BOSTON -- Despite overall economic downturn in telecom sector, international cross-section of fixed wireless industry at preliminary session of Wireless Communications Assn. (WCA) conference here said networks in Latin America and Europe were moving forward, with some changes. Regulators in some cases aren’t immediately seizing licenses if terms aren’t met and govts. are turning more frequently to so-called beauty contests rather than auctions, participants said Sun. Biggest change may be that both regulators and financial backers are expecting realistic business plans with controlled buildout, they said. Among challenges in Europe are that unbundled local loop regulations in some cases can make it easier for competitors to lease network elements from incumbents for DSL, making wireless network buildout less compelling, said Arturas Medeisis, radiocommunications expert with European Radiocommunications Office. “So far, we haven’t seen true success stories yet,” he said of Western European markets.

American Tower issued warning on its expected 2nd quarter net loss per common share, indicating it was likely to hit range of 52-58 cents compared with guidance of 38-45 cents in March. American Tower, which has 14,000 tower sites, also said it planned to take “impairment charge” on its $22 million investment in US Wireless. US Wireless develops technology for Enhanced 911 solutions and American Tower is only preferred stockholder in company. Drop in US Wireless market valuation “appears to be other than temporary,” American Tower said. It also revised revenue outlook in 2nd quarter for Verestar, subsidiary that connects satellite and terrestrial networks. In May, American Tower said it expected 2nd quarter revenue for that unit to hit $68-$73 million range but revised that Thurs. to $56-$58 million. American Tower attributed downward projections to difficulties Verestar had faced in integrating new acquisitions and new hardware problems. Company also cited “a slowing in demand in specific business segments and geographics.” American Tower Chmn. Steve Dodge said he expected Verestar to return to positive cash flow in 3rd quarter. American Tower affirmed revenue projection of $25-$27 million for 2nd quarter.

While wide-ranging wireless privacy legislation may not be necessary or possible to move through Congress this year, panelists at Capitol Hill lunch Tues. cited narrower areas where short-term legislative fixes were needed. Center for Democracy & Technology (CDT) Deputy Dir. James Dempsey stressed need for lawmakers to require law enforcement agencies to meet probable cause standards when collecting data from wireless networks and to broaden consumer privacy safeguards on location-specific information beyond telecom carriers. One particularly thorny issue is govt. access to information that isn’t stored on user’s PC but on outside network, increasingly common configuration with software applications and other data, Dempsey told Congressional Internet Caucus lunch on wireless privacy. Govt. access to data stored with 3rd party network is not now subject to Fourth Amendment protections, which require probable cause before reasonable search is conducted, Dempsey said: “That definitely needs to be addressed.”

Members of House Telecom Subcommittee voiced concern Thurs. that wireless carriers and 911 call centers wouldn’t meet Oct. 1 deadline for deploying Phase 2 of Enhanced 911 location capabilities. Ranking Democrat Markey (Mass.) warned “industry should not seek -- nor should the Commission grant -- waivers to rules merely for business convenience.” He cited what he called “manana” syndrome among carriers on implementing E911. “But when it comes to 3G, they want spectrum today. They stipulate that it’s a national priority.” Markey said he backed industry’s quest for more 3G spectrum, but said he would “like to see the same alacrity and aggressiveness” on public safety offerings linked to E911. Hearing focused on thorny implementation issues that face wireless industry less than 4 months before Phase 2 deadline, including equipment availability and readiness of public safety answering points.

Triton PCS told FCC this week it “likely will require a waiver” of Commission’s Enhanced 911 rules on deployment of alternative solution for Phase 2. AT&T affiliate cited complications stemming from its plans to no longer pursue handset- only approach to implementing Phase 2 for its TDMA network. Triton said it had been informed by manufacturers such as Nokia and Motorola that they won’t produce GPS-equipped TDMA handsets for use in Triton’s network. Triton said its implementation strategy for Phase 2 also was being shaped by its plan to construct GSM overlay network that eventually could replace its TDMA infrastructure. As result, Triton told FCC in updated E911 report that timing of its Phase 2 deployment “may be adversely affected.” But it said “the nature and extent of such a waiver” could be pinpointed only after Triton had assessed potential options available. AT&T Wireless and Nextel already have sought Phase 2 waivers from Commission and Cingular has indicated it may need one, although it hasn’t asked for additional compliance time. Triton said it planned to implement GSM overlay strategy similar to what AT&T Wireless is pursuing as part of alliance with NTT DoCoMo. As result, it said it was crafting “hybrid” solution for Phase 2 that would cover its existing TDMA network and planned GSM infrastructure. “Triton is proceeding as rapidly as possible with the evaluation and selection of alternative Phase 2 approaches,” company said.

First proposals on how to reorganize FCC under project led by Mary Beth Richards, who is special counsel to FCC Chmn. Powell, are due out this summer, she said Mon. Proposal is part of first phase of comprehensive FCC reform project spearheaded by Powell, and recommendations will focus on short-term changes suggested by Commission staff, industry, consumer groups and others, she told American Mobile Telecommunications Assn. (AMTA). Second phase of project is “much more comprehensive,” probably spanning 1-3 years and “completely changing the FCC along functional lines” rather than traditional divisions between buckets of technologies, Richards said. “So there is a possibility that at the end of it there will no longer be a Wireless Bureau, there will not be a Common Carrier, but there would be another bureau that deals with particular functions,” she said at AMTA annual leadership conference in Alexandria, Va. She cited spectrum management as one possibility and said it was too early to forecast any changes.

Nextel, Qwest Wireless, Verizon Wireless and VoiceStream asked FCC Wireless Bureau last week to reconsider recent conclusion that mobile carriers were responsible for certain costs of Enhanced 911 wireline network. Bureau clarified last month where line was to be drawn for dividing costs of E911 Phase 1 network and database components (CD May 9 p6). In letter to King County, Wash., E911 program, Bureau Chief Thomas Sugrue said proper demarcation point for funding between carriers and public safety answering points (PSAPs) was input to 911 selective routers that ILECs maintain. Those routers receive 911 calls from LEC central offices and send them to specific PSAP that serves area of emergency caller. Four wireless carriers that filed petition said appropriate demarcation point for ascertaining PSAP costs was mobile switching center of wireless carrier. “At a minimum, the bureau is obliged to reconsider its conclusions because it did not consider and address highly relevant facts and arguments submitted by commenters in response to the bureau’s solicitation of public input on the King County request,” carriers said. They are arguing that bureau decision: (1) Was beyond scope of its delegated authority. (2) Wasn’t supported in FCC rules and record. (3) Constituted rulemaking for which “the full Commission must provide notice and comment.” Carriers contend numerous industry entities had sought demarcation point at mobile switching center. “Indeed, it appears from the letter that the bureau chose to ignore altogether the many filings opposed to the King County request,” carriers said. Among points raised in comments that carriers said bureau ignored were regulatory requirements that assign financial responsibility to PSAPs for transporting and processing data once carrier has made E911 Phase 1 data available at mobile switching center. In other areas, carriers said bureau could not wipe out meaning of FCC rules through interpretations. Bureau made “new policy choice” of who should bear costs of E911 wireline network, departing from previous decisions on how joint costs should be shared between carriers and PSAPs, petition said.

House Telecom Subcommittee plans hearing June 14 on wireless deployment of enhanced 911 (E-911), congressional staffer said. Witness list wasn’t available, but session will be at 10 a.m., Rm. 2322, Rayburn Bldg.

ATLANTA -- Wireless industry could find itself in cross hairs of regulators that want to set framework on service levels, Verizon Wireless CEO Dennis Strigl warned at Supercomm 2001 here. “My greatest fear… is creeping regulation. We have to keep the service quality up so regulators are not tempted to intervene,” he said in keynote Mon. Part of wireless carrier’s problem is PR, he said. “Day after day, the headlines cover major disappointments. But how can they say we failed to keep our promises on new technologies when the rollout of 3G is still on schedule?” All of wireless industry is guilty of “overhyping and overpromising,” especially in timing of wireless data, Strigl said: “We have ignored the basics, something we can’t afford to ignore. The industry has overcomplicated the business for the customer and needs to simplify applications from their perspective.” Carriers want to leapfrog to wireless data but don’t want to deal with basics of business to deliver useful wireless applications, he said. Fundamentals have been neglected, he said, with inability to get service because network is congested, areas with no service at all, 20-min. waits for service, switches down, confusion over calling plans, confusion where it is legal or illegal to use cellphone while driving, bad roaming experiences due to inadequate SS-7 networks.

FCC asked for comments in Further Notice of Proposed Rulemaking on issue of nonservice initialized wireless phones used to make 911 calls. FCC seeks feedback on whether such phones should have capability so public safety answering points (PSAPs) could call back emergency caller, even though those phones didn’t have dialable number. In some cases, such phones were used to provide service by carrier but have been reissued under donor programs such as domestic violence protection. In other cases, handsets are newly manufactured 911-only phones that can’t receive incoming calls. Public safety entities had asked FCC to take another look at callback issue because noninitialized phones didn’t have dialable callback number for emergency response or in some cases didn’t provide accurate location information. In further notice, Commission seeks comments on possible technical solutions to callback issue. It tentatively concluded that all carrier-donated handsets should be labeled and initialized on limited basis so PSAP could return emergency call. It also proposed that said all newly manufactured 911-only handsets be labeled and provide for PSAP return calls. Wireless carriers have argued that no viable technical solution has been identified for allowing PSAPs to return calls, and developing one could divert resources from implementing Enhanced 911 mandates. But public safety entities have disagreed, saying solution exists or could easily be devised. Comments are due July 9, replies Aug. 8. Notice also seeks comments on how often such calls occur and whether variation could be used of temporary local directory numbers, which are used now for roaming calls.