CINGULAR, SPRINT PCS REBUT NEW ICO'S TERRESTRIAL WIRELESS PLANS

In letter to International Bureau Chief Donald Abelson, Wireless Bureau Chief Thomas Sugrue and Office of Engineering & Technology Chief Ed Thomas, carriers argued FCC should reassess existing spectrum allocation for MSS, saying: (1) If too much spectrum has been allocated to MSS, “unneeded spectrum should be reallocated and auctioned because the Telcordia paper demonstrates that terrestrial networks using separated spectrum are dramatically more spectrally efficient than ATC networks sharing the MSS band.” (2) Alternately, if FCC concludes existing MSS allocations are needed to support satellite services, “then it should not permit any use of ATC networks, because of the considerable risk that ATC networks would pose to the capacity of MSS networks.” Wireless operators said Telcordia analysis demonstrated that “contrary to the claims of MSS proponents,” it is technically feasible for separate operators to share MSS band to provide satellite and terrestrial services. There would be no “loss of spectral efficiency” if 2 different companies, as opposed to one firm, operated satellite and terrestrial systems, letter said.

“More fundamentally, however, the Telcordia analysis shows that the central question before the Commission is not the technical feasibility of having a separate ATC operator, but the practical feasibility of doing any spectrum sharing between satellite and terrestrial networks,” filing said. Due to power radiated by ATC terminals within MSS beam, Telcordia analysis indicated, satellite uplink can tolerate only small number of active cochannel ATC handsets, carriers said. Cingular and Sprint rebutted arguments made by ICO earlier this year that if FCC tried to authorize independent terrestrial service in MSS spectrum, it would render it impossible for MSS networks to operate existing constellations or launch new ones.

In March, FCC sought additional technical comments on proposals that would allow flexibility in services provided using MSS spectrum. FCC earlier sought feedback on plan that would let MSS operators in certain bands provide service in areas where MSS signals are attenuated by integrating terrestrial operations with their networks using assigned MSS frequencies. In more-recent comment period, Commission asked for more technical information on alternate proposal that would open parts of MSS bands for any operators to offer terrestrial service that could be provided in conjunction with MSS or alternative mobile service altogether. Commission asked if it’s technically feasible for one operator to provide terrestrial services and another operator to provide satellite services in same MSS band.

Carriers said Telcordia found that: (1) With same frequency sharing, ICO could serve “at most” 18 ATC handsets operating outdoors and transmitting at full power per CDMA carrier pair within one satellite beam. Dynamic frequency assignment would improve ATC capacity by 50% to 27 outdoor handsets per CDMA carrier pair per spot beam. “One of ICO’s spot beams can cover an area larger than the state of Alaska,” filing said. (2) Based on Globalstar’s calculations, that licensee could serve 17 to 34 ATC handsets operating outdoors per CDMA carrier pair within one satellite beam if dynamic frequency assignment is used. “With cochannel sharing, service to only 80 outdoor ATC handsets within one of Globalstar’s beams would render the beam incapable of providing any MSS services,” carriers told FCC. Cingular and Sprint acknowledged they had missed March deadline for filing technical comments on MSS segmentation, but said they weren’t able to identify “the deficiencies in the MSS filings” until they were submitted.

In other areas, back and forth continues at FCC over whether Commission should grant terrestrial rights to use MSS spectrum assignments and, if so, if Commission should grant ATC authority to MSS licensees or segment MSS bands and auction terrestrial rights. Official creditors committee of Globalstar told FCC last week that “public interest overwhelmingly supports the grant of full, flexible, and integrated ATC authority to Globalstar.” In part, creditors argued ATC authority would allow Globalstar “to attract much needed new capital to realize the full potential of its service.” Creditors committee told FCC: “Without ATC authority, neither Globalstar nor any other MSS licensee will be able to raise adequate funding, given existing bear market conditions.” Committee put choice FCC faces in stark terms of either “reinvigorating the MSS industry or abandoning it.” Globalstar creditors told Commission that market value of company’s $3 billion of existing debt is $300 million and that replacement cost of MSS constellation would run about $3 billion over 4-5 years. “The revenue generating capabilities of MSS systems, absent ATC, are grossly insufficient to justify any further capital expenditures in the MSS sector.”

ICO Global Chmn. Craig McCaw met with FCC Chmn. Powell earlier this month, stressing need for “expeditious action in the MSS flexibility proceeding,” according to May 1 ex parte filing. According to filing, McCaw and other ICO officials said action was needed to move ahead with system upgrades. “ICO also stressed that MSS would be rendered infeasible if independent terrestrial providers are allowed to operate in MSS spectrum,” filing said.

New ICO has argued that splitting terrestrial operations from satellite operations in 2 GHz MSS spectrum would compromise MSS seriously enough to make it infeasible. Globalstar has advocated plan that would make terrestrial- based services in MSS spectrum possible by using dynamic frequency assignment.