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Technology Stocks : Nokia (NOK)
NOK 6.790+5.0%Jan 7 3:59 PM EST

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To: Valueman who wrote (3299)1/17/2000 12:22:00 AM
From: grok   of 34857
 
To all:
This is from the Wave Report. 3dlinks.com
Forgive me if it has already been posted.
---------------------------------------------

***A Battle Over Global 3G Spectrum
(January 13)

According to Intertec Publishing Corporation, a conflict has
arisen concerning the frequency band where third generation
systems will operate. At issue is the additional 160 MHz of
spectrum that the ITU and some companies believe will be needed
for future 3G services. Original 3G plans call for 230 MHz of
spectrum around the 2 GHz range. The question, which leaves
multi-channel multipoint distribution service (MMDS) players, PCS
operators and the government in disagreement, is where to get the
additional 160 MHz.

The European community has pinpointed three frequency ranges as
potentially viable worldwide: 1710 to 1850 MHz, 2520 to 2670 MHz
and 2700 to 2900 MHz. The debate over which band to use will
unfold in May at the World Radio Conference in Istanbul, Turkey.

Most policy-making bodies around the globe have approved the
proposed 1700 MHz band, mainly because of its proximity to other
cellular bands and the relative ease with which it could be freed
worldwide. Yet, the U.S. government has changed its tune a bit,
deciding to investigate the feasibility of vacating spectrum in
each of the proposed bands, which are currently occupied in the
U.S.

The foot-dragging in the U.S. may point to larger spectrum
issues. Some believe a few operators might wage this battle just
to harm other players. The MMDS industry, which has a much
smaller regulatory voice than mobile wireless players, fears
existing U.S. wireless carriers may push for the 2500 MHz bands
if only to stall the success of MMDS, even though MMDS doesn't
compete directly with mobile voice. For example, competitors of
Sprint PCS might want to hamper MMDS to hurt its efforts at
rolling out fixed broadband wireless services.

Although it's unlikely MMDS license holders would see their
spectrum revoked, it's possible that the government could put an
age on the spectrum, requiring its return in 10 years, for
example. The WCA argues that future services in the MMDS bands
are just as valuable as services that could be offered via 3G
systems in the same spectrum.

In the end, the argument may be moot. Many operators can't
imagine needing anywhere near the original 230 MHz block of
spectrum designated for 3G. Sprint PCS currently uses only about
1.5 MHz in most markets and owns upwards of 30 MHz in each area,
said a spokesman for Sprint PCS. A full 3G system might require 5
MHz of spectrum, although some believe technology progress might
continue to decrease spectrum requirements.
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