Recently in Wireless Category

Ok, so yesterday I posted the witness list for today's Net Neutrality/Broadband hearing. I could have woken up at 5am to beat the line standers and get a seat with the lobbyists who pay people to stand in line for them in the halls of the Rayburn building, but I didn't. 

I could be listening on the Audio Webcast. I tuned in for about 10 minutes, and haven't been impressed yet. I've got other projects, other things to work on, so I'm listening but my attention has not been caught. Why? Have you ever turned on your favorite TV show expecting a new episode and instead getting a rerun, or worse yet, a 3 hour extended version of American Idol? You know what you'll be seeing and hearing. No surprises, nothing to discuss with your friends. Just the same, this hearing, despite a few new faces, was a rerun in a series over the past year or so, including a few at the FCC. 

We know who the players are and what the plot will be. I'd rather just spend my time working on the things that I can't predict than sit through hours of talking, when instead I can read my good friend Drew Clark or Andrew Noyes' (of Tech Daily Dose/CongressDaily fame), aka "That Other Andrew (tm)" or one of his colleagues write an excellent summary of what I already know is going to happen. Just think about this...

Posted to Broadband | Congress | FCC | Google | Net Neutrality | Politics | Rants | Telecommunications | Wireless
Om Malik wrote about this earlier, specifically that Cox has a hardware manufacturer lined up for its' network-to-be:

Cox Communications is one cable company that is wasting no time and embracing wireless. Cox's wireless subsidiary, Cox Wireless, spent around $304 million and snatched up 14 Block A and eight Block B licenses as part of the recently concluded 700 spectrum auctions. Now, there is word that the company has given the contract to build the network to Chinese equipment maker, Huawei. UBS Research in a note to its clients notes that, Huawei is going to supply CDMA gear for a wireless network.


That's not the big story. What's big is that Cox, alone among its' peers, has a huge advantage going into the coming battle for next-generation Wireless consumers.

While Comcast, Time-Warner and Charter (through Paul Allen's Vulcan) bid on, and won, licenses, building a new network is a big deal for a company with huge amounts of infrastructure to maintain. In a market (700Mhz) where Verizon has already won the "top dog" blocks, shareholders might get angry, especially if an operator bungles the venture.

Not Cox. Remember, they're owned entirely by one family. Cox Enterprises, Inc. is a totally private operation. Even their Cable company, which once was publicly traded has all of its' shares ultimately by CEI after the Cox family took it private several years ago.

According to this survey, consumers would buy wireless service from their cable company if they could. Cox has a market lock and a good reputation in its' core communities, where, coincidentally, it won the most spectrum.

Consider that unlike Charter or Comcast, which have a fiduciary duty to not waste their stockholders' money, Cox's only shareholder that matters is Barbara Cox Anthony, the mother of CEO James Cox Kennedy.

When you're playing with your family's money and you have home turf advantage, swinging for the fences isn't a bad idea. If Cox can carve out a role for itself, perhaps Verizon will feel the heat, especially since most wireless customers stay within a geographic region and aren't nationwide travelers all the time. 

With some luck, Cox could shake things up. Verizon vs Google isn't the only exciting story in this.

Posted to Cable | Wireless
If not, they're sure putting up a good fight. IP Democracy has a great post about Google's petition, filed with the FCC to effectively deny Verizon's bid.


To sum up, Google isn't too happy about Verizon's "description" of their "Open Access" plan, which they pretty much call an end-run around the requirements of the auction:

Verizon has taken the public position that it may exclude its handsets from the open access condition. Verizon believes it may force customers who want to access the open platform using a device not purchased from Verizon to go through "Door No. 1," while allowing customers who obtain their device from Verizon access through "Door No. 2." As Google previously made clear, Verizon's position would completely reverse the meaning of the rule such that the open access condition would apply to none of Verizon's customers, and thereby render the condition a nullity. Because this "two-door" position espoused by Verizon is contrary to the plain meaning of the rule, as well as the Commission's public interest findings and policy objectives set forth in the 700 MHz Second R&O, it must be rejected.

Fairly straightforward. Verizon can't allow "special access" for  applications by their own customers while denying it to others. How clear could the plain meaning of the auction rules be? I thought it was pretty clear what the Commission wanted: an open platform.

Considering Verizon has already tried to nullify Open Access in Court, and that CTIA (their trade association) is still trying to do so, isn't it obvious they have no intention of playing by the rules?

I thought the FCC was rather straightforward in the auction rules:

 700 MHz Second R&O, at ¶206 ("Specifically, a C Block licensee may not block, degrade, or interfere with the ability of end users to download and utilize applications of their choosing on the licensee'sCBlocknetwork,subject to reasonable network management."). 


Reasonable Network Management? Hmm. Where have we heard that term before? Seeing as Comcast-Vuze is settled and the Commission yet had a chance to define Reasonable Network Management (despite their recent hearings), does anyone else see the importance of them using the exact same phrase that they use in the Internet Policy Statement?

Clearly, the Commissioners are smart enough to realize that the 700Mhz network will be part of a next-generation Internet backbone, and they are going to hold Wireless providers to the same standard as "wireline" broadband, such as Cable, DSL and Fiber. 

(forgetting, of course, that K-Mart wants to let the Telecoms keep their walled gardens for now by denying Skype's petition to apply Carterfone to existing networks)

Could this Verizon-Google tiff force the Commission's hand on Net Neutrality as a whole? 

Consider: "Reasonable Network Management" is now an official term used in the CFR. They'll have to define it at some point. 

Anyone want to place bets that Comcast weighs in on this?
Posted to Wireless


As Alex reported in the Weekly Mobile News Roundup, NextWave Wireless, Inc. (yes, THAT NextWave) is planning on selling off their 2.5GHz PCS spectrum licenses.


Excuse me while I take the next 10 minutes to roll on the ground laughing hysterically.

OK, I'm back now.

For those of you who don't know, NextWave is the company that won a bunch of 2.5GHz PCS licenses back in the 1990s after the 1996 Telecommunications Act required the FCC to auction off that spectrum for advanced digital wireless services...sort of like what Europe had been using for years. 

So, NextWave won a bunch of licenses, and had to build out their network. Only, the FCC needed them to pay up. But, they couldn't do both. So, the FCC let them make installment payments on the licenses, making the FCC a de facto lender. When they couldn't pay the FCC (because they were trying to build out their network, otherwise they'd lose their licenses,) they filed for bankruptcy to protect their licenses, since the FCC, was, in effect a creditor. 

Meanwhile, the FCC tried to re-auction the NextWave disputed licenses, which created an entire new set of problems for the agency (one which they fixed in the 700MHz auctions that were just completed).

To make a long story short, the Courts agreed with NextWave, but the FCC continued to battle for years and years, with each decision they had to make in any license transfer proceeding dictated by how it fit with their position in the NextWave litigation. Eventually, the FCC kept appealing until the Supreme Court told it that NextWave could keep the licenses, many of which ended up in the hands of what are now AT&T, Verizon and T-Mobile anyway.

So, the circle is complete. The 700MHz auction is completed, with open access and (hopefully) none of the idiotic litigation that followed the last round of auctions, and NextWave is selling off their spectrum, because well, it just isn't that important anymore, and they make lots of Wi-Max hardware now.

For a fantastic take on the NextWave saga and why it was so ridiculous, read former FCC Commissioner (and economist) Harold Furchtgott-Roth's book (I should carry a copy with me everywhere I go) . It's called "A Tough Act to Follow?" and while it doesn't have the Beatles-referencing title of former Chairman Reed Hundt's "You Say You Want Revolution" it is a wonderful history of how the FCC can do something so horribly wrong, even with the best of intentions. Actually, you should read both their books, but Mr. Furchtgott-Roth's has much more about NextWave and is smaller. Plus, out of the two, he's the only one I've met and he's actually a pretty nice guy. Actually, all of the FCC Commissioners I've met are pretty affable people, and that includes three of the five current ones and two former. 

It's a shame that such friendly people get such a bad reputation. 

(Hey! FCC Commissioners! I'll plug YOUR books too! I actually read this stuff!)

wow, I'm boring.
Posted to Bad Business Ideas | Economics | FCC | Wireless
Image Credit: The New York Times

The Gray Lady's Brad Stone has a 3 pager in today's paper on everyone's favorite new holy war: RIM versus Apple. It comes complete with a cute historical reference to RIM's headquarters:

STEVE JOBSApple's chief executive and field general, has Napoleonic dreams of global conquest for his 10-month-old wonder gadget, the iPhone. So it may be fitting that he's encountering his most serious resistance in a city called Waterloo.  That is where, 70 miles west of Toronto in Ontario, 19 nondescript, low-rise office buildings comprise the headquarters of Research In Motion, maker of the BlackBerry.

Well, I, for one, have welcomed our Canadian overlords, having ditched my iPhone for a BlackBerry after 3 and a half months of swerving, sweating, and getting annoyed at the coolness of Apple's $400 screen.

In fact, at SxSW this past March I noticed that while the great uniter was Twitter, the great divide of the thousands of temporary Austinites wasn't Hillary versus Barack (Barack), or Mac versus PC (Mac), but iPhone versus BlackBerry. My verdict in March (and since then) is no clear winner.

The Times has delved into the sales statistics and constant rumours that fly about the next versions of each device, who uses what, and how, and most importantly, how many are being bought?

My biggest beef with iPhone was actually twofold: the lack of email and calendar syncing, and the battery life. One of them might be solved. The other? Let's think about it.

In March, Mr. Jobs announced that Apple would take the rare step of licensingMicrosoft's corporate e-mail technology, to allow iPhones to connect directly to business computers -- a dagger aimed at the heart of R.I.M.'s strength in the corporate market. In Apple's quarterly conference call last week, Apple executives said that one-third of Fortune 500 companies were interested in giving iPhones to their employees.

I'll go out on a limb here and actually praise Microsoft for delivering a great product, Exchange, and RIM for leveraging it for the on the go email user (sadly, most of my mobile use is email, Instant Message or an even cooler feature, RIM's peer-to-peer BlackBerry Messenger follow, but I use email more than anything). Also, the calendar. Ah, the calendar. I can add an appointment and invite a friend and it hits their calendar and mine, I can edit it on my Mac and it hits the phone in the same way. Yes, ActiveSync does that but at what cost?

I'm going to go even further out on a limb and talk about another SxSW experience. While on the town with a prominent blogger and friend, I heard curses at 4am as his iPhone's battery died. Meanwhile, my BlackBerry was still chugging along. At the SeaGate/HP Salt Lick adventure, there were skirmishes over the power outlets to charge iPhones.

Let's talk about another city with a large domed building: Washington, DC. The Capitol Complex is abuzz with the thumbings of  staffers, members (some in their 80's), lobbyists, and the occasional journalist. BlackBerry Service in the Capitol is a given. Senators, Congressmen, Staffers, etc love them. They're a badge of honor. And they work. 

My iPhone crashed, missed email messages, and was hard to answer or hear when I needed to hear. I had to constantly charge it or otherwise think about it. My BlackBerry, on the other hand, merely sits fearlessly on my belt, letting me know what's up. 

NYT says 1/3 of the Fortune 500 want to give out iPhones, but my experience tells me that at least 1/2 of those who need to have reliable email and scheduling with the occasional mobile web hit will give them back.

Steve, give me a keyboard and a removable battery, and we'll talk.
Posted to BlackBerry | Wireless | iPhone
At CTIA, FCC Chairman Kevin Martin ("K-Mart") announced his intent to deny Skype's petition for a declaratory ruling that would apply "Carterfone" rules to wireless networks, meaning the Big Four couldn't interfere with Skype software on iPhones or BlackBerries. Maybe this was a message to Skype, "stay off their lawn."

Skype didn't get the message. According to this press release, they're testing mass-market VoIP software in a number of countries.

Following recent moves to extend Skype? conversations to a wide variety of new mobile and wireless devices, Skype is taking another major step as it continues to merge its internet communications software with mobile phones. Today, the company released a beta version of Skype for your mobile, a mobile "thin" client that works on about 50 of the most popular Java-enabled mobile phones from Motorola, Nokia, Samsung and Sony Ericsson.

The beta version of Skype for your mobile is available worldwide with a feature set that includes chat, group chat, presence (seeing when your contacts are online), and receiving calls from Skype users, and through SkypeIn.* Additional features, which include the making of Skype-to-Skype and SkypeOut calls from the mobile handsets, are initially supported in seven markets: Brazil (Rio de Janeiro), Denmark, Estonia, Finland, Poland, Sweden, and the United Kingdom.


 

Now, note that this doesn't include the US. Maybe because of K-Mart's intentions to let the Big Four block Skype traffic, maybe because they want to see how it goes elsewhere first. But no matter what, when that 700mhz phone market opens up, expect Skype to get huge. You'll be able to have a landline, mobile, and portable number on any device you can think of. Now that's competition.
Posted to EU | FCC | Skype | Telecommunications | VoIP | Wireless
...they've designated TracFone, a wireless carrier, eligible to be declared "lifeline service" for rural areas.

This would allow rural Americans who might not be able to afford wireless service to discontinue their wireline service and use TracFone, and TracFone can offer discounts to those consumers by receiving subsidies under the Universal Service Fund. Quoth the order:

We find that TracFone's universal service Lifeline offering will provide a variety of
benefits to Lifeline-eligible consumers including increased consumer choice, high-quality service offerings,nd mobility.In addition, the prepaid feature, which essentially functions as a toll control feature, may be an attractive alternative to Lifeline-eligible consumers who are concerned about usage charges or long-term contracts. 

 

Many have complained that Universal Service is just a slush fund for the old wireline telcos. Not anymore. On the other hand, TracFone first asked about this in 2004. Why did this take 4 years to be finalized?

Also, where are the big 4 carriers on this? Wouldn't some Universal Service cash help them bolster their coverage caps and say, use the savings to deploy next generation service faster? If Wireless is a "lifeline" now, shouldn't they get some help maintaining it and use their money to improve everything else?

Posted to FCC | Wireless
Grant Gross at InfoWorld has said what I've been telling people for months: Google gamed the 700mhz auction system and won.

San Francisco - Three lawmakers complained Tuesday that Google "maneuvered" its way into an open wireless network without having to come up with a winning bid in the U.S. Federal Communications Commission's (FCC's) recently completed 700MHz spectrum auction.
Some lawmakers aren't too happy about that. In particular, Reps. Cliff Stearns (R-FL) and John Shimkus (R-IL) "suggested Google out-maneuvered the FCC when the agency required the winner of about a third of the spectrum that was auctioned to operate under open-access rules."

Um, guys? Let me tell you a secret.

Remember the last round of auctions after the 1996 Telecommunications Act? They were a disaster. Ensuing litigation from licensees who couldn't afford to both build out their networks and pay the FCC held up the deployment of PCS services for years. Does anyone remember NextWave? I suggest all of you, yes, every single one of you, go to Amazon and buy "A Tough Act to Follow?" by former FCC Commissioner Harold Furchtgott-Roth.

Furchtgott-Roth, who incidentally, is an economist who used current FCC Chairman Kevin Martin (aka K-Mart) as a legal adviser during his tenure on the Commission, tells the NextWave story in great detail.

Now, let me tell you about Europe. Over there, GSM is the standard, because governments subsidized the built-out of wireless networks. So, instead of a patchwork of country-to-country incompatibility, they agreed on GSM and use it, with great success. Unfortunately, if someone tried that here, they'd be shouted down as communists before the idea got off the ground.

Enter Google. Their proposal for a reserve price and open access was supported by Chairman "K-Mart," who probably has nightmares about NextWave when he thinks of auctions. Why?

Easy. "K-Mart" can't order or ask for a subsidized network, but the FCC can order a reserve price, open access, and a build-out requirement.

What's the result? The 700mhz auction suddenly becomes a de facto low bid contract. Google hit the reserve, and the rest of the players simply bid enough to win, hoping the other would lose, because either way, the network would be open to everyone. The FCC won because they got their open network, allowing for more competition ("K-Mart" likes competition) and Google won because they can develop their Android phones and be assured that they will have a network to operate on.

This wasn't an auction. It might have started as one, but it finished as a low-bid RFP...and that's a good thing for all of us.
Posted to FCC | Technology | Telecommunications | Wireless
Last week I had the pleasure of attending an event hosted by George Mason University's Information Economy Project which was focused on the topic of unlicensed spectrum.

The 10 second version: if you use Wi-Fi or a cordless phone, you're using Unlicensed Spectrum. Those 700mhz bands considered "white space" are unlicensed because to use them for TV channels would cause all sorts of TV interference. On the other hand, letting them be used for cool stuff like wide-area networks would have the same effect that the Part 85 rules did in the past (opening the door to stuff like 802.11, which is now an international standard).

It is fair to sell licenses for the exclusive right to use a chunk of spectrum. On the other hand, it is just as fair, not to mention in the public interest (see Communications Act, 1934) for the FCC to allow White Spaces to be used to develop new devices which would use the White Spaces, which are by definition public property, to provide the public with new wireless applications.


Posted to FCC | Wireless
Yesterday, I had the honor of speaking with Ambassador Richard Russell, who headed the U.S. delegation to Geneve in October and November of 2007 for the World Radio Telecommuncations Conference. Every four years, the U.N. mandates that the members get together and decide where they're going to put "new stuff" and how handle other issues, such as talking to satellites (and robots, although in the interests of security we didn't talk about that. because remember, persons denying the existence of robots may be robots themselves.) and standardizing usage to minimize international interference and maximize compatibility. This results in a binding treaty that, surprisingly, we really do care about honoring.

Ambassador Russell gave me a look inside what went on, and while I don't have any sound bytes or podcasts for you, I hope this will shed some light on why things are the way they are, and what we have in store for the future.

Two major issues came up at the outset, which were

1) where to put the next generation "Wireless Broadband" and what specific technologies would be used.

2) How to protect the new Wi-Max standard from Satellite interference.

First off, I did ask about White Spaces and unlicensed spectrum. He pointed out that at the last WRC in 2003, the U.S. successfully pushed for the 802.11 standard to be adopted for Wi-Fi internationally in an unlicensed band, and that internationally, there is an understanding that unlicensed is an important category.

Next, I asked about FCC Chairman Martin's CTIA remarks (re Skype) and how Ambassador Russell felt in his role as deputy director of OSTP how he felt we as a nation could continue to innovate and create an environment with a diverse marketplace.

He responded that we want to make sure that new technologies "get a shot," and steered us back to the WRC proceedings, where the U.S. took a position in defining what the "IMT" (International Mobile Telecommunications) standard would be in governing what would be considered acceptable for using that term.

With regard to Wi-Max, Germany and China wanted to specifically exclude it, but we were able to roll Wi-Max into the standard, which pushed the WRC to expand the spectrum reserved for IMT to include the 700Mhz band.

This is a big deal. While we're going to have that 700Mhz area available at this time next year, many countries aren't transitioning to DTV so early (Mexico is waiting until 2020). On the other hand, many developing countries are going straight to DTV. This means that 700Mhz won't be encumbered already and it'll be internationally sanctioned (including across the Americas, China, Japan, Singapore and India) for mobile broadband. Europe, on the other hand, is going to reevaluate this in 2015. Big picture? 700Mhz (and Wi-Max) is here to stay for  information services.

What did I take away? America is still the leader on many technlogical issues, and if we're on the right track, the world will follow our lead.


Posted to Broadband | Technology | Telecommunications | Wireless

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