Ottawa’s TMI wins critical U.S. battle to build and launch next-gen mobile satellite

TMI Communications has won a lengthy U.S. battle to secure frequencies for a new mobile satellite that will transform the Ottawa-based company from a telephony to a broadband services provider. The July 17 decision by the Federal Communications Commission (FCC) to award 3.5 MHz of contiguous spectrum to eight applicants ends a decade-long feud that pitted mobile satellite services (MSS) companies against terrestrial competitors who fought hard to have the spectrum reassigned for their use. With approval finally in hand, BCE Inc-owned TMI can now move forward with plans to develop, build and launch its Cansat M-3 satellite within five years into the 106.5 degree west orbital slot, which has already received approval from Industry Canada. An executive with TMI says it’s premature to say what services will be offered, although the satellite will be capable of providing third-generation voice and data services, including high-speed Internet to rural and urban areas across North America. The FCC licence authorizes TMI to service the U.S. market. "It’s a landmark decision for MSS," says Liz Tasker, VP business development and service delivery at TMI. "With the CTIA (Cellular Telecommunications and Internet Association) getting involved in the order, it basically put a fairly significant wrench in the process and we’re delighted to see the FCC has committed to MSS." The cellular industry lobbied hard to have the 2 GHz frequencies reallocated for terrestrial use, a move opponents warned would severely cripple the fledgling satellite companies’ attempts to finance and build next-generation systems (RoW, May, 28/01). In a last ditch effort on July 12, the CTIA hoped to tempt the FCC by suggesting that it could reap the monetary rewards of auctioning the spectrum, despite a law prohibiting the auctioning of satellite frequencies. It’s no secret that the MSS industry has had its financial troubles, and the CTIA tried to convince the FCC that awarding valuable spectrum to satellite companies is too high a risk. By siding with the satellite companies and handing over the spectrum for free, the FCC has signaled its confidence in this industry’s ability to survive and to expand beyond its traditional markets. Another licence winner is Globalstar LP, which has a subsidiary in Canada. Peter White, GM at Globalstar Canada, agrees the FCC decision solidifies the future for MSS. "(Access to more spectrum) is a great addition to allowing us to expand," he told Report on Wireless. "What this means is that the future services that we want to do, (such as) improved data services, avionics, and some different programs, we’ll be able to offer those services." The additional spectrum, a 3.5 MHz chunk for each company, also provides MSS companies with the ability to compete on an equal footing with terrestrial carriers in urban markets. "We don’t have the capability to deliver as many urban services that the (wireless) carriers can in large massive centres where it’s easy for them to justify some of the things they put out," explains White. "With larger spectrum, it allows us to address a lot of different applications." New services still a few years away Each of the licensees have certain milestones to meet as part of their conditions of licence (see box for those pertaining to TMI). The companies will also start looking at what new kinds of services will eventually be offered to customers. For Globalstar, the additional spectrum will make it possible to offer higher speed services. While the company already offers some data capabilities such as a direct Internet connection and a dial-up service, White says requests are up every week. "And these are the types of things that we’re looking long-term will be really helpful in making our business successful," he says. "(For example), if we band eight tranceivers together to give a higher speed data channel, what type of applications can we develop with it?" Not all the spectrum in the 2 GHz band was made available to the satellite operators. The FCC decided to keep .38 MHz in each of the bands until it considers all other pending proposals related to the band.

Ottawa’s TMI wins critical U.S. battle to build and launch next-gen mobile satellite

News | July 24, 2001

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