WASHINGTON—ADT Security Services Inc. is urging the Federal Communications Commission to force wireless carriers to keep offering analog service until 2010, noting it cannot meet the Feb. 18, 2008, sunset date because the industry lacks enough digital equipment and technicians needed to install that equipment.
Security companies like ADT use cellular technology as both primary and backup links to call alarm monitoring centers because intruders can defeat alarm signals by cutting telephone lines.
Today, only Telular offers digital wireless equipment to the security industry, using GSM technology, ADT claims in its filing. However, at least one company, a division of Numerex Corp., also offers digital wireless security services.
ADT also said no equipment exists for use on CDMA networks today, and none is expected to be available in the near future.
“ADT has taken steps toward implementing its comprehensive analog cellular alarm radio replacement plan when a steady supply of digital cellular alarm radios becomes available. But with less than 16 months until the sunset, this is a gargantuan task for ADT and the alarm industry, since new units must physically be installed in more than 1 million residential, commercial and government locations industrywide,” said Phillip McVey, ADT business vice president. “In addition, the only cellular alarm radios available to the market within the next quarter operate on GSM cellular networks. The lack of alternative signaling formats (i.e. CDMA) will leave many customers without adequate coverage. Due to the combination of these factors, there is a high probability that the alarm industry will not be able to complete upgrades to digital cellular alarm radios by Feb. 18, 2008.”
The nation’s largest carrier said the alarm industry has had years to prepare for the impending deadline. “Parties have been on notice for years that analog service is going to sunset in February 2008,” said Brian Fontes, vice president of federal regulatory affairs for Cingular Wireless L.L.C. “The analog sunset will allow spectrum to be put to better use for more advanced wireless services that benefit consumers and the economy. Delaying this transition is the same as promoting the inefficient use of spectrum.”
Cellular carriers have been pushing the FCC to remove the requirement that they use a portion of their spectrum for analog service.
But when the FCC announced the Feb. 18, 2008, date, the alarm industry was unaware of the significant impact the change would have on it, said John Prendergast, ADT outside counsel. “The significance to the alarm industry was not apparent,” said Prendergast at a press briefing. “I am not sure the cellular industry was aware of the impact on this application.”
ADT is pressuring the FCC to make a decision soon. As it stands today, the security industry has not been aggressively swapping out analog systems, pointing to a lack of digital equipment and technicians. ADT has been installing digital GSM equipment when filling new orders, but can’t do that in some areas where CDMA technology dominates. As a result, some new orders have been completed using the soon-to-be-defunct analog technology.
“With the GSM products available from Telular, the alarm industry has perhaps adequate product availability for new placements, but does not have sufficient product to begin an aggressive analog swap-out program” said McVey. “Assuming unrestricted product availability in October 2006 (16 months prior to the analog sunset), the industry would be required to convert an average of 62,500 units per month. However, there is no widespread availability of replacement radios by October 2006; and this ambitious replacement schedule does not take into account the demand for digital radios created by new customer orders. As more customers adopt Voice over Internet Protocol and other digital-phone technologies in place of traditional landline phone service, the demand for cellular-alarm radios has skyrocketed. Over the past year, ADT cellular radio demand has doubled. This is exacerbating supply issues by approximately 10,000 units per month to increase demand to over 70,000 units per month.”
