Spectrum availability and how wireless technology can help bridge digital divide will dominate wireless policy arena this year, CTIA Pres. Thomas Wheeler said at press lunch Tues. He said CTIA was “very hopeful” FCC would address industry concerns on spectrum cap. CTIA has been urging agency to lift 45 MHz cap for all but rural markets, where ceiling is 55 MHz. Wheeler pointed out that in past FCC orders that dealt with cap, newly named Chmn. Powell had questioned why existing ceiling should remain intact. Lifting it would provide “interim relief” while 3rd-generation policy debates continued on whether and how to free additional spectrum for advanced mobile services, he said. Lifting cap “will buy you the 18 months that you need to get to the tough decisions,” he said, referring to 3G. Wheeler stressed prominent role Japan and European countries have taken in wireless Internet, in part by govt. policies that have made spectrum available and issued licenses. “God bless the Clinton Administration for starting the spectrum policy review process,” Wheeler said of 3G. “But they couldn’t bring it to fruition. And it now falls to the Bush Administration to deal with the really hard parts and make decisions.” Wheeler praised NTIA proposal last week on reimbursement for federal agencies that must relocate from existing spectrum (CD Jan 18 p2). NTIA outlined changes on how private sector could reimburse agencies, including possible relocations connected to 3G decisions involving military spectrum. “It might just be the underlying key point so far to be raised in breaking whatever gridlock there might be in creating access to spectrum,” Wheeler said. As for Verizon Wireless’s request to FCC last week that agency delay 700 MHz auction beyond March 6, he said he still was making calls to members on group’s position. (Comments are due Jan. 24). “Their concern is not an illegitimate concern,” Wheeler said of request to push back bidding for at least 2 months but preferably until Sept. 6. “You have to be in a position where you can work out bidding alliances, structures and trading spectrum and all these kinds of things to get you set for the next auction. But you are prohibited, because there’s an ongoing auction, from doing those very things.” In other policy areas, Wheeler said he hoped agency would address outstanding issues such as calling-party-pays and reciprocal compensation and privacy, including CTIA’s Nov. petition that proposed privacy principles covering mobile location-based services. He said he was hopeful FCC would move on privacy issues, although he said there was intra-agency debate on whether it belonged in Common Carrier or Wireless bureaus.

U.S. Appeals Court, D.C., sided with U S West Tues. and remanded FCC order that had denied company’s request for forbearance of dominant carrier regulation for provision of high- capacity services in Phoenix and Seattle. Court ruled that FCC was inconsistent when it denied U S West’s petition for lack of reliable data on market share. To gain lessened regulation, U S West had to prove it faced competition for provision of high- capacity services in those 2 cities. In opinion written by Chief Judge Harry Edwards, court said FCC in past had relied on other measures such as elasticity to determine existence of competition and in one case made nondominance determination “in the absence of any market share data.” Court remanded case because FCC never specifically said market share was “essential” to prove competition, Edwards said. Court denied related petition by AT&T and WorldCom that questioned appropriateness of FCC’s telling U S West it still might qualify for pricing flexibility under separate process even though it lost forbearance request. AT&T and WorldCom argued that such language was backdoor way of giving U S West relief but Edwards called that argument “specious claim.” He said it was “clear that the forbearance order does nothing more than indicate that U S West is eligible to apply for relief under the pricing flexibility order.” However, court also denied suggestion by FCC counsel in oral argument that availability of pricing flexibility process lessened need for forbearance requests. Edwards said “U S West and other such petitioners are entitled to pursue forbearance under [Sec. 10 of Telecom Act] without regard to the pricing flexibility order.” Court panel also included Judges David Sentelle and Raymond Randolph.

Korean and European patent officials upheld CDMA patents held by Qualcomm, rejecting oppositions. Korean Intellectual Property Office upheld Qualcomm patent on control of transmitter power to overcome fading and reducing interference within telecom system to bolster network capacity. In separate proceeding, office also rejected opposition to Qualcomm patent that describes method for formatting data for transmission. Separately, European Patent Office confirmed patent that relates to processor used in CDMA receivers to normalize incoming blocks of data. Qualcomm disclosed decisions Tues., although European ruling was issued last month and Korean decisions earlier this month.

FCC’s C- and F-block auction continued to linger around $16.8 billion mark Tues., with Verizon Wireless remaining virtually unchanged in top slot with $8.8 billion in high bids. In sign that bidding for 422 PCS licenses continued to drag, as few as 9 new bids were made in one round Tues. afternoon. In last 10 rounds, bids have increased only $150 million. In all, auction has gone 85 rounds since starting Dec. 12. AT&T Wireless-backed Alaska Native Wireless had $2.9 billion in high bids, followed by Cingular Wireless-backed Salmon PCS with $2.3 billion, DCC PCS with $546.1 million, Cook Inlet with $499.2 million, VoiceStream PCS with $482.3 million and Leap Wireless International with $350 million. Licenses still drawing new bids are mostly smaller markets in southern and western parts of country. Separately, Leap Wireless said late Tues. it had reached agreement with Qualcomm, which will provide wireless carrier with $125 million in financing to support its bidding. Qualcomm is planning to transfer to Leap auction discount voucher it previously received from agency. Qualcomm stipulated it had no role in auction. Leap said it would repay Qualcomm for value of voucher in form of loan payable in single payment within 5 years. Qualcomm had received voucher from FCC as part of litigation settlement involving pioneer’s preference license.

Nextel Partners posted loss of $202.2 million from operations in 2000, up from $71.6 million in 1999. Company said loss includes stock-based compensation expense of $70.1 million. Due in part to strong subscriber growth, Nextel Partners had revenue of $135.9 million in 2000, vs. $32.7 million in 1999. Company ended year with 227,400 digital subscribers, up from 181,300 at end of 1999.

LAS VEGAS -- Broadcasters and other regulated industries can expect from new FCC “a greater feel for the law… and a more humble approach,” FCC Comr. Furchtgott-Roth said here. Commission will regulate “only what the law requires… and it will be a greater day at the FCC,” he told ALTV panel Mon. afternoon. Michael Powell, who had been FCC chairman for just a few hours, deferred first question from ALTV’s David Donovan -- on what changes broadcasters could expect under Bush Administration -- to his Republican colleague, after which Powell said “my final sincere hope” is that agency would become “more efficient and responsive” to needs of those it regulated: “The greatest enemy of regulation is… uncertainty.” After panel, longtime Washington lawyer told us: “We're in for a sea change of deregulation if you follow their comments to their logical conclusion.”

Qualcomm subsidiary SnapTrack received wireless location and asset-tracking patent from U.S. Patent & Trademark Office. Patent covers methods for remotely locating wireless device via client- server systems that use computer network or Web to initiate request on position of device. Device’s position is made known through data or graphic display, SnapTrack said.

PanAmSat began 6-month beta test of high-speed Net/36 network designed to deliver IP audio, video and data to ISPs with goal of starting commercial service by midyear. Beta test is using 1-2 transponders aboard PanAmSat Galaxy satellite, Qwest Communications DSL service in western U.S. and Excite@Home cable modem network on both coasts, CEO Douglas Kahn said Mon. at C.E. Unterberg, Towbin satellite conference in N.Y.C. Agreements with BellSouth and Hughes Network Systems’ DirecPC in addition to Qwest and Excite@Home give Net36 access to 3.5 million homes in U.S., although goal is to pass 16 million worldwide as service expands to 24 transponders by 2004, he said. PanAmSat will spend $250 million in developing service and draw heavily on fleet of 21 satellites to deliver it worldwide, Kahn said. Of 16 million homes, half will be in U.S., others in Europe and Asia, he said. Plan is to have Net/36 act as middleman in delivering programming content to edge of DSL and cable modem networks. PanAmSat has agreements with dozen programmers including ABC-TV, Walt Disney Co., Bloomberg TV and Hollywood.com, Kahn said. Despite start of beta test, PanAmSat still has several hurdles to clear, including digital rights management issues raised by content providers. “This concern has taken on a tremendous amount of significance for them and we'll have to address that,” Kahn said. Adoption of Net/36 platform among broadband service providers also has been slower than expected, he conceded. Number of homes that had access to Net/36 stood at “several hundred thousand” in late Nov. before additions were made in following month, he said. “We're going to invest a little bit less [in Net/36] this year because we expect the revenues are going to be a little bit slower,” Kahn said. Executive conceded that PanAmSat had been “frustrated” at pace of DSL deals, noting that even after reaching agreements, RBOCs “are not fast movers” in deploying technology. PanAmSat also is aggressively pursuing Ka-band spot beam satellite business and is likely to enter market with 2 birds, Kahn said. PanAmSat has received authorization for 7 Ka-band slots, with 5 others pending, he said. While PanAmSat had aimed to have some Ka-band agreements secured by late last year, Kahn said it was likely no deals would be signed by midyear. “Our objective is to be comfortable with what the spot beams are going to be used for,” he said. “It’s better to take a little bit more time to get it right.”

Wireless Communications Assn. annual technical symposium that ended Fri. in San Jose drew record attendance of 1,185, up from 235 year ago. Next technical symposium is set for June 24-27 in Boston.

FCC Wireless Bureau is seeking comment on informal request by International Assn. of Fire Chiefs/International Municipal Signal Assn. (IAFC/IMSA) for frequency coordination certification in 800 MHz and 900 MHz public safety pool Private Land Mobile Radio (PLMR) frequencies. In 1998, FCC created plan for reallocation of 700 MHz band to public safety use, allowing any of certified frequency public safety coordinators, including IAFC/IMSA, to provide coordination. Agency hasn’t taken similar steps to alter frequency coordination process for 800 MHz and 900 MHz PLMR bands. Assns. contended that because of similarities between PLMR systems in bands such as 700 MHz and 800 MHz and 900 MHz public safety channels, IAFC/IMSA would be equally qualified to coordinate applications in those upper bands. Comments are due Feb. 21, replies March 8. Separately, bureau is seeking comments on similar request last month by American Assn. of State Highway & Transportation Officials (AASHTO). Request involves frequency coordination certification in 800 MHz PLMR public safety radio service frequencies. Comments also are due Feb. 21, replies March 8.