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FRIDAY - JULY 12, 2002

Dear Friends and wireless professionals,

I have some interesting news for you this week, but first my regular disclaimer:

This is my weekly newsletter about Wireless Data and Radio Paging. You are receiving this message because you have either communicated with me in the past about a wireless topic, or your address was included in another e-mail that I received. This is not a SPAM. If you have received this message in error, and you are not interested in these topics, please click here, then click on "send" and you will be promptly removed from the mailing list.

WIRELESS NEWS

FCC INCREASES ANNUAL REGULATORY FEE TO $0.08 PER PAGER

On July 5, 2002, the FCC released its decision establishing its schedule of regulatory fees payable between September 10, 2002 and September 25, 2002 by FCC licensees and other entities regulated by the FCC. In its decision the FCC rejected AAPC's and other paging carrier opposition to its increase of the fee to $0.08 per pager. The FCC acknowledged that "using a higher unit estimate" as urged by AAPC "would significantly lower the per unit fee," but it ruled that "the commenters have not demonstrated that those estimates accurately represent the number of paying units currently in use by the messaging industry." The FCC went on to rule that other paging commenters "have provided no basis to substantiate the claim that a $0.03 annual increase per unit will be damaging to the industry."

The FCC decision is particularly disappointing and disingenuous. AAPC's comments had pointed out that in recent years the number of paging units used by the FCC to calculate the annual regulatory fee was substantially lower than—by as much as 33 percent—the number of units reported by the FCC to the United States Congress in its annual reports on the state of CMRS competition. The effect of this discrepancy was to artificially inflate the regulatory fee paid by paging carriers over the years, a fact which totally escaped the attention of paging industry representatives at the time. This year, when confronted with its discrepancies, the FCC's response, astonishingly, was simply to impugn the accuracy of its reports to Congress!!

In addition, the FCC's decision created a new and more onerous legal standard which it thus far has applied solely to the paging industry. In the past, for example, when the cellular industry disputed the FCC's estimate of units in service for purposes of calculating the annual per unit regulatory fee, the FCC simply accepted the cellular industry's estimates without requiring it to demonstrate that those estimates accurately represent the number of paying units currently in use.

The core problem exposed by the FCC's regulatory fee methodology is that the allocation of regulatory expense to the paging industry is grossly outdated and excessive, resulting in inflated regulatory fees no matter what estimates of units in service are utilized in the calculation process. In a concurring statement, Commissioner Copps noted that the FCC's decision "fails to address the underlying concern about revisions to the Commission's methodology" but took "some comfort . . . that the Commission plans to have in place a new accounting system in the near future."

At a minimum, the FCC's feet need to be held to the fire on this issue. Section 9(i) of the Communications Act, which requires the FCC to develop a suitable cost accounting system for calculating regulatory fees, has been in force for several years. In its decision for 2002 the FCC said only that it "is planning a new improved cost accounting system" which "we anticipate to be operational after sufficient testing." There is no suggestion in the FCC decision that the new system will be operational "in the near future" as stated by Commissioner Copps; and AAPC informally has been advised that a new system will not be place before at least 2004. In the meantime, regulatory fees are likely to continue to be artificially inflated and excessive, absent other corrective action by the FCC.

Kenneth E. Hardman
MOIR & HARDMAN
1015 - 18th Street, N.W., Suite 800
Washington, DC 20036-5204
Telephone: (202) 223-3772
Facsimile: (202) 833-2416
Pager: (978) 788-1499
kenhardman@worldnet.att.net


WorldCom plans wireless exit

July 08, 2000—With the possibility of bankruptcy hanging heavy over the company and investors finally able to react to its financial transgressions, WorldCom Inc. reiterated plans last week to divest its wireless business and secure additional funding to help see the company clear of its current financial problems.

Speaking at a press conference last Tuesday, company president and chief executive officer John Sidgmore said WorldCom still planned to exit its wireless businesses, including its wireless reselling, Skynet paging and MMDS service, but gave few specifics on potential buyers."We are looking at all of our wireless assets for sale," said Sidgmore. "We are in conversation with several different parties on all those businesses."

You can read the whole story in RCR Wireless News.


THE PTC VOTES TO JOIN THE AAPC

PAGING TECHNICAL COMMITTEE ALLIES WITH AAPC
St. Paul, MN (July 2, 2002)—The Paging Technical Committee (PTC), formerly affiliated with PCIA, has voted to ally with the American Association of Paging Carriers (AAPC). AAPC will provide needed support for meetings, website activities and subcommittee activities. The PTC is primarily made up of engineering representatives of paging carriers and industry vendors. It provides a forum for discussion and development of standards that benefit to the paging industry as a whole. Historically, the PTC was responsible for the creation of TNPP, WCTP and other industry-wide protocols. Participation in the PTC was formerly predicated on membership in PCIA. However, under the new structure that restriction is no longer in force. The PTC membership is open to additional companies. If you wish to become a member of the PTC, please email your contact information to:

info@pagingcarriers.org

Further information:
join aapc Stephen Oshinsky
Chairman, PTC
(601) 944-7322
E-MAIL ADDRESS REMOVED
Barry Kanne
Vice-chair, PTC
(770) 441-2100 ext. 114
barry@tga.com

Personal Location Based Services

RCR Wireless News published an interesting article about how "Personal Telematics" is shifting more towards Fleet Management Systems (FMS). I got word yesterday that my friends at The Wireless Watchman are about ready to start demonstrating their new ReFLEX25 FMS products. Check out their web site, these location based services are going to be great.


The following is from the Wireless Brew, a wireless newsletter:

Verizon Wireless announced the availability of Vindigo, a personal navigation application for wireless phones that can be downloaded over the air onto select phones. Verizon Wireless, the first carrier in North America to offer downloadable applications to consumers nationwide, chose Vindigo because in more than 25 major metropolitan areas, Vindigo has comprehensive local information on where to eat, shop, and play.

The service is complete with full-color maps, ratings and reviews from brand-name content providers, and includes driving directions to any Vindigo listing. The service is available to Verizon Wireless customers for $3.75 per month and will appear on their monthly phone bill.

Now THIS is real competition to some of the services that two-way paging companies wanted to offer. It looks like some of them waited too long. Others, like The Wireless Watchman, are ready to take advantage of certain niche markets and should do well.


WANT TO BUY WANT TO SELL
Motorola Golay Numeric-Display KeyNote pagers, any frequency band.

Advantra, the pager manufacturer in Belgium has an inventory of one-way pagers (ex-Philips products) that they would like to sell—at some very good prices:

QUANTITY MODEL PROTOCOL UNIT PRICE
19,000 TWOCAN POCSAG (alpha) $25,00
32,000 FIORI FLEX (alpha) $38.00
30,000 MYNA/WREN FLEX (numeric) $22.00
20,000 ENTERPRISE REFLEX (1.75) $68.00
 Motorola PageBridge paging terminal. If you don't see what you need here, please tell me what you are looking for and I will help you find it.
 

eTouch pager

Check out the eTouch pager. A great product at a great price! Click on the pager for more information.



MYSTERY SOLVED
I finally found out why about a dozen or more of these newsletters occasionally get returned by various e-mail systems around the world. There is a bug in the Microsoft Exchange Server that keeps it from delivering an e-mail message that is larger than 4,096 bytes. Microsoft has confirmed this to be a problem in Microsoft Exchange Server version 5.0. This problem has been corrected in the latest U.S. Service Pack. I doubt if anyone is going to upgrade their e-mail server just to get my newsletter, but if you are interested, you can read about it at: http://support.microsoft.com/default.aspx?scid=kb;EN-US;q176455.


OTHER SITES TO VISIT ON THE INTERNET
http://braddye.com/promos.html Copies of all my previous paging newsletters
http://braddye.com/new_job.html My job search page
http://braddye.com

The Paging Information Resource home page


ADIÓS AMIGOS
Well, that is all I have for this week. Please let me know if you hear any news that I can include in next week's newsletter.

GOOD-BYE UNTIL NEXT WEEK

PAGING
INFORMATION
RESOURCE

Best regards to all, and have a great weekend,

BFD signature
Brad Dye

Wireless Data Consultant
Dallas, Texas USA
Telephone: 214-219-9112
Cell phone: 972-523-8258
http://braddye.com/

(FLEX, ReFLEX, and InFLEXion are registered trademarks of Motorola Inc.)

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