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.
Supersedes: <MMDS_FAQ.921203@Allison100.HALLS.ColoState.Edu>
Date: Tue, 05 Jan 1993 06:40:53 GMT
Expires: Wed, 3 Feb 1993 00:00:00 GMT
Reply-To: bc338569@longs.LANCE.ColoState.Edu
Organization: Colorado State University
Followup-To: rec.video.cable-tv

Archive-name: wireless-cable
Last-modified: Sun, January 3, 1993

***** 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 conventional 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.
+++ With a new compression technology (made by Zenith) that will soon be
+++ available, almost 300 channels would be available.  I haven't heard much
+++ about the quality of this new compression, but it sounds promising.

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