Oh, the shifting winds of Washington.
The bill-and-keep interconnection proposal has been called the greatest issue facing the cellular industry this year. And when the Federal Communications Commission last December an nounced it would propose reforms that would no longer force commercial mobile radio service providers to pay local exchange carriers for terminating phone calls, it appeared the wireless in dustry was riding high.
But it now looks like there isn’t enough support among FCC com missioners to let the proposal stand on its own. The United States Telephone Association has been particularly vocal in its con tempt for the bill-and-keep plan. USTA represents LECs, including the biggest LECs of them allthe Baby Bells.
But Bell companies also are the nation’s top wireless providers, which puts them in a precarious position.
Would they rather be assured in come as LECs under present in terconnect rules or should they be more conce rned with their wire less offerings – the fastest growning part of their companies? (it is estimated that LECs receive nearly $1 billion eacy year for terminating alls on their network.)
The wireless industry maintains it needs a reciprocal termination agreement – where no one pays any one for terminating a call and companies keep revenues from originating a call – to stay competitive with local wired telephone offerings.
Are the Bell companies clinging to profits they can achieve from local phone service, waiting until wireless offerings become their first source of revenue? When wireless holds 50 percent of the market, and half the calls are terminated by wireless carriers, will LECs change their tune?
That day is coming. So even if it looks like wireless is losing the battle, the war continues.
…Speaking of wars, Qualcomm Inc. finally has its chance to step into the manufacturing limelight, as its joint venture with Sony won two huge contracts fro CDMA handsets. Qualcomm Personal Electronics snagged a $500 million handset contract from Sprint Spectrum L.P. and a second contract, valued at $350 million, from PrimeCo Personal Communications L.P.
Sprint plans to introduce PCS service in several markets by the end of the year.
Although Qualcomm is easily identified as a CDMA technology developer, the company also wants to be recognized as a manufacturer. Now it has its chance. The mission: begin shipping CDMA phones next month.
