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IP: The Wireless Week in Review


From: David Farber <dave () farber net>
Date: Sat, 22 Dec 2001 09:42:45 -0500


From: Dewayne Hendricks <dewayne () warpspeed com>

The Wireless Week in Review

Top news for the week of December 17-21, 2001.

1. TOPPING THE NEWS THIS WEEK

--Well, what happens now? Will any of the players involved in the FCC/NextWave settlement walk away from the deal now that Congress has decided to table the issue until next year, despite the deal's December 31 exit clause? We tend to agree with House Speaker Dennis Hastert (R-Ill.), who believes if the deal was good today, it still will be good tomorrow, which is why Congress decided to adjourn for the year without falling prey to a forced deadline.

That doesn't mean things will go well for the bankrupt carrier once Congress reconvenes next year. Despite perceived House approval of the deal, the Senate is a different story, with at least two high-powered officials saying they will fight the plan tooth and nail.

But, as usual, NextWave is of good cheer this holiday season, saying it will "continued to construct its wireless network during the settlement proceedings, and we will be in a position to start providing service to the public in the new year." Ho, ho, ho.

--You can bet the California Public Utilities Commission now will make clear to anyone in the running for commissioner what "telecom carrier" and "conflict of interest" mean, long before an appointment takes place. Commissioner Henry Duque, a four-year PUC veteran, is being taken to task by consumer groups because he invested $10,000 in ESMR carrier Nextel two years ago, admitting he "thought Nextel may have had something to do with telecommunications," but he wasn't aware the PUC oversaw such companies. The 700 shares were sold last year, but the groups still want him out.

--In this edition of "Crank Calls," we now can tell you what QEII carries around in her purse: her first cellphone, a gift from her Number Two son. Apparently, Her Majesty was so impressed by the device that Carphone Warehouse in the U.K. was tapped for a warrant that will allow it to display the royal arms and the words "By Appointment" on its stationery, buildings, vehicles and advertising.

In other parts of the U.K., cellphones aren't being given such royal treatment. Orchestra conductor Jac van Steen, who was leading the Halle Orchestra in Brahms' Symphony Number 4, was so disturbed by a ringing handset in the audience that he threw down his baton and shouted, "If that is my wife, tell her I'm not here."

2. CELLULAR/PCS

--A new next-gen association formed by heavy-hitters AT&T Wireless, Cingular Wireless, Compaq, Ericsson, Lucent, Motorola, Nokia, Openwave Systems, Rogers AT&T Wireless and Siemens says its mission is to work together for a smooth transition to next-gen services in North and South America. All access technologies will be addressed -- GSM, TDMA, GPRS, EDGE, and W-CDMA (UMTS) -- and the yet-to-be-named group also says it will work closely with the GSM Association. One wonders as to what CTIA or PCIA thinks about this?

--Things just keep going downhill for Motorola, which now says it must send out 9,400 more pink slips because the market for network and subscriber gear continues to tumble. The company has lost money for the last four quarters, resulting in its first annual operating loss in at least 45 years. It even admits to worse 1Q02 aggregated losses than even First Call predicts.

Looking on the bright side, an upcoming report from The Strategis Group says more than 483 million wireless subscriber units will be sold in the United States next year alone, and one third of the world's population will own a wireless device by 2008. In addition, TSG analysts predict such next-gen services as multimedia messaging will drive this consumer demand at least into 2003, which could bode well for Motorola and others down the line.

--U.S. Cellular has made the commitment to change out all of its markets to CDMA by sometime next year, and it will spend between $400M and $450M to do so. On the other side of the world, China Unicom picked New Year's Eve as the day it will flip the switch on what it says is the country's first nationwide CDMA network, rivaling incumbent GSM carriers.

--Little by little, interesting facts continue to surface regarding communications service following the September 11 terrorist attacks. One of them concerns NextWave's frequencies, which were turned over to AT&T Wireless and VoiceStream after the two carriers asked NextWave for permission to use its channels following the disasters. The FCC approved wholeheartedly of the temporary plan, and AT&T Wireless used the extra channels through November 27, and VoiceStream used them through October 12.

--Are incumbent carriers shooting themselves in the 3G foot when they introduce such 2G services as GPRS? Strand Consult in the U.K. seems to think so. Calling such a move "suicide," Strand says would-be 3G operators will find out subscribers who have been getting 3G-like content and services for free on 2G networks will refuse to pay for them when carriers migrate to a higher level.

--Bidders are getting ready to ante up for several auctions scheduled for New Zealand next year. On the block will be channels suited for WLL, LMDS and 900 MHz cellular along with some 2G spectrum left over from a past auction.

--NTT DoCoMo is finding out a done deal may not always be done forever. Following AT&T Wireless's decision to acquire TeleCorp PCS, the Japanese carrier, which owns 16% of AT&T Wireless, found out it will cost an additional $380M in AT&T Wireless stock to maintain that level of ownership.

3. SATELLITE

--Globalstar takes a lickin' and keeps on tickin'. The bankrupt MSS carrier now is offering satphone service to media, medical and humanitarian personnel in Osama bin Laden Land through Russian partner GlobalTel. Hmmm, such tracking capabilities could prove handy.

--Africa, which just a few years ago was begging ITU members to help it provide even the most basic of telecom services to its people, now is seeing satellite services handling wireless communications in several countries, including Angola and the Congo. interWAVE Communications, which designs compact wireless voice communications systems and broadband wireless data networks, signed a strategic integration and distribution agreement with Global Telephone & Telecommunications SA (GT&T), a Belgium-based satellite and last-mile access integrator, to deploy GSM cellular networks with satellite backhaul throughout Africa.

--Galileo, an EC initiative to compete with U.S.-based GPS, may die a quick death if the 15 member companies can't play nicely together. Six countries, including Germany and the U.K., say the system not only costs too much, it's redundant. Despite the projected $32M cost, EC officials stand behind Galileo, saying it is needed for scientific programs, and that it would create a new market for telecom gear and services along with some 140,000 new jobs during the next 15 years. EC officials say some sort of decision must be made by next February.

--An enhanced locating system geared toward parents is being offered by a partnership of GlobeXplorer Inc., a technology company that delivers what it says is the world's largest collection of interactive aerial images via the Internet, and personal-location provider Wherify Wireless Inc. Wherify wants to use the photo database to provide aerial imagery for its GPS Personal Locator for Children, which is worn by the child on his or her wrist.

4. WLL

--Winstar now has a new owner, and IDT Corp. has fulfilled plans to own a piece of the wireless telecom action. A bankruptcy judge gave the nod to IDT's $40M cash and/or stock bid for the financially challenged carrier after it proved it had enough cash in the bank to finance the takeover; no other suitor, including a group of former Winstar executives, could pass that test. Earlier this year, IDT had tried for a full takeover of bankrupt Teligent, going so far as to take control of its board, replace its management team and pare down its operations. Teligent's creditors, however, would not agree to IDT's final offer.

--Chile now has a WLL operation up and running, with Empresa Nacional de Telecomunicaciones SA (Entel) building and launching what could end up being a $150M system.

--Like China, parts of India are transitioning to CDMA, and South Korea's Hyundai Curitel was tapped to supply giant BSNL with 300,000 CDMA handsets and an additional 30,000 wireless local loops for an undisclosed price. The state-run CDMA service will cut over sometime during 2Q02.

5. TELEMATICS

--Citing upcoming "Homeland Security" safety measures that surely will come to pass post-September 11 as the reason for signing a MOU to buy the businesses and assets of privately held Andromeda Leasing Inc., Los Angeles-based LiteWave Corporation now plans to market ways of tracking and verifying boxed shipments. Andromeda installs equipment designed to track industrial containers, to monitor transmissions of sensor readings and to send command signals. At first, LiteWave will focus on refrigerated packaging, but it also thinks wireless tracking of all types of containers will become more prevalent in the foreseeable future. The merged company says it can provide such data as when the container had last been opened and confirmation of contents.

6. PRIVATE RADIO

--Nextel struck a deal with Aleph Inc. that has the two combining dispatch software and wireless networks to match limousine service with potential customers. Aleph says this partnership will allow it to scrap plans to build and maintain its own pricey private data network.


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