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Technology Stocks : Nokia (NOK)
NOK 6.055-8.8%1:08 PM EST

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To: Nils Mork-Ulnes who started this subject7/6/2002 2:45:27 PM
From: carranza2  Read Replies (6) of 34857
 
This isn't going away anytime soon.

industryclick.com

AT&T Wireless Services is pushing technology vendor Nokia to foot a $2.2 million bill the FCC slapped on the carrier in May for failing to sell E-911 capable GSM handsets on time, Telephony has learned. The unusual action highlights brewing controversy about the commercial readiness of a location technology format known as enhanced observed time difference of arrival, or E-OTD.

AT&T Wireless is blaming Nokia for the delay, according to a source close to the carrier. The company also is petitioning the FCC to reduce the fine, claiming it was technically impossible to deploy the technology. AT&T Wireless and Nokia both refused to comment.

The finger-pointing comes as the FCC is under increased pressure to take a hard line on carriers that miss E-911 deployment schedules, particularly due to the terrorist attacks of last Sept. 11. Most large operators, including AT&T Wireless, missed the Oct. 1, 2001, deadline that required them to begin rollouts of Phase II emergency services. AT&T Wireless filed a waiver request, which was granted by the FCC, in anticipation of not being able to meet the Phase II distance specifications and gave no indication that it expected delays in deploying E-911 infrastructure and handsets.

All U.S. GSM providers are deploying E-OTD technology to meet the Phase II federal mandate. That mandate requires emergency services to locate cell phones dialing 911 within 100 meters 67% of the time, and within 300 meters 95% of the time. But commercial E-OTD equipment is lagging.

“Until networks are fully deployed, handsets can't be fully tested, verified and released,” said a Nokia spokeswoman. “We're working hard on testing and verification.”

Three carriers using E-OTD technology already have missed a June deadline because of the lack of commercial equipment. Cingular Wireless is relying on its vendors' claims that the technology works, but it could abandon E-OTD in 2003 if it doesn't have working equipment by then. CDMA operators such as Verizon Wireless and Sprint PCS are further ahead in deploying more mature assisted global positioning system, or AGPS, technology. More than 1 million handsets worldwide have AGPS capability, according to Qualcomm.

All carriers are facing the grueling task of integrating E-911 technology with public safety answering points, local carriers and their own networks. E-OTD technology is brand new, and GSM carriers are struggling to meet deadlines because interoperability testing isn't finished and networks aren't rolled out. Several also question its accuracy claims.

AT&T Wireless is feeling the pressure. That carrier and Cingular may ultimately scrap the technology altogether, said Allen Nogee, senior analyst with In-Stat/MDR. Cingular declined to comment, saying the topic was too sensitive.

“The laws of physics determine how good this is going to work,” said Nogee.

That's because the technology relies on three base stations in a given area to locate a caller. In rural areas, just one base station usually exists. In addition, base stations must be spread out for best accuracy, Nogee said.

“Cellular providers want the minimum amount of base stations and still have coverage,” he said. “If you get three or four or five base stations in rural areas, that's too many. Carriers aren't going to pay for that.”

E-OTD technology is a couple of revisions away from meeting the full accuracy requirements, but commercial handsets will hit the market by the third quarter, said Bill Clark, research director with Gartner Group.

“It's a little bit harsh to say it's a technology that's not working,” said Clark. “The vendors are definitely showing a lot of support for it, and the carriers are understandably holding their feet to the fire.”

Chris Wade, chief executive of Cambridge Positioning Systems, the U.K.-based inventor of E-OTD technology, is beating back what he calls “manufactured misinformation” in the market. “There was an assertion made in the U.S. that E-OTD had failed to meet accuracy requirements,” Wade said. “That is complete and utter rubbish.”

Wade pointed to Washington, D.C., field trial results from VoiceStream, revealed to the FCC in April, that showed E-OTD technology's accuracy to be 81 meters 67% of the time and 167 meters 95% of the time. VoiceStream is the only carrier that has revealed field trial test results.

“There are no technical problems,” Wade said. “This technology is being deployed in a manner we predicted and accuracy we anticipated.” [This guy is a funny guy.]

Wade claimed that 96% of all GSM network coverage in North America has three or more base stations within a reasonable distance. “We're talking about 4% of the network having less than three base stations,” he said. “There, we are going to get a less accurate solution. But you do get a solution.”

Nogee, however, estimated that callers generally are in contact with just two base stations, which wouldn't give an accurate enough reading because the technology calculates the distance difference between a phone and both towers.

Some vendors claimed that it is too early to tell whether any E-911 technology actually works. Even AGPS has accuracy issues deep inside buildings, Clark said.

“We all need to reserve speculation about the technology until we get into field trials,” said Brian Kober, vice president and director of North American product line management for Motorola's personal communications sector.

Critical trials are just beginning. Ericsson is testing the technology in San Francisco and Dallas. Nortel Networks is working on the technology in the Dallas area, while Siemens is studying the technology in Detroit, according to Wade.

“Obviously we are going to learn things about the technology and how to integrate it better and improve it,” Wade said. “Delays have to do with getting the dots joined up and making procurement decisions.”

Cingular Wireless recently made commercial purchases of E-OTD integrated infrastructure, Wade added. Motorola expects to release an E-OTD handset in the second half of the year. Wade expects the first E-OTD handsets to enter the market in September.

“When we introduce handsets depends on [when] our carriers get everything line up to meet this challenge of E-911 requirements,” said Kober.
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