AT & T; Corp.’s recently announced restructuring will include spinning off its wireless operations into an independent company. Does that mean the company’s schedule to roll out fixed wireless broadband service to Los Angeles is still in play?
“Absolutely,” said company spokesman Ritch Blasi. “Later this year or early next year, we’ll be pushing into the L.A. market. We have to change the frequencies we are using in other markets like Dallas-Ft. Worth, but as soon as we’ve re-tuned the technology from PCS (personal communications service) to WCS (wireless communication service) spectrum, we’ll be ready. And we’re pretty much there.”
A fixed wireless network is a way for AT & T; to bypass the local telephone companies’ stranglehold on bandwidth to the home, the oft-lamented “last mile” to the consumer. AT & T; has been developing fixed wireless technology and accumulating licenses since 1996, when it launched “Project Angel.” At the same time, the company embarked on a cable system acquisition strategy. Even though it is the nation’s largest cable provider after its purchases of Telecommunications Inc. and MediaOne there are still many gaps in AT & T;’s network.
And one big gap is in Los Angeles. AT & T; Broadband’s cable footprint reaches only about 500,000 of the region’s households. The fixed wireless network will let the company reach the rest of us.
“We turn on the service where we know we can go in and immediately capture a big market share because there is no alternative high-speed access from local telephone or cable companies,” explained Blasi.
AT & T;’s technology now enables subscribers to receive content at 512 kilobits per second (almost 10 times faster than a 56K modem can deliver) and subscribers can send out content at 128 kbps. The transmissions are sent over a chunk of spectrum allocated by the U.S. Federal Communications Commission for WCS.
In 2001, the capacity will be increased to 1 megabit per second downstream to each user, and the company hopes to start its L.A. service at this higher rate. To keep pace with other access technologies, Blasi said, AT & T; Wireless plans to double the speed of its service every year for the next three or four years.
Lower costs, faster rollout
Wireless networks are somewhat cheaper to build than their wired counterparts, about $750 per household compared to $800 to $1,200, depending on system architecture, population density and other factors. While there are no expensive rights-of-way to purchase, licenses for over-the-air spectrum can be expensive. One incentive for service providers to build wireless networks is that most of the cost is not incurred until a subscriber signs up for service, while wired networks must be built out pretty much in their entirety before any programs, applications, or data can be delivered to the first customer.
Fixed wireless will let AT & T; offer residential customers a bouquet of services that will challenge those offered by local telephone companies. In the Dallas-Ft. Worth area, where the company first introduced the service, customers get a single voice line with caller ID, call waiting, and three-way calling for $25.95 per month. Up to three additional lines can be added for $7 each per month. High-speed Internet access, which includes the ATTWorldnet Internet Service Provider service, costs $34.95 per month. That’s about $5 to $15 a month cheaper than DSL service.
Consumer equipment consists of a small antenna on the side of the residence and an “angel box” inside that provides the brains of the system. Once the box is hooked up, users can plug their computer or Internet appliance into any phone jack and be connected to the Net.
AT & T; isn’t the only long distance provider climbing on this new bandwidth bandwagon. Sprint has been offering fixed wireless high-speed Internet access service in San Jose and Phoenix for some time, and turned on its system in the Oakland area on Nov. 2. San Francisco is set to come on line in early 2001 and there are plans for additional expansion to Tucson and Colorado Springs.
The Sprint system provides 1.5 Mbps, a little faster than the AT & T; offering, and costs $39.95 per month, with ISP service provided by EarthLink Network Inc. In addition, Sprint customers have to spend $299 for a small dish (reduced to $99 with a two-year contract.)
A recent study by New York-based eMarketer estimates that the number of fixed wireless subscribers will grow from 230,000 this year to 3.86 million in 2003, generating revenues of $3.35 billion, 20 percent of that from the residential market. The report asserts that the industry is being motivated by the relatively inexpensive and quick deployment of the system, while consumers are drawn by simple access and attractive pricing models.
Around Town
The Southern California Software Industry Awards is being held Nov. 8, honoring local code creators who have helped make the region a center for software innovation and entrepreneurial activity. Categories include: CEO of the Year, Software Entrepreneur of the Year, Software Developer of the Year, Multimedia Company of the Year, and Internet Company of the Year.
The event will be held from 6 to 9 p.m. at the Regal Biltmore Hotel in downtown. For more information: [email protected].
Also on Nov. 8, the Cable & Telecommunications Association for Marketing is holding a panel discussion about two-way cable system technology. Moderator will be Larry Gerbrandt, senior vice president and senior analyst at Paul Kagan and Associates. Speakers include Sandy Perron, regional director of sales and marketing for Adelphia Communications; Robin Berger, technology editor at Electronic Media Magazine; David Nathanson, director of broadband strategy for Fox Cable Networks; and Thomas Romero, co-founder and vice president of business development at STC Networks. The meeting will be held at the Manhattan Beach Marriott, 1400 Park View Ave., Manhattan Beach, from 8:30 to 11:00 a.m. For more information: [email protected].
Contributing columnist Joan Van Tassel has covered technology since 1990. Her book, “Digital TV Over Broadband: Harvesting Bandwidth,” will be published in December by Focal Press. She can be reached at [email protected].
