Small Carrier Orders May Bode Ill for Big Guys as E-911 Deadline Looms

Carriers led by CTIA told the FCC in a July filing that due to the wireless market’s evolution and lack of consumer “churn” they could not meet the deadline, even though it means fines and bad publicity. Sprint Nextel, Verizon Wireless, U.S. Cellular and Alltel are the main firms affected, since they have a handset-based E-911 solution. Cingular and T-Mobile are putting in place network-based solutions and aren’t subject to the handset requirement.

“The assumptions that the FCC made at the beginning of the process just have not been accurate,” said Michael Altschul, CTIA gen. counsel, noting that all major carriers want a delay. “This isn’t an area where some carriers haven’t accomplished the task and others have. Across the board all carriers need relief.”

But a public-safety source said his reading is that the FCC is disinclined to grant large carriers a broad suspension. The source observed that even for smaller carriers, the FCC has provided only limited relief.

The FCC has processed a handful of petitions from Tier 3 carriers, including an order for Golden State Cellular handed down Thurs. “All they're doing with them is using the Enhance 911 Act of 2004 and saying, ‘We're going to grant [a waiver] because of that and we're going to give you one year,'” the source said. “The Tier 1 have to be nervous. The Enhance 911 Act doesn’t cover them one bit. Nothing in that can be used for them.”

The FCC also may feel the need to stand firm, especially given pressure on VoIP providers to supply E- 911 service. But in large carriers’ favor, sources said, is more sophisticated filings that build a record favoring delay. The FCC also may question whose interests would be served by getting tough on carriers at this point.

“It’s hard to imagine how the public interest would be served by requiring wireless carriers to terminate service to customers who have not been willing to upgrade their handsets, particularly when more than 1/2 the PSAPs haven’t upgraded [to E-911],” an industry source said.

Chmn. Martin hasn’t started circulating an order on the July CTIA filing. But the meaning of that is unclear. The Wireless Bureau could address the issue, or the FCC could decide not to act, with the Enforcement Bureau declining to fine carriers that fail to meet the deadline.

The National Emergency Number Assn. and the Assn. for Public Safety Communications Officials have opposed giving carriers a general extension. NENA plans to release an update on how carriers are doing as the deadline approaches. Bob Gurss, dir.-legal & govt. affairs at APCO, said: “We are very emphatic. [The FCC] shouldn’t just push the date out. They should look at each request on a case by case basis.”

Sprint Nextel lags the furthest behind among the major carriers due to problems converting subscribers on Nextel’s legacy iDEN network to GPS handsets as a result of a software glitch affecting millions of Motorola iDEN phones. Despite “aggressive and targeted marketing campaigns” the combined carrier said only 80% of customers likely will have location-capable handsets by Dec. 31, with 95% compliance 2 years away. Before the merger Sprint was ahead of the curve. Sprint said that 95% of its legacy CDMA customers have location-capable phones. “We believe we've laid out good cause for a waiver in our filings and believe that we've laid out a clear path to get to 95%,” a spokesman said.

Verizon Wireless said it expects to be at 93% by year’s end, asking for a 6 month waiver to hit 95%. Alltel said it will needs 18 more months to hit 95%.