MDS AMERICA JOINS NORTHPOINT IN FIGHT FOR DBS SPECTRUM

Kirkpatrick said his ultimate goal was to cause FCC to auction spectrum sought by Northpoint. He said MDS America had been “technology provider” for high-speed Internet and TV service providers in 20 global markets, including France, Iceland and New Zealand. He said company’s track record showed how spectrum sharing between terrestrial and DBS operators could operate without interference.

MDS wants to distribute “radio wave” service from terrestrial tower using self-made omnidirectional antenna with 360 distribution pattern to “underserved regions” of U.S. “There are some places with no broadband services,” he said: “We can roll out bundled services in a matter of months.” MDS America and Northpoint are promoting themselves as alternative to cable and DBS, but Kirkpatrick insisted his company’s technology was superior. He said there were few similarities between 2 outside of fact both were terrestrial companies seeking DBS spectrum. “We're not as dependent on the directional compass as Northpoint,” he said. “The characteristic of our transmitters is they are designed specifically for this purpose.” Kirkpatrick said 3rd- generation Internet server was “delivering the fastest Internet on the planet” through wireless network. In Kuwait, he said, MDS equipment provides 100 channels of DBS type and 100 channels of video-on-demand service.

System has been under development for 15 years and used successfully by French-based parent MDS International, Kirkpatrick said. Company has been sharing spectrum and operating system with DBS operators in Europe and Middle East since 1996, he said. He said Northpoint and MDS America were “not the same” because all Northpoint “has done is show off-the-shelf hardware.” He said MDS America, “unlike Northpoint, has a working functioning system.” Kirkpatrick said company had hired LCI to test its system independently. It didn’t participate in Mitre tests and company is prohibited from taking on private clients (CD April 25 p5). “They work exclusively for the U.S. government,” he said: “We would have loved for them to test our system.”

Kirkpatrick said FCC “auction is the best way” for MDS America and others to acquire spectrum to use terrestrial services in shared DBS spectrum. Northpoint in FCC filings has opposed auction. “We're in favor of competition and letting the free market sort out systems,” he said. “When you bid at an auction, you have a motivation to find a way to exploit what you have purchased.” -- Bruce Branch

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EchoStar Chmn. Charles Ergen and DirecTV Chmn. Eddy Hartenstein challenged terrestrial rival Northpoint to participate in congressional hearing to sort out spectrum-sharing and interference issues raised by Mitre report in 12.2-12.7 GHz spectrum. Challenge was issued after Northpoint CEO Sophia Collier asked EchoStar and DirecTV to participate in debate moderated by Communications Daily this week. “We believe that rather than a debate staged for the press, a more appropriate venue for a debate is a full congressional hearing by either the full House Commerce Committee or by Subcommittees on Telecommunications and the Internet or Commerce, Trade and Consumer Protection.” Letter suggested hearing would provide more people with opportunity to participate in public forum. Collier responded that Northpoint was “disappointed” DBS leaders had “declined our call for a prompt debate” and renewed call for public debate and/or congressional hearing “where both sides would have the flexibility to immediately respond to assertions of the other side and any interested member of Congress or the public could challenge both of us with questions.” Collier said some action should take place before May 23 deadline for comments on Mitre report. MDS America supports debate and congressional hearing and wants to participate. CEO Kirk Kirkpatrick said “MDS can make a valuable contribution” because it’s currently operating system similar to Northpoint in 20 countries.