Sprint lauds FCC decision to allow flexible use of MMDS spectrum.
eprairie.com
CHICAGO – Sprint Broadband Direct's high-speed fixed wireless service and its employees are
currently under duress, sources tell ePrairie, as the company reacts to a recent FCC verdict.
The Federal Communications Commission decided last Monday to give greater flexibility to the owners
of fixed wireless spectrum by allowing them to use the communications frequency for mobile communications as well.
Carriers that use the band, which they purchased inexpensively and are now finding to be very valuable, are targeting
the asset for use with high-speed third-generation (3G) wireless systems and applications.
"The idea behind this decision is we're looking for a home for 3G mobile applications ... by
giving flexibility for it without guaranteeing it," said Rodney Small, an economist in the
FCC's office of engineering and technology. Though the FCC said last Monday that it
"promotes the continued introduction of fixed wireless broadband services," Small says,
"This could lessen the use of fixed wireless [and increase mobile], but that would be in the
public interest because it would mean mobile has more value."
He adds that this decision displeases hardcore 3G proponents, such as those at Verizon
who wanted the FCC to require companies to do away with their fixed wireless spectrum
and have it auctioned off completely. Small also said that Sprint and WorldCom, which
thought they were already making good use of their fixed wireless spectrum, were
influential with the FCC in preventing the complete reallocation of the spectrum to mobile
systems.
The FCC sees this decision as a first step and a compromise between people who wanted
to reallocate the spectrum and others who didn't want to change anything at all. Small
warns that no true mobile applications can yet be performed on this band until further
rulemaking takes place.
The FCC said last month it intends to delay an auction for additional 3G spectrum by
nearly two years, which has added to the urgency of some carriers for more spectrum.
Sources tell ePrairie that Sprint has spent nearly $1 billion on its fixed wireless spectrum and significant funds lobbying
for the FCC's decision. Small says that carriers have spent nearly $10 billion total for all available fixed wireless
spectrum.
Carriers like Sprint are now faced with the quandary of whether to keep their fixed wireless service alive or boost their
mobile side. While some, like Sprint, have already invested heavily in fixed spectrum, most industry experts agree that
mobile offers much greater potential.
Sources within Sprint say there's little question that the company will make the move to mobile. One source said there is
"100-percent probability" that Sprint will reallocate the spectrum to mobile uses because there's "more value in mobile."
The source warns that all fixed wireless may be facing a "telecom Vietnam" that could eventually end in its near or total
elimination.
This of course would be a boon for high-speed cable and DSL providers because they'd have one less competitor to face
in the margin-crushing market for high-speed Internet access. Consumers, on the other hand, will likely face increased
broadband prices and fewer provider choices.
Sprint last Monday issued a statement lauding the decision: "Sprint commends the FCC for its decision against relocating
current users of the 2,500 to 2,690 MHz spectrum band and allowing continued use for fixed wireless services by MMDS
... licensees. Sprint agrees with the FCC's decision to protect incumbents from interference while allowing market forces
to determine the feasibility of using this spectrum for additional services."
MMDS, or "Multichannel Multipoint Distribution System" technology, is used by carriers such as Sprint Broadband Direct
in Chicago, which beams a signal out 35 miles in all directions from a large dish atop the Sears Tower to small dishes on
homes. Cellular technology typically uses the 800 MHz band, whereas PCS (Personal Communications System) typically
utilizes the 1,900 MHz band.
By ADAM FENDELMAN
Associate Editor
Telco/Personal Tech Reporter
adam@eprairie.com
AOL/AIM screename: PureAdam11 |
