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Technology Stocks : CAWS - Wireless Cable (New and Improved)

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To: .com who wrote (375)11/20/1996 1:04:00 PM
From: Zorro   of 5812
 
Interesting article from INTERNET WEEK

FCC TO AUCTION SPECTRUM USEABLE FOR WIRELESS
INTERNET ACCESS

November 11, 1996

Internet service providers seeking to bypass the local phone loop could find a useful option in wireless access, and the government will make a big chunk of spectrum available for that purpose by early next year.

The Federal Communications Commission, as early as this week, likely will put out a discussion document soliciting comment on reallocating 30 Mhz of spectrum that could be used for wireless Internet access, among other applications.

FCC Mass Media Assistant Bureau Chief Jonathan Cohen says the FCC's Notice of Proposed Rulemaking (NPRM) will come out "soon," but that the agency is under pressure from appropraitons legislation requiring that the band be auctioned by April 15. Cohen is on detail to the Wireless Bureau to help with the auction.

The 30 Mhz piece of the 2.3 Ghz band (2305-2320 Mhz and 2345-2360 Mhz) is under the purview of the FCC's Wireless Bureau and can be used for
applications like PCS, but Microsoft Corp. [MSFT] and MCI Communications Corp. [MCIC] are reportedly eyeing the band for wireless Internet access.

After the NPRM is out for an unspecified comment period, the FCC will issue final rules that will guide an auction for the band. Cohen says the NPRM will propose technical rules for the use of the band, guidelines for bidding in the auction and proposed licensing rules. He said the band is not heavily used, except for low-bandwidth domestic government use.

The availability of a wireless option that could enable ISPs to bypass the local loop could counter recent reports that soaring Internet usage could choke the phone system. Those reports have put added pressure on the FCC to let phone companies charge access fees to ISPs, sources in the agency told us.

Such a move could be devastating for ISPs, leading to higher prices to end users and slimmer profit margins. ISPs seeking to bypass the local phone loop may attempt to forge interesting alliances with wireless companies.

The wireless option, besides providing an alternative to using local phone lines, will also enable faster access speeds, FCC engineers say.

The tantalizing spectre of high-speed wireless access reportedly has piqued the interest of Microsoft and MCI. Cohen says the 30 Mhz region is a "sizeable chunk," that generally can be used for mobile telephony such as PCS.

But the FCC has left it "an open question" as to its actual uses. Cohen says the FCC is "moving in the direction of letting the marketplace decide" on how companies use spectrum. The band is "not heavily encumbered" and generally could be used by numerous users, depending on the bandwidth capacity and consumption of the application. He said Internet access could certainly be one use, but he could "not confirm or deny what MCI or Microsoft are thinking about."

Contacts: Kevin Werbach, FCC attorney, (202) 418-1597; Jonathan Cohen, FCC Asst. Chief-Common Carrier Bureau, (202) 418-0797.
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