WASHINGTON-Petroleum Communications Inc. last week said it plans to challenge a Federal Communications Commission ruling that terminated the firm’s developmental licenses to operate a wireless local loop system in the Gulf of Mexico.
“PetroCom believes that being permitted to extend WLL service is essential to competitive communications in the Gulf,” said John Payne, president and chief executive officer of PetroCom. “We have provided a superior telecommunications solution by pioneering the Gulf’s WLL service.
PetroCom asked the FCC for permission to continue WLL service until the agency holds an auction for a permanent wireless local loop license. The FCC has not announced when it will hold the auction.
Last year, several competitors of PetroCom opposed the renewal of PetroCom’s developmental WLL license.
A coalition-composed of Shell Offshore Services Co., Rig Telephones Inc., Bachow/Coastal Operations L.L.C., Sola Communications Inc. and IWL Communications Inc.-accused PetroCom of making false statements to the commission as part of a scheme to commercialize the wireless local loop system under the guise of a developmental permit to avoid competing in the auction.
The coalition said PetroCom tried the same ploy when it sought to operate a cellular phone system under a developmental license, but was told by the commission it could not do so.
“This ruling, combined with pending mergers in our industry, could effectively eliminate meaningful competition in the Gulf’s microwave industry,” said Payne.
PetroCom pointed out that two of the firms that have opposed renewal of its developmental WLL authorization represent about 98 percent of the common carrier microwave service in the Gulf of Mexico.
The FCC issued a bureau-level letter ruling last month to PetroCom, headquartered in Harahan, La., and a wholly owned subsidiary of S&P Cellular Holding Inc.
“It is a serious disincentive to invest in advanced communications technology if holders of developmental licenses cannot recover costs until a permanent license is auctioned,” said Payne.
