 5G compatible this year, more than triple the number last year.

“2020 is pivotal because you’ve got a good foundation built, and the ecosystem starts to form,” said Kevin Petersen, a marketing executive for AT&T.

So what does that even mean? A major technology shift is underway, which may have an impact on your personal technology in the coming years. And unlike its predecessors, 5G is complex and more confusing.

Here’s what you need to know:

In the simplest terms, 5G is a new cellular standard. Phone carriers have jumped to a new wireless standard roughly every decade. About 10 years ago, 4G, the fourth-generation network, arrived with significantly faster speeds and stronger reliability than 3G. About a decade before that, 3G arrived and was much faster and more robust than 2G. You get the picture.

Unfortunately, 5G is more complicated. There are a few flavors of 5G described with deeply technical jargon.

To make 5G easier to swallow, let’s rename the jargon into ice cream flavors:

  • The much-hyped, ultrafast variant of 5G is known as “millimeter wave,” but let’s call it rocky road. It lets carriers transmit data at incredibly fast speeds — the kind that would let you download an entire movie in a few seconds.

    The problem with rocky road is that its signals travel shorter distances, covering a park in New York but not a broad swath of the city, for example. It also has trouble penetrating obstacles like walls. So Verizon and AT&T have focused deployment of rocky road in large spaces like sports stadiums and outdoor amphitheaters.

    Because of the technical limitations of rocky road, we are unlikely to see it deployed nationwide anytime soon (if ever), meaning we won’t be getting these incredible speeds in the vast majority of places.

  • Instead, this year our cellular networks will broadly shift to a version of 5G that is less exciting. Let’s call this vanilla 5G.

    Vanilla 5G will have speeds that are only slightly faster than current 4G networks. The main benefit will be a reduction of lag known as latency. For example, when you do a web search on your phone, the results usually won’t load immediately; the lag can often last hundreds of milliseconds. In theory, 5G technology will shave this latency down to a few milliseconds. (To be clear, rocky road offers low-latency benefits, too.)

    AT&T and Verizon say their 5G networks, which will be made up of mostly vanilla 5G and small scoops of rocky road, should be activated nationwide this year. T-Mobile, which put a priority on deploying vanilla 5G over rocky road, said its 5G network was available nationwide last year.

    In short, the broad shift to 5G won’t be mind blowing, but you will probably notice a marked improvement.

In some cases, yes. While Wi-Fi is also very fast, it pulls data from a broadband connection, which is susceptible to degraded performance when others nearby are using it. By design, 5G transmits high amounts of data more efficiently, so it is expected to significantly mitigate network congestion. There is a high likelihood that you will get a consistently strong, faster connection on 5G.

Yes. You will have to buy a new phone with a 5G modem to connect with the new network technologies.

Most current 5G-compatible phones are expensive: Samsung’s Galaxy Note 10 Plus 5G, for example, costs $1,300. But as the technology becomes more common in the next few years, prices should drop.

The carriers are still tinkering with pricing.

Verizon’s earliest 5G plans charged an extra $10 a month for people with compatible smartphones to gain access to 5G. (It is currently waiving that fee as it builds out its 5G network.) However, Ronan Dunne, a Verizon executive, said the carrier was planning different types of packages. Some with access to both vanilla 5G and rocky road 5G could be priced higher, while plans with only vanilla 5G might be priced lower. (He declined to share specific prices.)

“Here’s a plan which says this plan comes with ultralow latency, and it’s part of a gamers’ package, or it might be part of a movie and entertainment package,” Mr. Dunne said. “Because of this ability to separate components of the network, you can see an evolution of a new type of pricing and plan model.”

AT&T’s so-called unlimited extra plan, which includes 5G access, costs $75 a month for an individual line.

T-Mobile said access to its 5G network was available to its subscribers at no additional cost.

AT&T, unfortunately, made 5G extra confusing for its customers. In late 2018, it rebranded parts of its existing 4G network as “5GE.” So AT&T customers with older 4G-compatible phones started seeing a “5GE” status icon on their screens.

For the sake of simplicity, let’s ignore 5GE altogether. It’s not real 5G.

AT&T’s vanilla version of 5G is branded 5G, and its rocky-road version is labeled 5G Plus.

It depends on where you go. (Some countries still lack thorough 4G coverage.) China is poised to have the largest 5G network in the world, and 5G is well underway in Japan and South Korea. The European Union’s goal is to release 5G in at least one major city in each member state this year, according to a study conducted for the European Commission.

The benefits will probably feel subtle and significant.

Lower latency is crucial to future mobile applications. It could make virtual reality work more smoothly — like if you were watching a virtual-reality broadcast of a live sports game and wanted to look around the stadium.

Reduced lag may also improve gaming: If you were playing a shooting game with friends online, there would be less delay between button presses and your actions in the game.

A reduction in latency will also help internet-connected devices talk to one another immediately. That is why technologists are looking to 5G deployment as a crucial step toward a world of autonomous cars. If one car is 5G equipped and so is the other, they can tell each other when they are braking. Or if the vehicle is signaling to turn right, it can communicate the turn to cars behind it so they can slow down or switch lanes.

“You can see why that’s not very relevant today but very useful tomorrow,” said Frank Gillett, a technology analyst for Forrester Research.

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5G (Wireless Communications) Antitrust Laws and Competition Issues Delrahim, Makan Justice Department Mergers, Acquisitions and Divestitures Regulation and Deregulation of Industry Sprint Nextel Corporation T-Mobile US Inc Uncategorized Wireless Communications

How a Top Antitrust Official Helped T-Mobile and Sprint Merge

WASHINGTON — As the $26 billion blockbuster merger between T-Mobile and Sprint teetered this summer, Makan Delrahim, the head of the Justice Department’s antitrust division, labored to rescue it behind the scenes, according to text messages revealed this week in a lawsuit to block the deal.

Mr. Delrahim connected company executives with the F.C.C. and members of Congress. And he gave executives insight into the thinking of Ajit Pai, the chairman of the F.C.C. who would also have to approve the merger.

He is “open and willing” to discussions about the deal, Mr. Delrahim said in one text message in June, a month before regulators blessed the transaction.

The messages between Mr. Delrahim and the executives involved in structuring one of the telecom industry’s most significant mergers in generations provide a rare inside look at the hands-on work the Justice Department’s top antitrust official undertook to shape the deal.

While it is not unusual for a law enforcement official to work behind the scenes to help companies overcome antitrust concerns, efforts like the one undertaken by Mr. Delrahim are almost always hidden from view.

The text messages show that he played a crucial role in bringing together top executives of T-Mobile, Sprint and another company, Dish, for negotiations. The Justice Department has said it would not have approved the merger without the emergence of another competitor like Dish.

The Obama administration rejected an earlier proposed merger between the companies, and it remains deeply unpopular with some consumer groups who fear it will increase prices for Americans, especially in rural areas.

Mr. Delrahim oversaw the often hostile talks between the companies, while pulling strings to get lawmakers and other regulators on board.

“Had a generally good chat with the chairman,” Mr. Delrahim wrote to Charles Ergen, the chief executive of Dish, the company that would prove crucial to the deal’s passage. The following day he encouraged Mr. Ergen to lobby lawmakers to urge Mr. Pai to approve new deal terms that would give Mr. Ergen more time to build out a competitive telecom business.

Mr. Ergen did so. He told Mr. Delrahim that he had “very good” meetings in Washington and that he talked to Mitch McConnell, the Senate majority leader, about the deal, according to the text messages.

When asked about the text messages, a Justice Department spokesman said that “the Antitrust Division is proud of its work in reviewing this important merger on behalf of the American consumer,” but declined to comment further.

T-Mobile and Dish declined to comment on the messages, which were submitted as evidence in a legal challenge to the merger led by the New York and California state attorneys general. Sprint didn’t immediately respond to requests for comment.

The messages also show that SoftBank, the Japanese conglomerate that owns the majority of Sprint, discussed lending Dish money to buy the assets it needed to become a telecom company.

In such an arrangement, SoftBank would essentially be financing a competitor to its own company, Sprint. But SoftBank also stood to lose financially if a Sprint-T-Mobile merger did not happen.

SoftBank declined to comment on Thursday.

In one strained exchange, Mr. Ergen told John Legere, the chief executive of T-Mobile, that he was still working to get terms of a deal done, pending board approval and “any other issues from our/your team.”

“And waiting on Softbank to finance the deal?” Mr. Legere wrote.

Mr. Ergen said publicly this week that several potential lenders had emerged to help his company buy assets, including JPMorgan Chase and SoftBank.

Sprint and T-Mobile, the third- and fourth-largest wireless companies, announced their latest merger plans in April 2018. The carriers promised their union would allow them to combine resources and bring the next generation of wireless broadband, known as 5G, for fifth generation, to rural America. They would have a combined 80 million United States subscribers.

The Justice Department announced its approval of the deal in July, citing the creation of a fourth and new competitor in Dish, which would buy assets from Sprint and T-Mobile to become a telecom company. In a parallel review, the chairman of the Federal Communications Commission announced it planned to approve the deal weeks later.

The merger is being challenged in court by several states and cannot close until that lawsuit is resolved. State attorneys general in New York and California are unconvinced that Dish will provide true market competition.

“Dish is a struggling satellite TV firm with no experience running a mobile wireless business — and no current mobile wireless business,” Paula Blizzard, California’s deputy attorney general, said on a call with journalists this month. “We cannot count on Dish one day in the future somehow growing into a viable wireless company equal to Sprint’s reach today.”

Mr. Delrahim was pressured to block the merger throughout the department’s review. Several Democratic lawmakers, consumer groups and state attorneys general said the deal would harm consumers by reducing the number of national wireless carriers to three from four. The reduction in competition would most likely lead to higher consumer wireless bills, the critics warned.

To salvage the deal, the companies came up with a solution: bring in Dish Network to buy some of their wireless assets to form another competitor and maintain four national mobile carriers.

Mr. Delrahim told reporters at a press event in July that the deal would not have passed muster without Dish, which had agreed to buy Sprint’s prepaid wireless service, Boost, for $5 billion, as well as other assets from T-Mobile.

“We were prepared to sue to block the deal,” Mr. Delrahim said in July, when he announced his approval.

In texts sent this May and June, Mr. Delrahim helped coordinate meetings between Mr. Ergen, Mr. Legere and Marcelo Claure, the chief operating officer of SoftBank and the chairman of the Sprint board, as they negotiated asset sales to Dish.

“I anticipate being part of the meeting and then leaving it to you guys to hash out details as needed,” Mr. Delrahim wrote in one text to Mr. Ergen about a meeting with Mr. Legere.

The telecom executives gave Mr. Delrahim regular updates on their often difficult negotiations. Both T-Mobile and Sprint executives were frustrated at times with Mr. Ergen, who told them he needed time to get his board to approve aspects of the deal.

“Why do you always play games. You got a deal of a lifetime and don’t blow it,” Mr. Claure told Mr. Ergen. “And you control your board.”

Mr. Legere and Mr. Ergen were sometimes hard to wrangle. At one point, when Dish sought funding from SoftBank, Mr. Legere was indignant.

“You’ve crossed the line,” he wrote. “For full disclosure (which may be a new term to you) I have told Makan I don’t believe you are serious about doing a deal.”

Mr. Delrahim seemed aware of the friction. In one set of messages, he invited Mr. Ergen to a meeting the next day with Mr. Legere and Mike Sievert, the president of T-Mobile, in his conference room at the Justice Department. “2pm confirmed,” Mr. Delrahim wrote. “I have not told John and Mike the meeting is w you yet, I will tell them in the AM.”

But the day the meeting was scheduled, Mr. Delrahim gave Mr. Ergen an update about a long talk he had held with Mr. Legere, Mr. Sievert and Mr. Claure.

“John is going to reach out to you,” Mr. Delrahim wrote. “May make good sense for you all to meet alone at 2, and then we all meet later today? I will make myself available.”