To: Ruffian who wrote (78074 ) 7/29/2000 12:20:31 AM From: Rick Respond to of 152472 The July 29th, 2000 edition of the Economist, page 57 had an interesting article titled "Battle of the Airwaves." "The real threat to America's mobile-phone industry is not European rivals but a handful of television stations that block its growth. Oddly, politics has given the stations the upper hand." DT wants Voicestream in part to win an American license for next generation of wireless services, known as 3G.... But most of those licenses may be virtually worthless for some time.... The problem is that it has run out of room to grow: many of the frequencies most appropriate for new voice and date services are already being used by anybody from military-communications to security-alarm firms.... The sweetest band of all, that in the 700 megahertz range, where signals can travel easily through buildings, is occupied by UHF TV channels that are used by about 100 stations scattered around the country. The Federal Communications Commission plans to auction off this band to mobile-phone firms for 3G networks and any other advanced services that winners may dream up. But unlike previous auctions, the winning bidders will not be free to roll out services as soon as they can build the networks. The FCC is selling the spectrum "encumbered", which is to say already occupied by television stations in most regions. Reed Hundt, a former FCC commissioner, estimates that by 2005 the wireless services now in use or planned will require 250-460 megahertz of spectrum, two to three times what is currently available. "This is a crisis that could cost hundreds of billions of dollars," Mr Hundt told a conference on July 25th. "I'm calling on everyone here to wake up to it." Although this problem will not be fully felt until a new generation of wireless services beyond those now planned arises, 3G will be the first battleground "Selling off such severely encumbered spectrum makes no sense. It's simply unusable, complained Dennis Strigl, chief executive of Verizon Wireless, a joint venture between Vodafone and Verizon, which was created by a merger of Bell Atlantic and GTE." - Fred