If an MSS/ATC wireless partnership is as promising as mobile satellite services (MSS) operators claim, why hasn’t there been a deal? analysts asked ICO executives at the UBS conference? “I don’t know,” said ICO CEO Timothy Brian: “There’s a huge amount of interest in it still, but people are considering all the alternatives.” ICO and MSS rivals TerreStar, Mobile Satellite Ventures, Inmarsat and Globalstar refer often to ATC discussions under way with potential partners aiming to tap their nationwide satellite spectrum holdings from the ground. But aside from references to AWS auction prices -- which MSS firms are using as a barometer for spectrum valuations -- details are scant and guidance is vague, frustrating analysts. ICO’s talk at the UBS conference was no different. “MSS and ATC are ubiquity and capacity,” said Pres. Craig Jorgens. ICO has paid for 90% of its satellite and 60% of its launch vehicle, officials said. “This is not a plan on a piece of paper. This is real work being done,” Brian said of the company’s next-generation S- band system. ICO could use its 20 MHz of nationwide S-band spectrum for a mobile voice, video or wireless broadband play, he said. “We spend a lot of time on cellular,” he said, noting that ICO’s largest backer is wireless pioneer Craig McCaw. He, Bill Gates and others put $1.2 billion into ICO to bring it out of bankruptcy several years ago. The company has since raised $650 million more in convertible debt. “The same economic decisions would apply to deploying in the S-band as in the AWS band, and given the spectrum clearing advantage of the S-band, it will probably be quicker to deploy there than in AWS,” Jorgens said. ICO’s gateway development is complete, its chipset and RF R&D are under way, and a satellite operation deal has been made, he said. Other ICO news: (1) Expect to see additional independent directors hired in coming months. (2) ICO’s $2 billion lawsuit against Boeing is set to go to trial in Sept. 2007. (3) ICO is still battling for access to S-band frequencies in Europe, where it wants regulators to consider it a legacy operator.
Wireless Spectrum Auctions
The FCC manages and licenses the electromagnetic spectrum used by wireless, broadcast, satellite and other telecommunications services for government and commercial users. This activity includes organizing specific telecommunications modes to only use specific frequencies and maintaining the licensing systems for each frequency such that communications services and devices using different bands receive as little interference as possible.
What are spectrum auctions?
The FCC will periodically hold auctions of unused or newly available spectrum frequencies, in which potential licensees can bid to acquire the rights to use a specific frequency for a specific purpose. As an example, over the last few years the U.S. government has conducted periodic auctions of different GHz bands to support the growth of 5G services.
Operators still face heavy time pressures despite the FCC extending to 2010 from 2007 a buildout deadline for wireless communications service (WCS) operators, said Paul Sinderbrand, counsel to the Wireless Communications Assn. (WCA). Before buildout can begin, however, the FCC must release long-awaited rules for digital audio radio service (DARS) repeaters used by XM and Sirius to extend their reach, WCA said. Satellite radio operators and WCS licensees occupy adjoining frequencies.
AWS spectrum auction results were predictable and those for the 700 MHz auction could be, too, panelists said Thurs. at an FCBA Wireless Telecommunications Practice Committee lunch. The event came a day after the FCC awarded numerous licenses bought in the AWS auction. Panelists and onlookers downplayed chances of the 700 MHz transition hard date being imperiled in the new Congress but acknowledged some parties might try to change the terms.
Congress, DHS and the FCC must ensure that first responders get the equipment, money and administrative support they need to build a strong interoperable emergency communications system, 2 former govt. officials said Wed. The Deficit Reduction Act, which spelled out rules for the DTV transition, ordered 24 MHz of spectrum auctioned for public safety -- “prime” frequency that will meet 21st Century communications needs, said a white paper by Larry Irving and Michael Gallagher, former Commerce Dept. communications officials under President Clinton and the current President Bush, respectively.
FCC Comr. Adelstein used a Wall Street term before a finance audience Tues., saying he’s “bullish on satellite.” Keynoting at the ISCe Satellite Investment Symposium in N.Y., Adelstein said he has been “particularly struck” by the changes in all segments of the industry the past 18 months. The commissioner highlighted several recent shifts, from M&A activity in the FSS sector, to growth and challenges facing DBS, satellite radio and next-gen mobile satellite networks promising Ancillary Terrestrial Component (ATC) capabilities.
Verizon Wireless is pushing the FCC to move up the starting date for the 700 MHz auction, which could effectively kill a Cyren Call proposal for a wireless broadband network serving public safety using 700 MHz spectrum, sources said. Meanwhile, even though the FCC had held it cannot reallocate the spectrum without Congressional action, the agency has been inundated with comments in recent days in support of the Cyren plan.
MIAMI BEACH -- Comcast CEO Brian Roberts told state regulators consistent, even-handed regulatory policies are the key to expansion of facilities-based cable competition into the small-business market. Roberts, speaking at the NARUC annual convention here, said regulators also need to address the remaining barriers to competition.
AWS spectrum may offer a way for Rogers to improve existing wireless data services rather sell WiMAX, said Chief Strategy Officer Mike Lee. Canada’s Dept. of Industry plans to auction 1.7 GHz AWS spectrum, paired with 2.1 GHz, next year or in 2008 (CD Nov 3 p4). Rogers hasn’t decided whether to bid, Lee said: “We would see it more as a complement to our wireless service, meaning our voice data services for traditional cellular wireless services.” Rogers uses 2.5 GHz and 3.5 GHz to sell a product similar to WiMAX in 20 large cities including Toronto and Vancouver, said Lee. - JM
The new makeup of Congress won’t derail the DTV transition or much of anything else pushed for by Verizon Wireless, Gen. Counsel Steve Zipperstein said at a quarterly news briefing Wed. on the carrier’s Washington issues. Because wireless issues have avoided polarization, he said, very little will change in how the company pursues its policy goals.
SAN FRANCISCO -- WiMAX offers a great way for cable companies to broaden service offerings and extend service territories, said executives of vendors, including Motorola. Cable companies are looking at WiMAX to expand their service areas, said Manish Gupta, marketing & alliances vp for Aperto Networks, on a panel Tues. at the wVoIP conference here. Wade Alt, Mobile Satellite Ventures’ sales & strategic channels vp, agreed, saying foreign carriers could use the technology to enter the U.S. market.