Omnipoint Corp. is one among a handful of PCS innovators promised a reward by the Federal Communications Commission for enterprising work in personal communications services. But three years and $350 million dollars later, its pioneer’s preference award for the New York City license might seem more like a pat on the back to company President Doug Smith.
Nevertheless, Omnipoint bears technology as its weapon in the competitive PCS arena.
In the early 1980s, Smith sought a way to wirelessly transmit data at high speeds. With his background in database management systems, Smith recognized a need to resolve a bottleneck problem in local and wide area networks resulting from large amounts of data transmitted via groundlines, he said.
His ambition, coupled with the scientific triumphs of Robert Dickson, now Omnipoint’s chief scientist, eventually led to the company’s inception. Dickson is a pioneer of spread spectrum technology, said Mark Vonarx, Omnipoint director of sales and marketing, noting Dickson wrote the first textbook on the subject. Just prior to forming Omnipoint, Dickson had founded Spread Spectrum Sciences, oriented toward military defense applications.
Originally incorporated as Omnipoint Data Corp. in Colorado Springs, Colo., Smith and Dickson officially set up shop in 1987, following the legalization of spread spectrum technology for commercial use. Smith said the company developed the first spread spectrum wireless module and thereafter the first spread spectrum wireless telephone.
Omnipoint’s efforts were focused on 1.9 GHz communications by 1991. The company was part of a small group that worked with the FCC in formulating frequency specifications for PCS and recommendations on the PCS licensing process.
Smith contended Omnipoint was among a few to suggest PCS operate using 30 megahertz blocks in the 1.9 GHz band. “Most said 1.9 GHz is too high,” said Smith and, “Motorola (Inc.) said you couldn’t put spread spectrum in a handset.” Smith noted Omnipoint’s spread spectrum technology was designed specifically to operate at 1.9 GHz.
Prior to PCS radio spectrum, licensing was achieved through lengthy comparative hearings and lotteries, explained Smith and Vonarx. Then former FCC Commissioner Henry Geller proposed a mechanism to reward innovation, said Vonarx. Omnipoint received its pioneer’s preference award in October 1992.
While Omnipoint-as well as pioneer’s preference winners Cox Communications Inc. and American Personal Communications-initially was denied an award for its pioneering efforts, the company has and continues to profit in licensing its Interim Standard-661 direct sequence spread spectrum-based digital technology. IS-661 is often described as a composite Code Division Multiple Access/Time Division Multiple Access technology and an upgrade to Global System for Mobile communications.
Only Omnipoint technology is currently capable of transmitting data at 64 kilobits per second, said Smith, as well as multiples of 64 kbps. As such, its applications are numerous. “No other technology can do past 9,600 (bits per second),” claimed Smith. “The next generation is going to expect high speed transmission.”
Last month Omnipoint licensed IS-661 to Japan Radio Corp. for use in PCS handsets. “This agreement with JRC is a key step in assembling a team of world class manufacturers that are fulfilling the promise of this unique technology,” said Smith.
Omnipoint also has licensed IS-661 to Northern Telecom Ltd. The companies agreed to develop IS-661-based networks to be marketed to other operators and Omnipoint agreed to purchase at least $100 million in PCS system equipment from Nortel.
Smith reaffirmed Omnipoint’s plans to participate in the PCS C-block entrepreneur auctions, even though Omnipoint filed a lawsuit that has delayed the auction. Smith indicated the company objects to guidelines adopted after the Supreme Court curbed affirmative action programs in June. In addition to eliminating race and gender based bidding credits, the rules allow single investors to hold up to 49.9 percent in any applicant.
