AT&T Wireless Services Inc. is considering using some of its reserved personal communications services spectrum to solve capacity problems in high-density cellular markets.
The Time Division Multiple Access carrier owns hundreds of 10-megahertz PCS licenses that surround its existing markets. AT&T Corp. is expected to use most of those spectrum reserves to deploy fixed wireless service, which the corporation says will blanket 50 percent of the country.
AT&T Wireless, however, has struggled with capacity problems all year. The carrier’s introduction of the flat-rate Digital One rate plan in 1998 caused usage across AT&T Wireless’ network to skyrocket. The New York market in particular has been the subject of several media blasts as consumers complain about poor network quality, dropped calls and busy signals.
AT&T Wireless said in late October that it had increased capacity throughout its nationwide network by 63 percent since the beginning of the year. The carrier’s third-quarter results revealed slower subscriber growth because it stopped advertising in some markets to keep up with demand.
But it appears AT&T Wireless may need some extra spectrum as demand increases. In the Miami market, AT&T is testing an overlay network that combines service on both 850 MHz and 1900 MHz bands. Ericsson Inc. has installed 1900 MHz base stations in 12 of the Miami area’s most heavily used 850 MHz cell sites to offload capacity problems on the cellular network. Multiband handsets search for the band with the best level of service at the time.
“Since the amount of spectrum to carry calls is limited, we need to seek new ways to increase capacity with technology,” Greg Slemons, AT&T Wireless executive vice president for Wireless Network Services, said in a press release. “We intend to monitor any and all new technologies that will help us create more room for wireless calls on our network.”
AT&T Wireless did not comment, saying it was in a quiet period pending an initial public offering the new AT&T Wireless Group plans to issue this spring. AT&T Wireless will become the mobile unit of the new division headed by current AT&T President John Zeglis.
Steve Banner, technical solutions manager with Ericsson, said the network is an experiment for AT&T Wireless. The network could serve as a prototype for use in other problem markets.
“There’s no definite plans to tie up the frequency,” said Banner.
Bell Atlantic Mobile earlier this year purchased six 10-megahertz PCS licenses from Rivgam Communications L.L.C. to increase capacity and prepare for high-speed wireless data applications.
Analysts believe cellular operators will be at a disadvantage to their PCS counterparts when it comes time to load up data subscribers. Cellular operators hold 25 megahertz of spectrum in each market and are loaded with voice subscribers today.
Three-year-old PCS carriers have plenty of capacity and hold 30 megahertz of spectrum. Cellular operators fear they may have to slow down voice traffic to be able to offer significant data applications, analysts have commented.
