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AMTA RECOGNIZES CHANGES IN INDUSTRY

Dear Editor:

I feel a need for clarification is in order regarding an unfortunate factual error appearing in your Oct. 4 issue. While the headline was correct “Associations decry AMTA auction plan,” AMTA is not seeking 10 megahertz for commercial use only, thus implying to dump private radio interests for the self-serving benefit of the remaining SMR operators.

AMTA has always recognized the need for private internal systems, and for shared systems, too. In fact, our proposal recognizes this very fact. Our members simply believe that the current plan for the 450-MHz band is not working today, and will continue to deteriorate in the coming years. Despite the heated opposition, stemming from the old “A” word (auctions), there really hasn’t been much debate on the merits of what AMTA is really trying to accomplish and why.

No one should be at all surprised by the reaction from the private radio groups, especially frequency coordinators, who are using our proposal to rally their troops against spectrum auctions. That is to be expected for obvious reasons. Let’s look at some facts:

In most metropolitan areas, we simply have too much congestion, too much interference, and no prospects for any new low-priced technologies small businesses can benefit from. Already we have seen the departure of some well-known radio equipment manufacturers from our industry. From a manufacturer’s point of view, lack of spectrum equates to reduced radio sales. Without new spectrum opportunities, manufacturers have little incentive to invest in new R&D and offer new types of business communication equipment. What is being sold today is essentially the same type of equipment that has been offered during the past 20 years, and at the same high prices to make up for the limited production runs.

Today, radio systems operating at 450 MHz are perhaps reminiscent of what it must have been like at a time when early telephony relied on party lines as the method of choice.

But today, the “party” is over. We need a spectrum management plan for the future. After all, how much longer will small-and medium-sized businesses want to pay $500 or more for a simple two-way push-to-talk radio? We know that many larger wireless providers are developing new types of subscriber equipment that will offer detailed messaging, automatic vehicle and person location services, and two-way remote monitoring.

Today, under current licensing rules, no one can be denied the use of shared frequencies in the Industrial and Business portions of the refarmed bands. The only question for frequency coordinators is to find the best channels for a particular user. Even if it is true that such a licensing scheme is working (in most cities it is not), things can only get worse. First, there will be more interference problems. Second, there will be increased overcrowding.

Third, there will be fewer equipment manufacturers to offer equipment. Fourth, there will be no real incentive to offer new types of business and industrial applications because new technologies can’t be implemented properly on shared spectrum.

If the forces who oppose change win out, we all lose. What we will have is ancient equipment that some few users will cling to, while the majority, seeking newer and improved services, will move to other frequency bands. Not only will outsiders refer to our ancient radios as “legacy” equipment, they will look upon the 450-MHz band as the “legacy band.”

AMTA’s proposal attempts to strike a balance between private internal systems and small commercial operators.

Alan R. Shark

President & CEO

AMTA

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