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To: Rono who wrote (9745)	7/17/2001 8:05:46 PM
From: Rono	Read Replies (2) \| Respond to of 10227

8 companies get free spectrum licenses Irked wireless firms say they would pay billions By Andrew Backover and Paul Davidson USA TODAY Seattle billionaire Craig McCaw and seven other firms will get coveted federal licenses for a satellite-based phone service, people familiar with the situation say. Federal Communications Commission staff are expected to award the free licenses to McCaw's company, New ICO; Boeing; Celsat; Constellation; Iridium; Globalstar; Mobil Communications Holdings; and TMI of Canada. But the move, to spur development of satellite phone service in rural areas and set in motion by regulatory policy decades ago, is angering wireless companies that want the spectrum to improve coverage and deliver high-speed Internet services. They say the government could get billions by auctioning the spectrum to them rather than giving it away. ''Wireless carriers are experiencing an explosion in demand . . . and urgently need more spectrum,'' says Diane Cornell, vice president of regulatory policy for the Cellular Telecommunications & Internet Association. New ICO, which McCaw rescued from bankruptcy last year, for now can only use the spectrum for its satellite phone service. But he hopes to persuade the FCC to let New ICO integrate it with a traditional land-based cellular system. Because the satellite system works best for rural areas, New ICO would need the traditional system to serve cities where big buildings block signals from satellites. The FCC has deferred for several months its decision on whether McCaw will be able to use the spectrum to operate the land-based service. Meanwhile, major wireless carriers such as Verizon Wireless and AT&T Wireless say New ICO would become more of a direct competitor and would have an unfair edge because the wireless firms have to pay for spectrum. The wireless carriers want the spectrum so they can provide their own high-speed wireless Web services, also known as third-generation, or 3G, services. Spectrum for such services is in short supply. Bob Ratliffe, vice president of McCaw's holding company, declined comment on the FCC decision but said New ICO would push for the land-satellite combination. Satellite service has produced some big failures. Iridium recently emerged from bankruptcy protection. Globalstar is reeling. A wireless auction for spectrum earlier this year, which was largely voided by a recent court decision, fetched $16.9 billion.