National Assn. of Mfrs. (NAM) and its frequency coordination arm MRFAC warned FCC to not set “dangerous precedent” in 800 MHz rebanding proceeding. They cautioned Commission not to reward “interfering party with a major upgrade in its spectrum inventory at the expense of innocent licensees and additional competition.” FCC comment period closed last month on revised spectrum swap plan by Nextel, public safety groups and private wireless operators to alleviate interference to public safety licensees at 800 MHz. Compromise plan would divide band into noncellular block for public safety, business/industrial land transportation and specialized mobile radio users. Nextel would relocate to cellular block in that band, give up spectrum at 700, 800 and 900 MHz and receive additional capacity in unlicensed PCS and mobile satellite services spectrum. NAM told FCC last week that while agency was formulating longer term solution to interference problem, it should put in place best practices fix in interim. “Given the number of conflicting proposals currently before the FCC, the agency should ensure that a proper record is developed on the scope of the problem, and the costs and complexities of the various proposals before adopting a solution,” NAM said.
FCC adopted NTIA amendment for new rules specifying limits on permissible strength of out-of-band emissions from mobile earth stations. New rules were adopted because of concerns about interference with use of GPS or similar radionavigation services for airplane guidance during landing approach in 1559-1610 MHz frequency band that may be generated by mobile earth stations at 1610-1660.5 MHz and 1990-2025 MHz. Mobile earth station operators must ensure equipment covered by their licenses performs in compliance with new emission restrictions. Some companies may have to alter, replace or decommission equipment currently in service. FCC action will affect 10 companies that have applied for 2 GHz mobile earth stations that are subject to new rules, Commission said. Following limits were adopted for mobile earth stations (MES) placed in service before July 21: (1) MES with assigned uplink frequencies between 1610- 1660.5 MHz can’t exceed effective isotropic radiated power (EIRP) density level of -70 dBW/MHz, averaged over any 20 millisecond interval, in 1559-1587.42 MHz. EIRP of discrete emissions under 700 Hz bandwidth generated by earth stations can’t exceed 80 dBW, averaged over 20 milliseconds. (2) Uplink frequencies at 1610-1626.5 MHz can’t exceed EIRP of - 64 dBW/MHz in 1587.42-1605 MHz band. EIRP of discrete emissions of less than 700 Hz bandwidth can’t exceed -74 dBW, averaged over 20 milliseconds, in 1587.42-1605 MHz band. (3) Uplink frequencies at 1610-1660.5 MHz can’t exceed -70 dBW/MHz in 1559-1605 MHz band. Discrete emissions under 700 Hz are restricted to -80 dBW, averaged over 20 milliseconds in 1559-1605 MHz. (4) Beginning Jan. 1, 2005, density of MES emissions at 1610-1660.5 MHz (except Standard A Inmarsat terminals used as Global Maritime Distress and Safety System ship earth stations) can’t exceed -70 dBW/MHz in 1559-1605 MHz band or level in 1605-1610 MHz determined by linear interpolation from -70 dBW/MHz at 1605 MHz to -10 dBW/MHz at 1610, and EIRP of discrete emissions of less than 700 Hz bandwidth from MES can’t exceed -80 dBW in 1559-1605.
Candidates for unexpired term of the late Laska Schoenfelder on S.D. PUC differ on whether state agency has sufficient power to ensure consumers get fair prices and high-quality service from telecom and energy companies. Incumbent Robert Sahr (R), appointed in Dec. 2001 to replace Shoenfelder, is seeking election to 4-year unexpired portion of her term against Democrat Curt Johnson, currently S.D. public and school lands commissioner. Also on ballot will be incumbent Democrat Pam Nelson, seeking her 2nd 6-year term on PUC against GOP challenger Gary Hanson, former mayor of Sioux Falls. In published interviews in S.D. media, Johnson said PUC needed more enforcement tools so it could impose large fines and other sanctions on violators of its rules and regulations, and power to force utilities to disclose outside business interests that could affect their financial health. Sahr said PUC had authority needed for prodding utilities to address service problems. He said PUC could use reporting requirements to create record that it could use to deal with recalcitrant utilities. He said PUC’s first priority should be to solve immediate problem, then address rate or service changes. Candidates split on whether state antispam law passed in Feb. would curb problem of deceptive and unwanted e-mail advertising. Johnson said law wouldn’t do much because most spam originated from servers outside U.S., beyond reach of U.S. courts. But Sahr said law’s main strength was that it allowed ISPs to act against spam without fear of lawsuits. Both candidates agreed that PUC had important role to play as impartial information source for consumers of telecom and energy services, and in ensuring that companies provided customers with full disclosure. Both also agreed that PUC should remain elected body because it made public policy.
Wireless security policy just released by Defense Dept. keeps intact year-old moratorium on construction of new wireless networks at Pentagon and bars wireless connections to classified networks or computers. Long-awaited policy, released quietly in DoD memo last week, keeps in place July 2001 moratorium on installation of wireless network infrastructure at Pentagon and related facilities until: (1) Security vulnerabilities are assessed fully. (2) Wireless design for Pentagon is developed. (3) “Appropriate policies and procedures are established to support the responsible introduction of wireless technologies into the Pentagon” and shared facilities with common networks. Continued moratorium is “in recognition of the exploitable vulnerabilities that wireless devices introduce to Pentagon area facilities and networks,” memo said.
FCC is seeking comment on 2 petitions on how intercarrier compensation should apply to certain kinds of wireless traffic. Comments are due Oct. 18, replies Nov. 1. T-Mobile USA, Western Wireless and Nextel asked Commission last month to “reaffirm” that wireless termination tariffs weren’t proper mechanism for creating reciprocal compensation arrangements for transport and termination of traffic. Carriers sought declaratory ruling, telling FCC that commercial mobile radio service (CMRS) carrier usually interconnected indirectly with rural ILEC by exchanging traffic through intermediate carrier. Those indirectly interconnecting carriers typically exchanged traffic under bill-and-keep arrangements, not interconnection pacts, for mobile-to-land traffic, carriers said. Those arrangements were called into question recently when some rural LECs filed state tariffs to collect reciprocal compensation for termination of certain traffic originated by CMRS operators. Wireless carriers argued that compensation for traffic only should be paid when LEC and CMRS carrier had reached interconnection agreement under Sec. 251 of Communications Act. Otherwise, they said, such traffic should fall under bill-and-keep arrangements. Wireless carriers want FCC either to direct ILECs to withdrawn existing wireless termination tariffs or to declare them unlawful and void. Second petition on which FCC sought comment was filed by US LEC in Sept. seeking declaratory ruling for FCC to reaffirm LECs were entitled to recover access charges from IXCs for provision of access service on interexchange calls originating from or terminating on wireless networks. US LEC told FCC that industry practice was for IXCs to pay access charges to LECs for such traffic but that recently one IXC (not named in filing) had declined to pay charges.
Boeing received 6-year, $273 million contract from U.S. Air Force to design and develop first increment of wideband satellite communications terminals for Dept. of Defense (DoD) Family of Advanced Beyond Line-of-Sight Terminals (FAB-T), company said. (In military lingo, out-of-sight is defined as anything that can’t be seen and in this case term is used for antennas that transmit signals long distance via satellites.) FAB-T is intended to provide military with multimission- capable family of terminals that use common design, open system architecture to communicate with different satellites and enable information exchange among ground, air and space platforms.
Several local govts. that use public safety frequencies at 800 MHz raised concerns to FCC about coalition plan submitted by Nextel, public safety and private wireless groups to mitigate interference at 800 MHz. FCC comment period closed last week on revised spectrum swap plan submitted by Nextel, Assn. of Public Safety Communications Officials (APCO), Industrial Telecom Assn., others. Blueprint, designed to alleviate public safety interference at 800 MHz, would divide that band into noncellular block for public safety, business/industrial land transportation and traditional specialized mobile radio users. Nextel would relocate to 16 MHz cellular block in that band. Nextel, in return for giving up spectrum at 700, 800 and 900 MHz, would receive 5 MHz of unlicensed PCS spectrum at 1.9 MHz and another 5 MHz of reserve mobile satellite service spectrum. San Francisco Bay Area Rapid Transit (BART) told FCC it concurred with plan, but cautioned that proposed migration would be “onerous task.” It said “to date BART has already incurred significant expenses in maintaining and protecting its system from interference caused by CMRS operations.” BART estimated its costs under consensus plan would be $3-$5 million and nationwide costs would “greatly exceed” $500 million that Nextel had pledged. “Funding of any proposed private ’superfund’ to make payments to affected entities must be guaranteed by the federal government, and accordingly the payment procedure must be acceptable to the federal government as well as affected entities,” BART said. Dallas Area Rapid Transit (DART) said it agreed “in principle” with idea of regrouping different users at 800 MHz to avoid potential interference from commercial wireless operators. But DART said it couldn’t support consensus plan until questions were answered such as how current users would be defined and “assurances of the technical effectiveness and funding of the plan.” DART told FCC that goals it identified in its proposal that explored ways to mitigate interference “are not fully met by this plan. There is no guarantee that the grouping of safety users and the creation of a guard band would prevent or decrease interference, particularly instances of intermodulation.” DART, which uses public safety licenses at 800 MHz, said consensus plan didn’t include “key users” such as public transit. D.C. Office of the Chief Technology Officer (OCTO) said consensus plan “fail[s] to meet those requirements established by the public safety community. Specifically, there must be sufficient funds to complete the realignment.” OCTO said its realignment cost under plan could reach $60 million. City of Baltimore said it disagreed consensus plan represented “virtually all” users of 800 MHz band and didn’t believe that “interference problems are so pervasive that a nationwide overhaul of the entire band is needed.”
Capcom warned Thurs. it would report loss for current fiscal year because of ?23.1 billion one-time charge on sales of its real estate properties, Reuters reported from Japan. Osaka-based game maker said it now expected group loss of ?12.7 billion for year ending March 31 instead of earlier anticipated ?3.8 billion profit. Capcom said: “We have decided to sell all of our land and buildings to strengthen our financial footing and to utilize our assets effectively.” Other than special charge, company said sales of its games also were slow in first half of year, although results were in line with demand for games overall in domestic market. Company has been faced with increasing administrative and sales costs, Reuters said. Capcom said, however, it still expected to reach targeted revenue of ?70.5 billion for year on strong results in N. America and new games scheduled to ship in 2nd half. It now expects to report ?17.8 billion loss for first half instead of ?1.1 billion profit it had forecast.
Critics of plan filed by Nextel, private wireless and public safety groups to mitigate public safety interference at 800 MHz expressed concern about coalition’s compromise rebanding proposal at FCC this week, including lack of full funding. Numerous mobile wireless, satellite, public safety and utility companies took issue with coalition’s description of rebanding blueprint as representing “consensus” proposal. City of N.Y. said plan crafted by Nextel and others outlined general framework for relocating public safety operations, but it still had concerns that funding, beyond $500 million already pledged by Nextel be identified up-front. AT&T Wireless, Boeing and Verizon Wireless were among commenters lining up against Nextel plan. Meanwhile, backers of compromise proposal told FCC they would fill in details of their funding arrangements by Oct. 23.
In research note to investors Mon., SWS Securities analyst Arvind Bhatia reiterated “strong buy” rating for stock in game maker THQ. He said company’s “stock has been up 6 out of 7 times in calendar 4th quarter since 1995,” adding: “We believe this is not coincidental but a reflection of the company’s kids-oriented product mix, more suitable for the holiday season. The company’s product-mix comprises such strong brands as Rugrats, Scooby Doo, Jimmy Neutron, Bob The Builder, Power Rangers, Rocker Power, Hot Wheels, Matchbox, Wild Thornberry, Battlebots, Monsters Inc.” Bhatia said last, which recently shipped for GameCube, “could benefit from the extremely strong DVD/video launch of Disney/Pixar’s Monsters Inc., which sold 5 million units on DVD and video in N. America on its first day: “THQ’s future product lineup includes several titles based on licenses from Disney/Pixar and Marvel Enterprises. Separately, we believe the recent title shift between Q3 and Q4 [of select titles] will have a net neutral effect.” Bhatia said 3 PC games -- Bob the Builder, SpongeBob SquarePants: Revenge of the Flying Dutchman and Rugrats Munchkin Land -- “although planned for Q4 have already been shipped. However, Virtua Tennis [for Game Boy Advance], Rocket Power Beach Bandits (GBA) and Jimmy Neutron: Boy Genius (GameCube), have been moved from Q3 to Q4… We believe the company has repurchased some shares under its recently authorized buyback program (up to $25 million). We believe the share repurchase program is particularly appropriate given the company’s strong balance sheet -- $228.6 million in cash ($5.44 per share), no debt and the lagging stock performance. The buyback, if fully executed at current prices, could add up to 4? to our EPS estimate of $1.71 per share.”