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A History Lesson: Wireless Spectrum “Crisis” Hoopla vs. Solid Network Engineering

Phillip Dampier April 18, 2012 AT&T, Audio, Bell (Canada), Broadband "Shortage", Competition, Consumer News, Editorial & Site News, History, Public Policy & Gov't, Rogers, Sprint, T-Mobile, Verizon, Video, Wireless Broadband Comments Off on A History Lesson: Wireless Spectrum “Crisis” Hoopla vs. Solid Network Engineering

“Somehow in the last 100 years, every time there is a problem of getting more spectrum, there is a technology that comes along that solves that problem. Every two and a half years, every spectrum crisis has gotten solved, and that’s going to keep happening. We already know today what the solutions are for the next 50 years.” — Martin Cooper, inventor of the portable cell phone

Despite the fear-mongering by North America’s wireless phone companies that a spectrum crisis is at hand — one that threatens the viability of wireless communications across the continent, some of the most prominent industry veterans dispute the public policy agenda of phone companies like AT&T, Verizon, Bell, and Rogers.

Martin Cooper ought to know.  He invented the portable cell phone, and remains involved in the wireless industry today.  Cooper shrugs off cries of spectrum shortages as a problem well-managed by technological innovation.  In fact, he’s credited for Cooper’s Law: The ability to transmit different radio communications at one time and in the same place has grown with the same pace since Guglielmo Marconi’s first transmissions in 1895. The number of such communications being theoretically possible has doubled every 30 months, from then, for 104 years.

National Public Radio looks back at the earliest car phones, which weighed 80 pounds and operated with vacuum tubes. Innovation, improved technology, and lower pricing turned an invention for the rich and powerful into a device more than 300,000,000 North Americans own and use today. (April 2012) (3 minutes)
You must remain on this page to hear the clip, or you can download the clip and listen later.

A traditional car phone from the 1960s.

The earliest cell phones have been around since the 1940s.  St. Louis was the first city in the United States to get Mobile Telephone Service (MTS).  It worked on three analog radio channels and required an operator to make calls on the customer’s behalf. By 1964, direct dialing from car phones became possible with Improved Mobile Telephone Service (IMTS), which also increased the number of radio channels available for calls.

In the 1970s, popular television shows frequently showed high-flyers and private detectives with traditional looking phones installed in their cars.  But the service was obscenely expensive.  The equipment set customers back $2-4,000 or was leased for around $120 a month.  Local calls ran $0.70-1.20 per minute.  That was when a nice home was priced at $27,000, a new car was under $4,000, gas was $0.55/gallon, and a first run movie ticket was priced at $1.75.

With many cities maintaining fewer than a dozen radio channels for the service, only a handful of customers could make or receive calls at a time.  The first “spectrum crisis” arrived by the late 1970s, when car phones became the status symbol of the rich and powerful (the middle class had pagers). Customers found they couldn’t make or receive calls because the frequencies were all tied up.  Some cities even rationed service by maintaining waiting lists, not allowing new customers to have the technology until an existing one dropped their account.

Instead of demanding deregulation and warning of wireless doomsday, the wireless industry innovated its way out of the era of MTS altogether, switching instead to a “cellular” approach developed in part by the Bell System.

[flv width=”412″ height=”330″]http://www.phillipdampier.com/video/ATT Testing the First Public Cell Phone Network.flv[/flv]

In the 1970s, when the first cell phone “spectrum crisis” erupted, the Bell System innovated its way out the the dilemma without running to Congress demanding sweeping deregulation.  This documentary, produced by the Bell System, explores AMPS — analog cell phone service, and how it transformed Chicago’s mobile telephone landscape back in 1979.  (9 minutes)

“Arguing that the nation could run out of spectrum is like saying it was going to run out of a color.” David P. Reed, one of the original architects of the Internet

Instead of one caller tying up a single IMTS radio frequency capable of reaching across an entire city, the Bell System deployed lower-powered transmitters in a series of hexagonal “cells.”  Each cell only served callers within a much smaller geographic area.  As a customer traveled between cells, the system would hand the call off to the next cell in turn and so on — all transparently to the caller.  Because of the reduced coverage area, cell towers in a city could operate on the same frequencies without creating interference problems, opening up the system to many more customers and more calls.

Inventor Martin Cooper holds one of the first portable mobile phones

In Chicago, Bell’s IMTS system only supported around a dozen callers at the same time. In 1977, the phone company built a test cellular network it dubbed “AMPS,” for Advanced Mobile Phone System.  AMPS technology was familiar to many early cell phone users.  It was more popularly known as “analog” service, and while it could still only handle one conversation at a time on each frequency, the system supported better call handling and many more users than earlier wireless phone technology.  By 1979, Bell had 1,300 customers using their test system in Chicago.

AMPS considerably eased the “spectrum crunch” earlier systems found challenging, and subsequent upgrades to digital technology dramatically increased the number of calls each tower could handle and allowed providers to slash pricing, which fueled the spectacular growth of the wireless marketplace.

Yesterday it was voice call congestion, today it is a “tidal wave” of wireless data.  But inventors like Cooper believe the solution is the same: engineering innovation.

“Somehow in the last 100 years, every time there is a problem of getting more spectrum, there is a technology that comes along that solves that problem,” Cooper told the New York Times. “Every two and a half years, every spectrum crisis has gotten solved, and that’s going to keep happening. We already know today what the solutions are for the next 50 years.”

Cooper believes in the cellular approach to wireless communications.  Dividing up today’s geographic cells into even smaller cells could vastly expand network capacity just like AMPS did for Windy City residents in the late 1970s. Using especially directional antennas focused on different service areas, placing new cell towers, innovating further with tiny neighborhood antennas mounted on telephone poles, or building out Wi-Fi networks can all manage the data capacity “crisis” says Cooper.

New technology also allows cell signals to co-exist, even on the same or adjacent frequencies, without creating interference problems. All it takes is a willingness to invest in the technology and deploy it across signal-congested urban areas.

Unfortunately, network engineers are not often responsible for the business decisions or public policy agendas of the nation’s largest wireless companies who are using the “spectrum crisis” to argue for increased deregulation and demanding additional radio spectrum which, in some cases, could be locked up by companies to make sure nobody else can use them.

[flv width=”600″ height=”358″]http://www.phillipdampier.com/video/NY Times Mobile Carriers Warn of Spectrum Crisis.flv[/flv]

The New York Times offers this easy-to-follow primer on wireless spectrum and why it matters (or not) in the current climate of explosive growth in mobile data traffic.  (3 minutes)

“Their primary interest is not necessarily in making spectrum available, or in making wireless performance better. They want to make money.” — David S. Isenberg, veteran researcher, AT&T Labs

Innovation, not wholesale deregulation, allowed the Bell System to solve the spectrum crisis of the 1970s by creating today's "cell system" that can re-use radio frequencies in adjacent areas to handle more wireless traffic.

Spectrum auctions bring billions to federal coffers, but actually deliver a hidden tax to cell phone customers who ultimately pay for the winning bids priced into their monthly bills.  It also makes it prohibitively expensive for a new player to enter the market.  Already facing enormous network construction costs, any new entrant would then face the crushing prospect of outbidding AT&T, Verizon Wireless, Bell or Rogers for the frequencies essential for operation.

As the New York Times writes:

When a company gets the license for a band of radio waves, it has the exclusive rights to use it. Once a company owns it, competitors can’t have it.

Mr. Reed said the carriers haven’t advocated for the newer technologies because they want to retain their monopolies.

Cooper advocates a new regulatory approach at the Federal Communications Commission — one that mandates wireless phone companies start using today’s technology to amplify their networks.

Cooper points to one example: the smart antenna.

Smart antennas direct cell towers to focus their transmission energy towards the specific devices connected to it.  If a customer was using their phone from the southern end of the cell tower’s coverage area, why direct signal energy to the north, where it gets wasted?  New LTE networks support smart antenna technology, but carriers have generally avoided investing in upgrading towers to support the new technology, expected to be commonplace inside new wireless devices within two years.

T-Mobile calls these technology solutions “Band-Aids” that won’t address the company’s demand for more frequencies to manage its network.  But that kind of thinking applied to the mobile phone world of the 1970s would have maintained the exorbitantly expensive IMTS technology discarded decades ago, since replaced by innovation that made more efficient use of the spectrum already on hand.  That innovation also transformed wireless phones from a tool (or toy) for the very wealthy to an affordable success story that now threatens the traditional wired phone network in ways the Bell System could have never envisioned.

[flv width=”412″ height=”330″]http://www.phillipdampier.com/video/Its a Whole New System.flv[/flv]

It’s A Whole New System: AT&T and other wireless phone companies might want to learn the lesson the Bell System was trying to teach their employees back in 1979: Meet Change With Change.  This company-produced video implores the phone company to do more than the same old thing.  No, this video is not “PM Magazine.”  It is about innovation and actually listening to what customers want. With apologies to Mama Cass Elliot, there was indeed a New World Coming — the breakup of the Bell System just five years later.  Don’t miss the diabetic-coma-inducing, sugary-sweet jingle at the end.  Then reach for a can of Tab.  (10 minutes)

Retired Verizon Employee Tells Rural Upstate New York “Fiber Optics is Old School”

Schuyler County

The fastest thing in Schuyler County, N.Y., isn’t broadband — it’s the Watkins Glen International speedway.

County officials hope to change that, voting unanimously this month to approve an agreement with the Southern Tier Network to bring a regional fiber optic system into the county.

The not-for-profit local development corporation established to build and manage the regional fiber network doesn’t sit well with some county residents, however, including one retired Verizon employee who dismissed the project.

Odessa resident Karen Radenberg called fiber optics technology “old school” and said no private company will connect to the fiber network to expand broadband service.

Radenberg urged the county to consider that communications companies have now moved on to using 4G wireless technology instead of fiber.

“That’s ridiculous,” countered Legislature Chairman Dennis Fagan (R-Tyrone).

Fagan

Fagan pointed to nearby Ontario County’s fiber middle-mile and institutional network which has signed companies, including Verizon, as customers.  Verizon reportedly uses the Ontario County network to deliver backhaul connectivity to its cell tower network in the area.  Ontario County is served by several different landline companies including Frontier Communications, Verizon, and Windstream.  Time Warner Cable is the dominant cable provider, but large sections of the county are deemed too rural for cable television service.

Fagan said the new fiber network will improve the chances private companies will expand broadband across the county, but also help deliver an important upgrade to the region’s emergency responder communications system.  The extremely hilly terrain across much of the southern tier creates problems because of signal gaps.  The new fiber network will allow the county to build radio repeaters into areas where the existing network of microwave communications towers cannot reach.

Schuyler County currently has no plans to sell Internet connectivity to the public, but hopes existing private cable and phone companies — including Time Warner Cable and Verizon Communications — will consider utilizing the network to expand service.  Neither company has shown much interest expanding service to new areas recently, most likely because expansion costs will not be recouped fast enough.

If the county network reduces the cost to expand service, more homes and businesses may now fall within a “Return on Investment” formula that could mean the difference between broadband and dial-up.

[Updated With Video] T-Mobile’s Ad Star Drops Dress for Get Tough-Biker Leather; Wireless Competition is Back

She’s back and wants to “set the record straight.”

T-Mobile’s familiar ad star is dropping her amazing pink dresses like these 2024 short pink prom dresses for some get-tough biker leather in a new series of commercials for the wireless carrier.

Canadian actress-model Carly Foulkes has appeared in “approachable”-wear designed by Debra LeClair since 2010, mostly chiding competitors like AT&T for tricky fees and “gotchas” that T-Mobile doesn’t charge. Typically amused by the antics of other wireless carriers, she promised relief for customers switching to T-Mobile’s value-oriented wireless plans.

Nearly a year after the failed merger-buyout by AT&T was first announced, T-Mobile this week unveils a “brand refresh” that promises wireless customers it is back in the fight for their business.  Traditionally, T-Mobile has positioned itself as a low-cost, value-oriented provider.  Often, the company’s service plans and pricing have forced other wireless carriers to follow suit.  AT&T’s buyout of T-Mobile would have eliminated that aggressive pricing.

T-Mobile will spend millions on the new ad campaign.

In the first ad in the series, Foulkes metaphorically tears up T-Mobile’s image over the past year, perceived as supine as the company waited to be absorbed into AT&T’s empire.  Ripping through her closet, Foulkes emerges in black leather and hops on board a motorcycle, demanding that visitors test-drive T-Mobile’s 4G network speeds against AT&T, Sprint, and Verizon.

Before her biker phase

T-Mobile’s year-long courting by AT&T cost the company plenty.

At last 802,000 contract customers fled T-Mobile for the competition, many for Sprint and Verizon, some only to avoid dealing with AT&T.

Others left because T-Mobile is the last major carrier still not offering Apple’s popular iPhone.  

The company promises to invest at least $200 million in advertising its comeback and is keeping Foulkes front and center.  In fact, outside of Verizon’s “Can You Hear Me Now” campaign which ran for a decade, ending last April, no spokescharacter has proved as recognizable as Foulkes.

The motorcycle theme will focus viewers on T-Mobile’s 4G network speeds.  Customers perceived that T-Mobile stopped upgrading and expanding its network while it pursued a merger with AT&T.

T-Mobile continues to claim it operates the nation’s largest 4G network, operating with HSPA+ technology.

T-Mobile’s “4G” network does deliver speed improvements over 3G, but some have dubbed HSPA+ “3.5G,” because resulting speeds usually cannot compete with 4G LTE technology.

T-Mobile plans to spend $1.4 billion to build its own LTE network to launch in 2013.

[flv width=”640″ height=”380″]http://www.phillipdampier.com/video/T-Mobile Relaunch Ad.flv[/flv]

T-Mobile’s “brand refresh” starts with this ad, “No More Mr. Nice Girl.”  (1 minute)

‘VerizonWarner’ Cable Collaboration Launched: $200 Rebate for Cable+Wireless Phone

Phillip Dampier April 12, 2012 Consumer News, Public Policy & Gov't, Verizon, Wireless Broadband Comments Off on ‘VerizonWarner’ Cable Collaboration Launched: $200 Rebate for Cable+Wireless Phone

Time Warner Cable and Verizon Communications have teamed up to sell both companies’ products to their respective customers, sweetened with a $200 rebate card offer.

The collaboration comes well before the federal government approves a wireless spectrum transfer between the cable operator and Verizon Wireless.  Both companies are under scrutiny in Washington for potentially anti-competitive behavior associated with the joint marketing agreement.

Today Time Warner Cable launched the new promotion in Raleigh, N.C., Kansas City, and three cities in Ohio — Cincinnati, Columbus, and Toledo.  Time Warner expects to expand the offer to other cities later this year.

To qualify for the gift card, customers must activate a new two year contract with a Verizon smartphone or tablet (with data service) and choose either a qualifying new service or upgrade to your Time Warner Cable account.  You must agree to keep the service active for at least 90 days.

Cell Tower Sneakiness: Rogers Quietly Erects 50-Foot-High Cell Towers in Yards; Too Short to Regulate

This nearly 15 meter monopole cell tower antenna just showed up one day in the backyard of this Kirkland, PQ resident, who is presumably being compensated up to $200 a month as Rogers' newest cell tower landlord.

Rogers Communications has found a solution to difficult zoning laws and cell tower controversy — find a homeowner willing to accept around $200 a month to host a (relatively) short cell tower antenna in their backyard, skirting the usual dragged-out cell tower siting consultations most local communities have enacted to control visual pollution.

A wealthy neighborhood in the community of Kirkland, a city of 20,000 near Montreal, discovered Rogers’ ingenuity for themselves when a just-under-50-foot monopole antenna suddenly appeared in the backyard of a home on Acres Street.

The neighbors are outraged. But Rogers says everything they did erecting the tower with no prior notice was done by the book.

That book, in the form of Industry Canada regulations, says Rogers doesn’t need to endure lengthy zoning hearings or a town-wide consultation process.  Rogers agrees, stating they can erect antennas of less than 15 meters at their pleasure — no consultation required.

Rogers spokesperson Stephanie Jerrold said Industry Canada regulations are clear: “The protocol says that if it’s a tower that measures under 15 meters, no public consultation is needed,” she said.

That may be true, but the loophole did nothing to appease dozens of nearby residents living in homes valued at $400,000 from raising a ruckus with local officials.  A petition has been submitted to city hall demanding Rogers remove the antenna.  Residents expressed concerns about their health and property values with a cell tower in their midst.

Rogers foreshadowed their intent last fall when they mailed letters to homeowners looking for someone to host the new antenna, offering around $200 a month to any takers. Evidently there was one — the resident at 75 Acres St.

City officials are pondering what to do about the new tower. They did not approve a work permit for its placement, which may provide leverage against Rogers, but no one knows for sure.

Thus far, Industry Canada wants to remain more than 15 meters away from the debate.  A spokesman for the agency, Antoine Quellon, told the West Island Gazette:

“The company must consult with the local community as required and address relevant concerns. It must also satisfy Industry Canada’s general and technical requirements, including Health Canada’s Safety Code 6, aeronautical safety, interference protection and environmental requirements. Under rare circumstances where an agreeable solution for a site is not possible, Industry Canada may need to make a determination based on the facts presented.”

[flv width=”400″ height=”380″]http://www.phillipdampier.com/video/CBC Montreal Backyard cell tower in Kirkland worries neighbours 4-11-12.flv[/flv]

CBC in Montreal covered the Kirkland controversy and talked with the neighbors about the new 50 foot pole owned by Rogers Communications.  (2 minutes)

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