Getting support of Rep. Rohrabacher (R-Cal.) was important for chances of bill that would return satellite export controls to Commerce Dept. to clear Congress, officials said. Jim Lewis, dir., Center for Strategic and International Studies told us “getting Rohrabacher on is important for helping its chances” because of bipartisan co-sponsors. “I think that I have managed through my tenacity to pull Berman and the aerospace industry over to a policy that’s more responsible than the ones they were backing in the past,” Rohrabacher told us. Bill introduced May 3 by Rep. Berman (D-Cal.) and Rohrabacher would return satellite export controls from State Dept. to Commerce Dept., reversing action Congress approved in 1999 (CD May 7 p3), though State Dept. and Defense Dept. would have right to veto any license approval by Commerce for national security reasons.
Exports to China
GSM subscribership topped 500 million mark, accounting for more than 70% of digital wireless phones worldwide, GSM Assn. and research group EMC World Cellular Database said Fri. Groups said nearly 40% of GSM customers are outside Europe. Largest population of GSM users is in China, which has 82.4 million customers. “China alone has almost as many GSM customers as any other digital standard,” groups said. In N. America, groups reported 10 million GSM phones. Usage is expected to surge in U.S. as operators such as AT&T Wireless implement decisions to overlay digital TDMA networks with GSM, report said. Because countries such as Brazil, Argentina, Peru and Mexico have decided to adopt GSM, groups said they expect to see “tenfold” increase in GSM subscribers in Latin America overall in next 12-18 months.
Motorola signed 5 contracts worth $146 million with China Mobile Communications to expand GSM networks in 5 provinces. Carrier expects to reach total of 11 million subscribers, with networks operational by year-end. Partnering with Cisco Systems, Motorola this month also will complete expansion of Beijing Branch GPRS network. New contracts are in addition to $213 million GSM supply contract announced April 25 for expansion of China Mobile GSM900/1800 dual band network in Hunan Province.
Intelsat and Eutelsat asked U.S. govt. to allow launch of satellites aboard Chinese Long March rockets early next year. However, both companies are preparing alternative plans in expectation that U.S. will deny permission. Both satellites were built by European companies but have American-supplied components. Meanwhile, industry sources and Bush Administration officials are offering different takes on issue. Satellite industry plans to monitor situation closely because of concerns about satellite component market because of tighter export controls. This marks first time U.S. has faced issue of dealing with U.S. components aboard non-U.S. satellite since export licensing was moved to State Dept. from Commerce Dept. 2 years ago.
Spectrum allocation, regulations on space imaging and expediting process for satellite export controls are 3 main issues on tap for Aerospace Industries Assn. (AIA), Bruce Mahome, AIA dir.-space policy, said Mon. after news briefing in Washington on declining R&D federal budget for aerospace research. AIA has been working “to reassure [FCC International Bureau] that it should continue to back the industry,” said David Logsdon, AIA mgr.-space operations, and “put money into [R&D] efforts.” “Some people in the FCC are nervous the satellite industry can deliver workable systems after problems with Iridium and Globalstar” and satellite phones, he said.
Nortel won contracts valued at $105 million to expand GSM networks for China Mobile in Hebei, Anhui and Guizhou provinces. Companies said network expansion agreements would help broaden wireless Internet in China. China Mobile Hebei contract covers expansion of province’s dual-band GSM 900 MHz/1800 MHz network, increasing subscriber capacity by one million to total of 5 million. In Anhui and Guizhou provinces, Nortel will increase network capacity for both by nearly 500,000 subscribers.
Motorola won $213 million contract from China Mobile Communications’ Hunan wireless operations, which is expanding its 900 MHz/1800 MHz dual band GSM network in Hunan Province. First part of contract, valued at $154 million, is expected to be completed by year-end. Second part, at $59 million, is scheduled to be finished in first half of 2002, Motorola said. Companies said network expansion would increase capacity by 2.8 million subscribers.
Export controls for satellite companies still are in flux while Commerce and State Depts. attempt to settle on uniform policy for licensing and controlling sensitive technology of satellite components, inspectors gen. (IG) said in March reports. Typical of problems is “political jostling” at State and Commerce over exports, satellite official said. They have agreed on 13 of 16 issues involving satellite components, but have been unable to reach consensus on others, Satellite Industry Assn. (SIA) Pres. Clay Mowry told us. Major regulation of satellite components is in “political limbo” as new officials take control of key govt. positions that provide oversight to industry.
India said it successfully launched satellite on home-built rocket Wed. Country said that with launch it joined list of countries capable of flying large commercial satellites -- U.S., Russia, Japan, China and European Space Agency. India had used Arianespace to fly its larger birds in past.
Ericsson won contracts in China for GSM and other networks with combined value of $400 million. It said contracts included IP backbone network in Beijing and provinces of Hebei, Shandong, Yunnan. It said it would provide Shandong Telecom, provincial branch of China Telecom, with IP backbone routers for intercity broadband IP networks. Under separate China Telecom contract, Ericsson will supply IP backbone routers for all nodes of carrier’s 2nd data communications expansion. It’s furnishing Jiangsu Mobile with packetized backbone network. Ericsson said it also would provide gear, including radio and switching equipment and prepaid systems, for Shandong Mobile to expand its GSM wireless network. It will supply switching and radio equipment, including General Packet Radio Service systems, to Hebei Mobile, which is upgrading and expanding its network. All contract work is being done in conjunction with partners in China, company said. Ericsson CEO Kurt Hellstrom announced agreements in visit to Beijing this week.