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- From: bc338569@LANCE.ColoState.Edu (Brian Catlin)
- Subject: Wireless Cable FAQ
- Summary: This FAQ answers questions on how wireless cable (MMDS) works, what
- frequencies are used, what you need to have to apply for a license,
- and which companies you may want to be careful of.
- Sender: news@yuma.ACNS.ColoState.EDU (News Account)
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- Date: Thu, 03 Dec 1992 19:24:40 GMT
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- Archive-name: wireless-cable
- Last-modified: Thu, December 3, 1992
-
- ***** Wireless Cable - Frequently Asked Questions (FAQ) *****
-
- Compiled by Brian J. Catlin (bc338569@longs.LANCE.ColoState.Edu)
-
- NOTE: Most of this information is taken from FCC Public Notices along with
- information sent to me by both the FCC and the Wireless Cable Association
- (WCA). Items marked with three plus signs (+++) have been added or changed
- since the last posting.
-
- Contents:
- Abbreviations used
- What is wireless cable?
- How does it work?
- What are super high frequencies?
- What frequencies are used?
- +++ Is wireless cable's channel capacity comparable to traditional cable?
- What equipment is in the subscriber's home?
- What channels can be sent?
- What about copyright issues?
- What is the history of MMDS?
- How does MMDS work commercially?
- How do I apply for the frequencies?
- How are licensees selected?
- What is the range of wireless cable?
- What are the costs of a new station?
- Is wireless cable equipment reliable?
- What about security?
- How are wireless cable systems regulated?
- What are the benefits of wireless cable to the customer?
- Is there an industry association?
- I saw one of those 'infomercials' about wireless cable. Are these
- companies legit?
- Who do I contact for more information?
- ---------------
-
- ABBREVIATIONS USED:
-
- MMDS - Multichannel Multipoint Distribution Service. Two sets of four
- channels each. Also, type of service known as "Wireless Cable".
- MDS - Multipoint Distribution Service. Two channels that are similar to
- MMDS. May be used in a wireless cable system.
- ITFS - Instructional Television Fixed Service. Channels that must have a
- minimum of 5 hours per week of educational programming. May be
- leased for wireless cable usage.
- OFS - Private Operational-Fixed Microwave Service. Three channels that
- may be used for a wireless cable system.
-
- Q. WHAT IS WIRELESS CABLE?
- A. Wireless cable is a name given to a service that is called Multichannel
- Multipoint Distribution Service (or MMDS). It is a new type of cable
- television system that offers its subscribers a mix of broadcast and
- satellite cable channels. Wireless cable uses Super High Frequency
- ("SHF") channels to transmit satellite cable programming over-the-air
- instead of through overhead or underground wires.
-
- Q. HOW DOES IT WORK?
- A. Scrambled satellite cable programming is received at a central location
- where it is processed and fed into special transmitters. The SHF
- transmitters distribute the programming throughout the coverage area,
- usually over a 25-mile radius. The signals are received by special
- antennas installed on subscribers' roofs, combined with the existing VHF
- and UHF channels, and distributed within the home or building through
- coaxial cable into a channel program selector located near the
- television set...just like traditional cable television.
-
- Q. WHAT ARE SUPER HIGH FREQUENCIES?
- A. Years ago, there was only one television broadcast band authorized by
- the FCC called VHF or Very High Frequency. The UHF (Ultra High
- Frequency) band was authorized in the 1950's and recently the FCC
- authorized commercial usage for up to 33 television channels in the SHF
- or Super High Frequency band. Individual SHF frequencies are known as
- MDS, MMDS, ITFS and OFS. Wireless cable uses as many of these
- frequencies as are available in a market to bring subscribers the best
- in cable television programming, including blockbuster movies, sports,
- music videos, news and information services.
-
- Q. WHAT FREQUENCIES ARE USED?
- A. Frequency num. of type of channel
- Range channels service groups
- ------------------------- -------- ------- -----------------
- 2,150 - 2,162 MHz 2 MDS 1,2,2(A)
- 2,500 - 2,596 MHz 16 ITFS ABC&D
- 2,596 - 2,644 MHz 8 MMDS E&F
- 2,644 - 2,686 MHz 4 ITFS G
- " - " 3 OFS H
- 2,686 - 2,689.875 MHz 31* MMDS Response Channels
-
- * - Each channel's bandwidth is 125 KHz
-
- Q. IS WIRELESS CABLE'S CHANNEL CAPACITY COMPARABLE TO TRADITIONAL CABLE?
- A. Yes! The average channel capacity of U.S. cable systems is just over 30
- channels. When fully implemented, wireless cable operations may have as
- +++ many as 33 channels of broadcast and cable programming. Over 100
- +++ channels could be available if digital bandwidth compression is used.
- This, of course, depends on which channels are already used in your
- area. Furthermore, 20 of the channels are borrowed from ITFS services
- and are earmarked for educational use. This means there is a
- requirement to program 5 hours per week per channel of educational
- material.
-
- Q. WHAT EQUIPMENT IS IN THE SUBSCRIBER'S HOME?
- A. Each household subscribing to the service has a small antenna on its
- roof (about the size of an open newspaper) and a downconverter inside.
- The downconverter usually includes an addressable decoder and a VHF/UHF
- tuner built in. This gives it the ability to tune in broadcast channels
- without having to use up valuable MMDS channels. It also allows
- pay-per-view services and simplifies channel blocking and premium
- channel activation/deactivation.
-
- Q. WHAT CHANNELS CAN BE SENT?
- A. Wireless cable systems can carry any of the typical cable channels. In
- the past, some channels refused to let wireless cable systems carry
- their signals. However, the cable re-regulation bill (S.12) made
- channels that are available to cable companies also available to
- wireless cable. It can also send the 'SuperGuide' data along with
- similar data services.
-
- Q. WHAT ABOUT COPYRIGHT ISSUES?
- A. Currently, wireless cable systems have assumed that they may use a
- compulsory license to pay for copyright issues (similar to what cable
- companies do today). A compulsory license enables systems to
- re-transmit broadcast signals for a pre-established fee to compensate
- producers of TV programs. The copyright office recently announced that
- wireless cable is NOT a cable system, therefore, these systems may not
- use compulsory licenses. They have decided, though, that wireless cable
- systems may continue to use the compulsory license for two years (I will
- try to get an exact date). I have heard of some legislation that may
- allow small cable companies and wireless cable companies to use a
- compulsory license for up to 11 years. I don't think that anything has
- happened with this bill yet, though. Hopefully, there will be more
- legislation on this point.
-
- Q. WHAT IS THE HISTORY OF MMDS?
- A. It is a fairly new service that developed from MDS (multi-point
- distribution service) which could only send one or two channels.
- Originally, the FCC thought MDS would be used primarily to send business
- data. However, since MDS's creation in the early 70's, the service has
- become increasingly popular in sending entertainment programming.
- Because the FCC does not regulate the content of the transmission,
- alternative uses would not be prohibited.
-
- Q. HOW DOES MMDS WORK COMMERCIALLY?
- A. A MMDS licensee, which is similar to a broadcast station owner, leases
- transmission time to programmers on a first-come, first-served basis.
- The programmers, in turn, are responsible for designing and selling
- their programs to the subscriber.
- A MMDS applicant can choose to operate as a common carrier. In the
- telecommunications industry, a common carrier also may provide services
- such as audio only transmissions, telephone, or data.
- If a MMDS licensee is currently operating as a common carrier, the FCC
- requires that the licensee and the programmer not be related or
- affiliated. A common carrier offers transmission service for hire and
- cannot control program material or serve primarily its other business
- interests.
- A MMDS applicant can alternatively choose to operate as a non-common
- carrier. This scenario in effect would constitute a non-common carrier
- wireless cable system.
-
- Q. HOW DO I APPLY FOR THE FREQUENCIES?
- A. First, you should contact the FCC and get the proper applications. This
- includes the following forms:
- FCC form 430 - Licensee qualification report
- FCC form 494 - Application for a new or modified microwave radio
- station license under Part 21
- FCC form 701 - Application for additional time to construct a radio
- station (Just in case something happens!)
- FCC form 494A - Certification of completion of construction
- THE FCC HAS CURRENTLY PLACED A FREEZE ON ALL NEW APPLICATIONS UNTIL THEY
- CAN PROCESS THE BACKLOG AND SETUP NEW PROCEDURES TO DEAL WITH ALL OF THE
- NEW APPLICATIONS. They say they were getting about 1,000 applications a
- month!
-
- Q. HOW ARE LICENSEES SELECTED?
- A. When more than one application using the same E or F group of
- frequencies is accepted for filing proposing a multichannel MDS station
- in the same service area, the Commission will use a lottery (random
- selection) to award a conditional license. Minority preference and/or
- diversity preference may be claimed by the applicant. The factors used
- to determine if an applicant qualifies for either type of preference are
- explained in Section V of FCC Form 346. When more than one application
- using channel 1, 2 or 2A in the same service area is filed, the
- Commission will use a comparative hearing to award a conditional license
- (construction authorization).
- Charles Gratch, who heads applications processing in FCC's Domestic
- Facilities Div., said he often tells callers that they don't need a
- license to enter the wireless cable field; he advises them to find
- licensees who can't put together a system and try to collect enough
- channels to start a business, eliminating long and speculative lottery
- processes. Even with new rules approved by the FCC (TVD Oct 15 p5),
- challenges to develop wireless cable, particularly if there's an
- existing cable system, will be formidable, Schmidt said. Wireless cable
- services also could face increasing competition from satellites, he
- said.
-
- Q. WHAT IS THE RANGE OF WIRELESS CABLE?
- A. Wireless cable systems usually get a range of 25-30 miles (this depends
- on the terrain, as the transmitting and receiving antennas must be line-
- of-site). This may make it feasible in rural areas.
-
- Q. WHAT ARE THE COSTS OF A NEW STATION?
- A. According to a couple of books and magazine articles that I have read,
- the cost to build a wireless cable station is much less than that of a
- regular cable system. This is because cables don't have to be strung
- all over town. In comparison to the cost of cable, a 10-watt
- transmitter only costs about $17,000. When combined with the antenna
- structure and monitoring, switching, and originating equipment, it costs
- about $150,000. (These are 1988 figures and they do not consider the
- costs for antennas and downconverters). Because of the low initial
- investment costs, it is possible for wireless cable systems to charge
- less than their regular cable counter-parts.
- According to one article in Forbes Magazine, "Since March of last year,
- Charles Mauszycki's tiny Family Entertainment Network (1989 revenues,
- $564,000) has signed up 1,200 of Sioux Falls' 8,000 outlying homes for
- its wireless cable system. Cost:$17.95 a month for basic cable, plus
- $9.95 a month for Showtime. Mauszycki says that the system, less than
- one year old, already has positive cash flow." This particular system
- was set up in a rural farming community that did not already have cable
- service. Mr. Mauszycki spent about $800,000 to build his system. This
- is less than $700 per subscriber. The article also mentions that if
- penetration reached 40%, then the incremental cost of adding the
- subscribers would bring the cost of the system down to just under $500
- per subscriber. To put these figures in perspective, it costs regular
- cable systems an average of $2,300 per subscriber. (Forbes Magazine,
- February 19, 1990. "The wireless wonder" by Fleming Meeks)
- According to the Wireless Cable Association, a complete headend should
- cost no more than $1.7 million. Usually, you can lower this cost
- considerably.
-
- Q. IS WIRELESS CABLE EQUIPMENT RELIABLE?
- A. Several excellent manufacturers produce antennas and downconverters for
- signal reception and decoder boxes that sit on the customer's television
- which are connected by coaxial cable to the roof antenna.
- Because the signal is broadcast over the air, it is more reliable than
- conventional cable and the quality is better than or equal to ordinary
- cable. Extreme weather conditions do not affect wireless cable's
- transmitters, so their customers will never experience the outages that
- are so common in conventional cable.
-
- Q. WHAT ABOUT SECURITY?
- A. Absolute signal security is provided by encoding each wireless cable
- channel and equipping the converter with a decoding device that responds
- to a pilot signal carrying a data stream with authorization
- instructions. Thus, the system is totally addressable. No converter
- box will have any utility unless it is authorized for service by the
- central computer. All channels, both Basic and Premium, are hard
- scrambled. Because the wireless cable system is addressable, it also
- can accommodate pay-per-view service.
-
- Q. HOW ARE WIRELESS CABLE SYSTEMS REGULATED?
- A. The FCC has specifically preempted local regulation of wireless cable
- frequencies, asserting that it is interstate commerce. There is no
- basis for local regulation of the wireless signal. Unlike cable, no
- public rights of way are used, and all transmission and reception
- equipment is on private property. Furthermore, the antennas are so
- similar to regular television antennas that there can be no basis for
- zoning restriction.
-
- Q. WHAT ARE THE BENEFITS OF WIRELESS CABLE TO THE CUSTOMER?
- A. Availability: Wireless Cable is available to subscribers NOW, whereas
- traditional cable can't or won't be for years to come.
- Reliability & Quality: Wireless Cable is not subject to traditional
- cable's outages or signal degradation. Picture quality is as good or
- better than coaxial cable.
- Affordability: Wireless Cable offers affordable programming packages
- and is priced below or competitively with traditional cable.
- IN SHORT, WIRELESS CABLE IS THE NEXT GENERATION OF CABLE TELEVISION
- PROVIDING THE BEST IN SATELLITE CABLE PROGRAMMING, AVAILABLE NOW, AND AT
- LOWER COST.
-
- Q. IS THERE AN INDUSTRY ASSOCIATION?
- A. Wireless cable operators, license holders, and equipment/service
- suppliers have formed the Wireless Cable Association. Among its
- activities the WCA has established a set of industry standards, both
- business and technical. The WCA has also made the industry's concerns
- known on Capitol Hill and at Federal agencies such as the FCC, NTIA,
- OTA and DOJ. Current legislative efforts are focused on securing right
- of access to programming services. The WCA has also opened channels of
- communication with organizations such as the National League of Cities,
- NATOA, MPAA and the Association of State Attorneys General.
-
- Q. I SAW ONE OF THOSE 'INFOMERCIALS' ABOUT WIRELESS CABLE. ARE THESE
- COMPANIES LEGIT?
- A. While some of these companies may be legit, there are some things that
- they don't disclose. Because of this, two companies have had temporary
- restraining orders placed against them. A judge has placed some of the
- following restrictions on them.
- 1. They may no longer state that applicants are "virtually guaranteed"
- of winning a license in the FCC lottery or that most wireless cable
- licenses are "highly valuable."
- 2. "There may be substantial delays in the awarding of any MMDS
- [Multichannel Multipoint Distribution System] license due to the
- length of time the FCC takes to process MMDS applications and award
- MMDS licenses."
- 3. That financing for wireless cable systems is hard to get, "given the
- relatively new nature of this field of technology and that such
- financing may require additional funds of the customer's own money
- as a condition" to obtaining system.
- 4. Provide a new "Risk Disclosure" statement that applicants must sign
- before sale is completed. This statement informs applicants, among
- other items, that any representations of value of systems are
- opinions and not actual values, that the winner of a MMDS lottery
- wins only 4 channels and that there may be competition with
- satellite, VCR, and other media.
- Temporary Restraining Orders have been placed on, or have been filed
- against: 1) Applied Telemedia Engineering and Management (A-TEAM) and
- 2) Applied Cable Technologies (ACT). If you deal with any type of
- application preparation firm, be very careful and read EVERYTHING.
- Other companies that MAY be questionable include Communications
- Engineering Management Services (CEMS), Decaxo Capital, Techno Source,
- and Western Wireless. These companies have management that were
- involved in a company selling cellular licenses. This company was
- forced out of business by the FCC for misleading customers. Other
- questionable companies include MMDS Technologies, Metro Communications
- Group, and Tele-Wave Technology. I have not heard anything about any
- other application preparation firm.
- Also, take note that there is a freeze on all applications at this time
- and the FCC is currently changing what type of data will be needed for
- the application.
- Also, please note the following public notice issued by the FCC:
-
- ****************************************************************************
- Public Notice - 13244 - May 24, 1991
-
- DOMESTIC FACILITIES DIVISION ADVISORY FOR MULTICHANNEL MULTIPOINT
- DISTRIBUTION SERVICE APPLICANTS
-
- It has come to our attention that application preparation firms are
- offering settlement opportunities to Multichannel Multipoint Distribution
- Service (MMDS) applicants as part of their application preparation services.
-
- Applicants may not enter into a settlement agreement prior to having their
- application placed on public notice as accepted for filing. Until an
- application has been accepted for filing, it may be returned as unacceptable
- and thus would not be eligible to be included in the lottery for a
- particular market. An application which is ineligible to be included in a
- lottery is not eligible to be included in a settlement group and could not
- be counted towards the cumulative chances awarded to a settlement group. 47
- U.S.C. S309(i), 47 C.F.R. S21.33(b).
-
- Moreover, each person entering into a settlement group must demonstrate
- that the MMDS application was filed without the intention of entering into a
- settlement group. Each individual applicant for MMDS must be the real party
- in interest of its application. 47 C.F.R. SS21.13(a)(1), 21.33.
-
- Any questions may be addressed to Susan Magnotti, Domestic Radio Branch,
- (202)-634-1773.
-
- -FCC-
- ****************************************************************************
-
- Q. WHO DO I CONTACT FOR MORE INFORMATION?
- A. FCC
- Common Carrier Bureau
- Washington, DC 20554
- (202) 634-1706
-
- Wireless Cable Association International, Inc.
- 2000 L Street, NW Suite 702
- Washington, DC 20036
- (202) 452-7823
-
- ---------------
-
- EQUIPMENT:
- There are several companies that provide equipment and consulting services.
- If you are interested in this, you may want to pick up the latest copy of
- The Broadcasting Yearbook or Multichannel News. These can be found at most
- large libraries.
-
- Also, I would strongly suggest calling the FCC and the WCA and ask for more
- information.
-
- ---------------
-
- For additions, clarifications, corrections, or if you just have a few
- questions, please feel free to e-mail me.
-
- DISCLAIMER: I have no affiliation with any MMDS, MDS, DBS, ITFS, OFS,
- Radio, Television, broadcast station, or regular cable system. I am
- definitely not an expert in any of these areas. I have tried, to the best
- of my ability, to interpret and relay the most accurate and up to date
- information. However, I do not guarantee the accuracy of this information
- as some of my sources may be biased or incorrect.
-
- B. J. Catlin
-