The growth potential of the wireless high-speed data market is inspiring companies to modify technology and previously unused spectrum to enable delivery of these data services. But the journey into this new territory does not come without problems, specifically in the United States where the Federal Communications Commission keeps a tight grip on spectrum and how it is used.
MDS America Inc. is hoping to use the shared digital broadcasting system spectrum in the 12.2-12.7 GHz frequency band to offer high-speed data and television service, despite fears and objections from satellite television companies that think MDS’ technology will cause interference.
The FCC granted MDS America an experimental license last week, giving the company free reign to test its technology in Florida. The license is effective through May 1 of next year. MDS said it has been offering similar service successfully for more than five years in other countries such as France, Iceland and New Zealand, where regulation has not been a problem.
Kirk Kirkpatrick, president and chief executive officer of MDS America, said the license is extremely important in demonstrating to the FCC that there is more than one company and technology capable of providing services in the 12.2- 12.7 GHz band. MDS fears the FCC will grant all the rights of this spectrum to a single company, possibly Northpoint Technology, which offers a similar service, and also claims it has the only technology uniquely capable of providing such services.
“We don’t want a monopoly granted to anybody,” said Kirkpatrick. “We believe the American consumer is better served if there is competition.”
MDS’ technology works by transmitting data and video from terrestrial towers over the same frequencies as satellite television signals at vertical angles less than those of satellites. The experimental permit from the FCC will allow MDS to demonstrate its technology and verify that MDS’ systems do not interfere with existing satellite signals coming in from a higher angle in space, the company said.
Subscribers to the service, under ideal conditions, would mount a 6-centimeter antenna inside their house. Under less ideal conditions, which could mean the subscriber is particularly far away from the transmitter, a 30-cm antenna would be mounted somewhere on the outside of the house. Kirkpatrick said the technology is capable of delivering data speeds up to 60 Megabits per second per transmitter, and MDS has demonstrated speeds up to 12 Mbps per individual customer. A transmitter can cover around 200 miles in any direction.
MDS also endorsed last week proposals by Northpoint and satellite television providers DirecTV and EchoStar. Northpoint wants to conduct a debate regarding spectrum-sharing issues in the 12.2-12.7 GHz band, and DirecTV and EchoStar are calling for a congressional hearing to examine the issue.
“While MDS America fully supports a debate, a congressional hearing might prove to be an even better forum to address the public policy issues related to spectrum-sharing between DBS and terrestrial service,” Kirkpatrick said.
Ultimately, MDS wants market forces, not the FCC, to determine the future of data and video delivery using DBS spectrum.
“The spectrum should undoubtedly be auctioned off because free-market competition has consistently proven to be the best way to introduce innovative technologies quickly, and to shape those technologies,” said Kirkpatrick.
