BOSTON-It may be a little battered and bruised, and missing a few former compatriots, but the wireless broadband industry made a strong showing in Boston last week at the Wireless Communications Association International 2001 convention. Conference participants used humor and humility to tackle issues such as network deployments, spectrum use and technology developments.
Perhaps the most humble of them all was William J. Rouhana, president and chief executive officer of local multipoint distribution services carrier Winstar Communications Inc., which filed for bankruptcy in April. During a panel session which also included Tom Sugrue, chief of the Wireless Telecommunications Bureau at the Federal Communications Commission, Jai Bhagat, chairman and CEO of Air2Lan Inc., and several other industry representatives, Rouhana joked that knowing the ins and outs of bankruptcy is “now a very important skill set in this industry.”
He shared his thoughts on why wireless broadband has taken such a hit, and how it can pull out of this slump.
“Like most other manias, it was overdone,” Rouhana said. “People will feel burned for a long time, even though they did it knowingly.”
He warned that there is no future for those who use incumbent local exchange carriers to connect to customers. He emphasized the importance of owning a network, although it remains to be seen whether the market is big enough for several companies to each own a profitable share.
“Winstar has as good a shot as anyone to find the answer to that question,” said Rouhana.
FCC Commissioner Kathleen Abernathy had everyone buzzing after she formally announced she advocates taking multichannel multipoint distribution services and Instructional Television Fixed Service (ITFS) spectrum out of contention to support third-generation mobile services.
“I am unwilling to jeopardize the rollout of wireless broadband services you are offering to consumers,” Abernathy said. “There are other options.”
The conference brought up several conflicting ideas as well, a sign that perhaps this industry is still a long way from finding its niche. Michael Keith, president and CEO of AT&T Fixed Wireless Services, said during his keynote speech that the competition for wireless broadband does not come from within the industry, but from similar technologies such as digital subscriber line and cable modem.
But others either plan to or already offer DSL or cable in addition to fixed wireless services, citing the desire to meet the differing needs of each customer, for some of which fixed wireless might not be the best option. MMDS carrier WorldCom Inc. is taking this approach as it gradually rolls out service to the U.S. residential market.
“It can only help our case by doing so,” said Michael Barnes, director of product marketing and development for WorldCom Broadband Solutions.
WorldCom launched wireless broadband service in Chattanooga, Tenn., and Bakersfield, Calif., last week.
Further confusion arose when the always-outspoken Chairman and CEO of Wi-Lan Inc., Hatim Zaghloul, said during the closing luncheon that an early residential play was questionable.
“To start anything by saying we want the consumer market is not the best way,” said Zaghloul.
But a quick scan of the industry reveals that the only carriers making any headway right now are targeting residential users. MMDS operators WorldCom, Sprint and Nucentrix Broadband Networks Inc. have emerged winners in gaining regulatory approval and paying customers without sinking into bankruptcy. Nucentrix received licenses from the FCC last week to launch broadband data and voice services in 57 of its markets across Texas, Oklahoma and parts of the Midwest.
Zaghloul did bring everyone together on several points however, including not overpromising on what services could be delivered when. As an adamant proponent of the OFDM Forum, Zhagloul also echoed the overarching plea for a single standard.
