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MDS CHALLENGED BY NORTHPOINT ON FILINGS AT FCC

Northpoint said potential competitor MDS America made “serious misrepresentation” and attempted to “deceive” FCC and “American business community” by saying it was operating service in foreign markets that was successfully sharing spectrum with DBS operators in 12.2-12.7 GHz band (CD May 10 p5). Northpoint challenged MDS America claims that it was offering video and high- speed Internet services on continuing basis in 20 global markets. Ex parte letter was filed Wed. by Northpoint attorney Michael Kellogg with Office of Gen. Counsel. “We don’t want to be delayed while FCC figures out if MDS has something,” Northpoint Vp Toni Bush said: “It’s a serious issue to provide” FCC with “misleading information. Given the absence of evidence, the FCC should move forward with licensing” of Northpoint system. MDS America CEO Kirk Kirkpatrick disputed Northpoint allegations.

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Commission is evaluating several spectrum-sharing options, with strong focus on DBS band. Kirkpatrick, who said he hadn’t had opportunity to examine filing, told us it was another “attempt to confuse the issue” and situation wouldn’t be helped by “analyzing back and forth.” He said MDS America system was operational as described in its filing: “Even if we only have one system co-existing, that’s considerably more than any one else in the world.”

In March 12 FCC filing before it received experimental license, MDS America listed 8 sites it said were “representative” of its operations. Based on data provided to Commission, Northpoint charged MDS America “is not actually serving any subscribers on frequencies that are shared with DBS services” in 12.2-12.7 GHz band, “much less in the 20 countries claimed.” Itt said “MDS installations, if they exist at all, are not operating co-channel in the same geographic location” with DBS satellite services.

Northpoint cited New Zealand among service models presented to Commission for evaluation. MDS said service was being provided to Auckland and equipment was operating in bandwidth of 72 MHz from 12.338-12.410 GHz. Transponders on PanAmSat PAS-8 satellite and Optus BI and B3 satellites are listed for service, Northpoint said, but footprints don’t cover New Zealand with exception of one transponder where there’s potential overlap of 3 MHz. That transponder operates as “variable feed” for Australia and New Zealand, not as DBS service, Northpoint said.