WASHINGTON-The battle over automatic roaming crystallized between entrenched carriers and their would-be competitors as parties recently filed reply comments in a proceeding that could change the rules by which carriers enter roaming agreements.
Large carriers do not want the Federal Communications Commission to mandate automatic roaming.
While small carriers, for the most part, also are concerned about new regulations, they seem to see the need for some roaming to help fill out networks.
Sprint PCS said it is wary of requests Verizon Wireless and Cingular Wireless Inc. made in their initial comments to limit “in-market” roaming.
“Cingular and Verizon never define adequately what they mean by `in-market’ roaming. … The roaming contracts with which Sprint PCS is familiar do not distinguish between `in-market’ and `out-of-market’ roaming. In this regard, Sprint PCS is willing to execute roaming contracts with any carrier that utilizes handsets compatible with Sprint’s CDMA network,” said Sprint PCS in its reply comments.
The argument of SouthernLinc, the iDEN division of the Southern Co., is a bit different. SouthernLinc identifies itself as a small enhanced SMR operator that is trying to compete with Nextel Communications Inc. Nextel seems to view itself as a commercial mobile radio services carrier, not an SMR operator.
Nextel says that an automatic-roaming requirement would create disincentives for big carriers to build out their networks and incentives for small carriers to not invest in building technologically efficient networks.
“No evidence exists of a CMRS marketplace failure justifying the [FCC] imposing a CMRS automatic roaming mandate. … Mandatory automatic roaming could result in significant consumer harm by creating disincentives for carriers to build facilities, invest in technology and differentiate products and services,” said Nextel in its reply comments.
Sprint PCS countered similar arguments by Verizon and Cingular by pointing out that “although Sprint PCS has offered in-market roaming since its inception five years ago, it has nonetheless built out its network faster than any carrier in history. In fact, Sprint PCS installed more cell sites in its first five years than the entire cellular industry during its first 10 years (1983-1994).”
One small carrier, Leap Wireless International Inc., said in its original comments that it does not want a roaming requirement because it would do harm to its business model of offering a no roaming, no long-distance, flat-rate calling service.
“Regulation would jeopardize the introduction of competitive new services, such as Leap’s Cricket service plan, and thereby act to the detriment of the public interest,” said Leap in its original comments. It did not file reply comments.
