USDTV -- the subscription-based over-the-air terrestrial DTV service -- will ship a 2nd-generation set- top box in first half 2006, along with optional MPEG-4-to- MPEG-2 transcoders and 250 GB hard drives as it sets a goal of landing 2 million subscribers within 5 years, CEO Steve Lindsley told the UBS Global Media Conference in N.Y. Thurs.

Mobile Satellite Ventures (MSV) said a “proof of concept” demonstration of its hybrid satellite/terrestrial wireless network should quell doubts about the technical feasibility of a hybrid satellite/terrestrial system using small handsets. Industry analysts said the demo should embolden potential investors and terrestrial partners. Tests centered around the CDMA air interface, but MSV officials said Wed. demos based on other technology platforms, including WiMAx, are planned.

The PCS industry spent more than $750 million to relocate about 3,600 microwave links from the 1850-1990 MHz band, PCIA said Wed. The association’s Microwave Clearinghouse cost-sharing activities for microwave relocation officially sunset April 5. The FCC in 1996 designated PCIA, along with Industrial Telecom Assn. (ITA), to administer the Commission’s cost-sharing plan for microwave relocation. The plan aimed to assure that when more than one PCS company benefited from relocating a particular microwave user, PCS companies shared those costs. “For the carriers who initially cleared the spectrum at their own expense, the cost-sharing process identified more than $400 million of reimbursement opportunities to be paid by subsequent benefiting licensees in the PCS band,” said PCIA Microwave Clearinghouse Mgr.-Operations Chris Holt. He said PCIA’s clearinghouse procedures “expedited deployment of more than 150,000 PCS base stations.” PCIA Pres. Mike Fitch called the association’s Microwave Clearinghouse “a world- class example of a non-profit, non-governmental entity helping execute equitable and efficient transitions for licensees occupying valuable spectrum.” PCIA said 6 other countries have studied its Microwave Clearinghouse as a possible model for spectrum relocation solutions.

Nextel said Thurs. it expects to spend $900 million in 2005 as it begins to implement the 800 MHz rebanding plan, approved by the FCC last year, which will eat up much of the company’s projected $2 billion free cash flow. About $600 million will be spent on new capacity sites, filters and working with public safety radio systems and $300 million to relocate broadcast auxiliary users and microwave incumbents from 1.9 GHz to 2.1 GHz, Nextel officials said on a call with analysts discussing 4th- quarter results.

High tech companies, anxious to open up more spectrum for Wi-Fi and other unlicensed uses, strongly supported an FCC proposal to allow the use of “white spaces” between TV channels, in comments on a proposed rulemaking. In general, high tech companies view the lower-frequency spectrum as especially valuable for unlicensed use because of its superior propagation characteristics. As expected, broadcasters slammed the plan. Cable operators cited a potential threat to their operations.

The Wireless Communications Assn. called on the FCC to rethink a key part of its order reallocating 2.5 GHz spectrum to spur growth of wireless broadband. WCA said for the order to accomplish its goals FCC must remove the Big LEO MSS satellite downlink allocation from the 2496- 2500 MHz band. Sprint and Nextel also filed petitions for reconsideration citing similar concerns. Meanwhile, Globalstar said it deserves a hearing, under Section 316 of the Communications Act, based on the extent of the impact to Globalstar’s system from all the sharing it will do in the S-band (2496-2500 MHz) and the L-band (1618.25- 1621.35 MHz).

The FCC Policy Branch granted several applications filed by SES Americom relating to its AMC 16. The company asked to launch a replacement Ka-band satellite (AMC 16) to 85 degrees W. The Commission granted the company permission to launch the craft and reduced its bandwidth by 600 MHz. The Commission also said Americom could move its AMC 9 from the 85 degrees W slot to 83 degrees W and operate from there.

A rebanding plan to mitigate public safety interference at 800 MHz would still be a “fair value proposition” if blocks at 700 and 900 MHz weren’t part of a spectrum exchange, said Nextel Senior Vp-Chief Regulatory Officer Bob Foosaner at a media and analyst briefing Sun. The FCC recently began considering a draft staff proposal on how to correct public safety interference at 800 MHz (CD March 11 p1). Under this draft, Nextel would pay for incumbent retuning at 800 MHz and the company would pay the difference between that and the value of 10 MHz at 1.9 GHz. But spectrum at 700 and 900 MHz that was part of a swap under the “consensus plan” backed by Nextel, public safety organizations and others wouldn’t be included in a proposed exchange. Asked whether Nextel would find favor with a plan that didn’t cover 700 and 900 MHz as part of a swap, Foosaner said: “We will have to understand what is acceptable to Nextel as we fully understand what the thought processes are at the Commission. We have always indicated we are willing to talk about various parts of the proposal.” Foosaner said any plan must eliminate interference and give Nextel 10 MHz at 1.9 GHz. While he said opponents to the consensus plan have successfully focused attention on valuing this spectrum at 1.9 GHz, Foosaner reiterated Nextel’s concerns that valuations floated by Cingular, Verizon Wireless and others were too high. Nextel has said it would contribute $5.3 billion in retuning and other expenses under the consensus plan, while the spectrum at 1.9 GHz is worth $3.5 billion. Verizon Wireless has charged Nextel would receive a spectrum “windfall” under the plan, with the 10 MHz at 1.9 GHz worth $5.3 billion. Foosaner said Verizon Wireless figures didn’t take into account the extent to which this 10 MHz at 1.9 GHz is occupied by Broadcast Auxiliary Service licensees, or the retuning costs that reduce the market value of this spectrum. “Did they look at the spectrum?” he asked: “The spectrum is occupied.” Also at the briefing, Nextel CEO Tim Donahue said the company plans to spend $600 million this year on network expansion. He also was bullish on the continued growth prospects for Nextel’s push-to-talk walkie-talkie type service, despite similar offerings that rivals are beginning to market. “Our ability to sell push-to-talk has never been stronger,” he said. Push-to-talk products such as those offered by Verizon Wireless appear to have simply refocused attention on Nextel’s plans, Donahue said, calling Verizon’s walkie-talkie version “not much of a product.” The proposed merger of AT&T Wireless and Cingular has a likely upside for Nextel, Donahue said. “We think it’s going to give some opportunity to us, because during times of mergers you typically have distraction; so it’s an opportunity for us to go and talk to AT&T and Cingular customers,” he said. -- MG

GENEVA -- Wireless operators at the ITU Telecom World 2003 show here said fast-growing Wi-Fi systems were complementary to coming 3G offerings, but several were skeptical of the business model for doing 802.11. Qualcomm Chmn.-CEO Irwin Jacobs said his company had tested the possibility of putting 802.11 capabilities on a CDMA chip a year and a half ago. “We haven’t put it on a chip yet because we are looking for what is the right business case, is there a demand,” Jacobs said Wed. But he said he expected the next versions of advanced CDMA 1x chip sets that also had GSM and General Packet Radio Service would carry 802.11 capabilities as well.

The Telecom Industry Assn. (TIA), having been stymied for a year by the White House, Congress and a slow-moving FCC, said Wed. it had a new message for President Bush that it believed this time he would hear: “Jobs, jobs, jobs.” In a meeting with reporters, TIA officials said that after a year with little deregulatory action, continued decline in telecom spending and more job losses, they would renew their push of their message supporting regulatory reform that they said would spark the ailing telecom sector. They want the White House to respond with a mention of broadband in the State of the Union address.