New brickbats for
Northpoint's Broadwave

Congress cooks new delay for satellite alternative

By David Everitt

    The satellite wars continue.
   Last November the Federal Communications Commission issued a ruling on Broadwave, Northpoint Technology’s proposed transmission system. The agency declared that Broadwave would not interfere with satellite-broadcasting service. 
   For a little while, at least, it seemed like the crucial issue in the Northpoint-DBS conflict had been settled.
    But not quite.
   Now Congress has stepped in to supercede the FCC’s ruling. A new law, passed at the end of 2000, stipulates that more testing is needed.
   To recap: Broadwave would make use of part of the satellite spectrum while transmitting digital video and data signals from earthbound towers. 
    DirecTV and EchoStar have insisted all along that this system would disrupt their satellite transmissions. Both sides have conducted studies and--what else?--each side has produced results that support its position.
   When the FCC ruled that Broadwave would not interfere with other satellite broadcasts, it took a step toward clearing the way for the system to reach the marketplace. But it was a very tentative step. The agency still didn’t award Broadwave a license.
   Now Congress has made the FCC’s mixed signal even less meaningful. 
   Despite the FCC’s assertion that Broadwave poses no problem to DBS operations, a provision inserted into a new appropriations bill makes it necessary for the agency to conduct an independent study of the interference issue within 60 days.
   This has been something that the satellite industry has been trying to get for quite awhile. Last spring it lobbied for an amendment to a House bill that would have required an independent test. 
   The amendment made it into the bill, but only temporarily. It was deleted before the proposed law was put to a vote. The requirement then sprang back to life in December’s appropriations bill thanks to the efforts of Representative Mike Oxley of Ohio.
   Three weeks ago, the Satellite Broadcasting and Communications Association followed up on the passage of the bill by firing off a letter to the FCC, asking to meet with the commissioners so that its executives could discuss how the study will be conducted.
   "We wanted to ensure, prior to allowing Northpoint to share our spectrum, that there will be, in fact, no interference," says James Ashurst, SBCA’s director of communications.
   This statement may sound diplomatic, as if satellite broadcasters are conceding that the test results could go either way. But don’t get the wrong idea. DBS providers have not become agnostics about this thing.
   "We still regard the Northpoint system as a threat to DBS service," Ashurst says.
   In the past, Northpoint has opposed the idea of a new, independent study. The company has characterized this kind of measure as unnecessary, as nothing more than a delaying tactic, an extra requirement placed on its proposal that other proposals have not been subjected to.
   Now the company states that it has no problems with the new independent-test provision.
   "We supported this testing provision, we’re comfortable with it. We believe this will put the issue to bed once and for all," says Toni Bush, Northpoint’s executive vice president.
    She acknowledges Northpoint’s objections in the past, but adds, "We’re not worried that our technology isn’t going to work. We’ve said all along that our system would not interfere with DBS, and this is another opportunity to demonstrate that."
   Despite the high-road statements, Northpoint believes it has had to endure some unfair scrutiny. Bush points out that several other companies, including some nongeostationary satellite systems, applied for licenses at the same time Northpoint originally petitioned the FCC.
   "I think it’s interesting," Bush says, "that none of them were subjected to additional testing."


-David Everitt covers technology for Media Life, writing from Huntington, New York.


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