Trying to compete with satellite-industry giants, Celsat America Inc., a small, domestic player in the mobile satellite services arena, filed comments with the Federal Communications Commission opposing the allocation of any new spectrum to applicants that already have licenses.
“According to the FCC public notice, six applicants-including Iridium (L.C.C.) and Globalstar (L.P.)-have each asked for all of the available new spectrum, even though they all have allocated and unused spectrum,” said David D. Otten, chairman and chief executive officer of Celsat.
“They have asked for this new spectrum, in my opinion, without offering a sufficient explanation for why they require such a large allocation. Indeed, what each has asked for is a tenfold increase over their current licenses,” Otten contended, also pointing out that many of the applicants with allocated spectrum have yet to offer service. There are a total of nine applicants.
Celsat hopes the FCC will grant it a license for spectrum to launch a patented MSS system using a single geostationary satellite that is compatible with terrestrial personal communications services networks. Celsat’s system initially would permit operation anywhere in the continental United States, along with a significant portion of Canada and Mexico.
The company was supported before the FCC by members of the GSM Alliance L.L.C., a consortium of PCS carriers that includes Aerial Communications Inc., BellSouth Mobility DCS, Microcell Telecommunications Inc., Omnipoint Communications Inc., Pacific Bell Mobile Services, Powertel Inc. and Western Wireless Corp. Celsat does not plan to market its services to end users, but instead to members of the alliance and other carriers at wholesale prices.
“Celsat has the potential to provide alliance members with instant national coverage,” explained Don Warkentin, president and chief executive officer of Aerial and chairman of the GSM Alliance. “Members of the alliance will be able to offer the most complete coverage of North America available anywhere-at low PCS prices.”
Equipment manufacturers and vendors, including Cellular Communications Inc., Hughes Network Systems Inc., L.M. Ericsson and Northern Telecom Ltd. also are backing Celsat. Ericsson even filed comments with the FCC expressing its support for the company, saying the GEOS system will “offer the U.S. market very attractive, low-power (0.25 watts), slim-line, dual-mode PCS/satellite pocket phones without the need for big cigar-like antennas on the units.”
Celsat plans to offer communications services, including voice, fax, data, paging and Internet services, at a cost to end users of 8 cents per minute, including long distance, vs. the dollars per minute other MSS carriers have stated their services will cost, Otten said. The company hopes the FCC will respond within three to six months, he added.
Celsat America is owned 80.2 percent by Celsat Inc., 17.6 percent by EchoStar and 1.1 percent by industry veteran William B. Ginsberg and Omnipoint chief George Schmitt.
