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#TBT: Sprint posts strong Q1 growth, losses; FCC plans for 3G … 16 years ago this week

Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!

Sprint PCS posts $1.46 per share loss
Sprint Corp. announced April 20 first-quarter consolidated revenues of $4.72 billion, a 16-percent increase from the $4.08 billion posted for the same period of 1998. The next day Sprint said it awarded Lucent Technologies Inc. a $780 million equipment contract. Kansas City, Mo.-based Sprint is divided into Sprint FON Group, which comprises core wireline operations, and Sprint PCS Group, which consists of its wireless personal communications services operations. Sprint PCS posted revenues of $604.2 million, nearly triple the $203.3 million it earned during the first quarter of 1998. However, its net losses for the latest complete quarter were $625.5 million vs. $145.2 million for the year-ago quarter. … Read More

Carriers to meet on 3G in Tokyo
The world’s carriers are set to meet in Tokyo this week for another round of discussions on converging Code Division Multiple Access-based third-generation technology. The International Telecommunication Union adopted a framework in March resulting in a single flexible standard with a choice of multiple access methods including CDMA, Time Division Multiple Access and TD/CDMA technologies. The CDMA standard encompasses three optional modes: direct sequence frequency division duplex; multi-carrier frequency division duplex; and multi-carrier FDD and TDD. … Read More

FCC expected to designate 3G spectrum bands this year
The Federal Communications Commission should narrow down in six months which frequency bands it could allocate for third-generation mobile phone services. The World Administrative Radiocommunication Conference is 14 months away, and the United States wants to forge a position on additional spectrum and which frequency bands it will use for the next generation of mobile phone services. Industry estimates it needs a total of 390 megahertz of spectrum to operate 3G terrestrial systems in 2010. This is about 200 megahertz more than what the FCC has allocated already for PCS, cellular and enhanced special mobile radio operators. The anticipated new 3G services will enable portable data rates of 384 kilobits per second and global roaming. … Read More

Motorola backs off paging system business
Motorola Inc. and Glenayre Technologies Inc. signed a memorandum of understanding that, if fulfilled, will license Glenayre to manufacture all Motorola’s paging infrastructure-effectively heralding Motorola’s exit from the paging infrastructure manufacturing business. “We need to focus on the things we do best,” said Amanda Dahlke, spokeswoman for Motorola’s Paging Systems Group. She said Motorola intends to shift attention away from paging infrastructure-which she noted was a small portion of Motorola’s overall business-in favor of increased attention to paging subscriber devices, protocol enhancements and applications development. … Read More

FCC delays, cellular opposition affect AirCell business
The recent battles at the Federal Communications Commission between AirCell Inc. and the cellular carriers that oppose its air-to-ground communications system may be starting to affect AirCell’s business. In a letter sent to Steve Weingarten of the Commercial Wireless Division of the Wireless Telecommunications Bureau, Michele Farquhar, a partner with Hogan & Hartson L.L.P., said AirCell customers have begun to express frustration with AirCell’s lack of sites and coverage. Although it received permission from the FCC to operate the system just a few months ago, Aircell said its buildout efforts have been hindered by breakdowns in the notification and coordination process and a lack of progress on pending follow-on waiver petitions at the FCC. … Read More

Digital wireless drives DSP market
After coming off one of its worst years in history, the semiconductor industry continues to show signs of recovery. The industry finished last year with total sales of $125.6 billion, a decrease of 8.4 percent from year-end 1997 sales, according to the Semiconductor Industry Association. The industry was expected to post decreases in sales for 1998 of more than 10 percent, but it was boosted by a slight rally during the fourth quarter. Dataquest Inc., a unit of Gartner Group Inc., said the worldwide semiconductor market suffered its biggest decline since 1985, when the market declined by more than 15 percent. Despite the sluggish year for the overall semiconductor market, Dataquest said the market for digital signal processors grew 5.4 percent due in part to increasing rollouts of digital mobile phones and cellular infrastructure. … Read More

Motorola beats earnings estimates
Analysts last week hoped Motorola Inc. would shed some light in its earnings conference call on whether it will need to raise more money or take additional charges to cover its Iridium L.L.C. debt exposure, but the company avoided any specific questions on the matter. “Our comments are limited because Iridium is public,” said Robert Growney, president and chief operating officer of Motorola. “We are monitoring the situation very closely and will be evaluating Iridium’s new business plan as it evolves. Whether we give any additional financial support will depend on the content of the revised business plan, negotiations with their banks and approval from our board of directors.” … Read More

PCIA supports Cook on interconnection fight
The Personal Communications Industry Association supported Cook Telecom Inc. in its continuing battle for interconnection rights and termination compensation from Pacific Bell Inc. Cook Telecom is a one-way paging carrier in California that has been in a legal duel with Pacific Bell ever since the California Public Utility Commission arbitrated a decision allowing Cook interconnection rights and termination compensation. Pac Bell has appealed the decision at every step, first to the CPUC, then to the U.S. District Court for the Northern District of California. Each appeal has been denied and the matter is now before the U.S. 9th District Court of Appeals. … Read More

Aerial customer additions lag in first quarter
Personal communications services operator Aerial Communications Inc. managed to decrease its historically high churn rate during the first quarter, but customer additions were less than expected. Aerial added 20,000 customers during the first quarter, ending the quarter with 330,000 subscribers. The company’s post-pay churn rate declined from 4.3 percent the previous quarter to 3.5 percent. Aerial President and Chief Executive Officer Don Warkentin said ongoing operational improvements reduced costs, while Aerial reported its highest customer ratings ever during the first quarter. New pricing plans introduced during the quarter should reduce the company’s need for promotional pricing going forward, said Warkentin. … Read More

FCC exempts wireless from most truth-in-billing regs
The Federal Communications Commission last week told wireless carriers that bills to their customers must include their name, a phone number where billing questions can be answered, and carriers must use standardized language regarding federally mandated charges listed separately on bills. Wireless carriers are excluded from most of the rules of the highly touted truth-in-billing proceeding. The agency told wireline telecom carriers they clearly must tell if a customer is being billed for a service offered by a different service provider than the one issuing the bill. The FCC also released a further notice of proposed rule making specifically asking whether wireless should be excluded from this mandate. … Read More

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