From: bc338569@longs.LANCE.ColoState.Edu (Brian J. Catlin)
Newsgroups: rec.video.cable-tv
Subject: Wireless Cable FAQ
Date: 3 Oct 92 08:36:39 GMT
Organization: Colorado State University - Electrical Engineering

My first try at posting this ended up in my local news server having dinner.

Since nobody voiced any opposition to this, I will now start posting this 
FAQ every month or two.

***** Wireless Cable - Frequently Asked Questions (FAQ) *****

Compiled by Brian J. Catlin (bc338569@longs.LANCE.ColoState.Edu)

Last modified on October 2, 1992.

NOTE:  Most of this information was taken from FCC Public Notices and other
information sent to me by both the FCC and the Wireless Cable Association
(WCA).

---------------

ABBREVIATIONS USED:

MMDS - Multichannel Multipoint Distribution Service.  Two sets of four
       channels each.  Also known as "Wireless Cable".
MDS  - Multipoint Distribution Service.  Two channels that are simialr to
       MMDS.
ITFS - Instructional Television Fixed Service.  Channels that must have a
       minimum of 20 hours per week of educational programming.
OFS  - Private Operational-Fixed Microwave Service.

Q.  WHAT IS WIRELESS CABLE?
A.  Wireless cable is a name given to 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, 
    generally 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 utilizes 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 CHANNELS ARE USED?
A.  2,150 - 2,162 MHz  (Total of 2 MDS channels)
    2,500 - 2,596 MHz  (Total of 16 ITFS channels - ABC&D groups)
    2,596 - 2,644 MHz  (Total of 8 MMDS channels - E&F groups)
    2,644 - 2,686 MHz  (Total of 4 ITFS channels - G group and 3 OFS 
                       channels - H group)

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.  66 channels
    could be available if digital bandwidth compression is used.  This, of 
    course, depends on which channels are already used in your area.  
    Furthurmore, 20 of the channels (40 with compression) are borrowed from 
    ITFS services.  These channels are earmarked for educational use.  This 
    means that there is a requirement to program 5 hours per week per 
    channel of educational material.  The FCC is currently deciding if they 
    should re-allocate a few more channels in the 28 GHz band.  I will keep 
    an eye out for the decision.

Q.  WHAT EQUIPMENT IS IN THE SUBSCRIBER'S HOME?
A.  Each household subscribing to the service has a small antenna on their 
    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.  With few exceptions, it can carry any of the typical cable channels (In 
    the past, some channels refused to let wireless cable systems carry 
    their signals).  It can also send the 'SuperGuide' data along with 
    similar services.

Q.  WHAT ABOUT COPYRIGHT ISSUES?
A.  Currently, a temporary compulsory license has been issued by the 
    copyright office.  A compulsory license enambles systems to retransmit 
    broadcast signals for a pre-established fee so as to compensate 
    producers of TV programs.  The temporary license will expire on December 
    31, 1994.  The temporary license was given until the copyright office 
    had a chance to decide if the copyright act of 1976 would classify MMDS 
    as a cable system.  They have now announced that MMDS does NOT fall 
    under the description of cable.  Therefor, MMDS stations can no longer 
    get compulsory licences.  If this decision becomes final, it could be 
    devistating to the wireless cable industry.

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 transmit 
    business data.  However, since MDS's creation in the early 70's, the 
    service has become increasingly popular in transmitting entertainment 
    programming.  Because the FCC does not regulate the content of the 
    transmission, alternative uses would not be prohibited.

Q.  HOW DOES MDS WORK COMMERCIALLY?
A.  An MDS licensee, which is similar to a braodcast 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.
    An MDS applicant can choose to operate as a common carrier.  In the 
    telecommunications industry, a common carrier may also provide services 
    such as audio only transmissions, telephone, or data.
    If an MDS 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.
    An MDS 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 of all, you should contact the FCC and get the appropriate
    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 ESTABLISH 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 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 process. Even
    with new rules approved by FCC (TVD Oct 15 p5), challenge to develop
    wireless cable, particularly if there's 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), so it may be feasable 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 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(sp?))

Q.  IS WIRELESS CABLE EQUIPMENT RELIABLE?
A.  A number of 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 can 
    also 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.  "That 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 obtain, "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 an 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 preperation 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.  All of 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.  I have not
    heard anything about any other application preperation firm.
    Also, take note that there is a freeze on all applications at this time.
    The FCC is currently changing what type of data will be needed for the
    application and they are considering making more channels available in
    the 28 GHz band.
    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 Mulipoint 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

---------------

There are quite a few companies that provide equipment and consulting 
services.  If you are interested in this, you may want to pick up a copy of 
The Broadcasting Yearbook 1991.  This 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.

B. J. Catlin
----------------------------------------------------------------------------
-----  Brian J. Catlin                    * Colorado State University  -----
-----  bc338569@longs.LANCE.ColoState.Edu * Electrical Engineering     -----
-----  (303) 495-2762                     * Fort Collins, Colorado     -----
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