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10-08-1996OITY OF RIOHFIELD Knnnm oommission nawfl October 8, 1996 7:00 p.m. -- Study Session ROLL CAUL I .................... ... ..... ... I ............. . .. .... .. I I X.: X ...... NEW ITEM #1 Video on Wireless Communications Presentation and Discussion Jerry Knickerbocker, Director of Governmental Affairs, Minnesota Telephone Association Overview of the 1996 Telecommunications Act Dan Richards, Wireless North Communications PCS provider) Antenna Options and Generai Technical Requirements Adj(o)urnmentPi Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 861-9702." Com the Future July 8, 1996 The reproduction of this learner guide and course materials in whole or in part, in any form, by any electronic, mechanical or other means, now known or hereafter invented, including xerography, photocopying and recording, or in any information storage or retrieval system is forbidden without the written permission of TRA. Notice: The material contained herein is for planning purposes only and should not be used in the development of actual products without consultation of the appropriate ITU Recommendations, ANSI standards, or Bellcore Technical Requirements. While every reasonable effort has been taken to assure the accuracy of this material, errors may exist, and material may become obsolete by more recent ITU or ANSI decisions. Copyright © 1990 -1996 by Telecommunications Research Associates. iP1 Table of Contents Cellular Telephone Service ............ ............................1 -3 Cellular Fundamentals .......... ............................1 -6 Cellular Interconnection ......... ...............:...........1 -12 Digital Cellular Technologies . ...........................1 -15 Personal Communications Service (PCS) .................1 -17 FCC Licensing Rules ............. ...........................1 -18 PCS Options and Strategies .. ...........................1 -22 Competitors ........................... ...........................1 -23 PagingServices ............................. ...........................1 -28 Wireless Data Services .................. ...........................1 -31 Applications ........................... ...........................1 -32 Technologies ......................... ...........................1 -40 Data Network Service Providers .......................1 -43 Summary........................................ ...........................1 -44 Glossary of Terms and Acronyms .. ............................2 -1 UNDERSTANDING WIRELESS COMMUNICATIONS 0032 Welcome to TRA's video presentation on Wireless Communications. Wireless communications is generating great excitement within the communications industry. The promise of untethered communications with almost anyone, independent of their physical location, is very tantalizing and holds the potential to revolutionize the way we work and live. Many people will benefit from the applications we'll discuss here. For example, consider the convenience of a single, portable handset which works almost anywhere on the globe, served by a single telephone number. Or the increased productivity realized by the wireless integration of all your data communications needs. These are the promises of wireless communications. Combined with the unleashing of real competition in the domestic marketplace, the potential of the wireless revolution" promises to foster a competitive environment unlike any we've seen before. Cellular and Cable television providers, Local Exchange Carriers, Competitive Access Providers, and Interexchange Carriers are all looking intently at the huge revenue Personal Communications Service and enhanced Cellular service promise to generate in the marketplace of tomorrow ... and each player is determined to gain a large portion of that revenue. TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 OBJECTIVES At the end of this Video Learning Session, you should be able to: Understand and discuss the basics of wireless communications Understand competitive business strategies Demonstrate knowledge of wireless communications applications 30433 IRa 01995 At the end of this session, you should be able to understand and discuss the basics of wireless communications and support technologies, including Cellular, Personal Communications Service frequently simply called "PCS "), Paging Services, and Wireless Data Communications. We'll also help you to understand the market presence and business strategies for several major U.S. service providers. When you're finished with this video session, you'll be able to demonstrate a good level of knowledge concerning wireless communications, the applications for wireless communications, and how wireless mobility will affect today's communications marketplace (as well as the changes it promises for tomorrow). 1 -2 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — 1800) 872 -4736 TOPICS Cellular Personal Communications Service Paging Wireless Data 30434 Wk We'll start with a review of cellular telephone service providers: the major players in wireless service today. We'll also learn how the cellular industry evolved, as well as the nature of their current business. Our second topic examines the new entrants into the wireless communications marketplace: the Personal Communications Service providers. In many cases, these companies are really just cellular companies that have obtained additional wireless licenses, and intend to use these licenses to expand their service offerings into new territories or to improve their quality of service in a more competitive environment. In other cases, these providers are new entrants into the marketplace, with new ideas for competitive services. The key point here is that the FCC is opening up the market as a whole to a large number of players rather than the customary two, equal cellular players. Next, we'll look at Paging operators, and the expansion of traditional paging services to include new capabilities and exciting new end -user applications. Increasingly, today's wireless operators all want to offer data services, which will support a new set of applications. Examples of such applications include enhanced support of field personnel, more feature -rich radio dispatch systems, wireless E -Mail for increasingly - mobile employees, and support for Service reps closing out tickets. Finally, we'll discuss the announced strategies of some of the major service providers, such as AT &T, Sprint and the Regional Bell Operating Companies. 1 -3 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 In one sense, "wireless communications" is not a new concept. Services to support communications for vehicles in motion have been in place since the mid- 1940s, when the Bell System introduced a mobile telephone service in St. Louis. These early services were provided from a single, large antenna placed on the highest hill in the area (to provide the maximum coverage for the service). Because these systems used only a single antenna, the network capacity was severely limited. For example, in 1976, New York City had a total capacity of only TWELVE simultaneous, mobile calls. Because of the high cost of mobile service at that time, applications were extremely limited: doctors, mayors, and fire chiefs had mobile telephones ... but a business person on the road had to find a pay phone to obtain "mobile" service' In 1983, the Federal Communications Commission ushered in a new era in mobile communications, by licensing new blocks of radio channels to cellular carriers. 734 licensing territories were assigned, and in each territory two cellular operators were granted a license. One was awarded to a local telephone company, and the other license was awarded to an "interested party" (after either a hearing or a lottery). 1 -4 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 MANY CELL SITES f.. 30436 Here's how cellular service works. Cellular service providers built dozens of radio towers in each city. Each tower and its' associated radio equipment served a region called a "cell." Because there were many cells to serve a specific geographic region, each radio channel could be assigned to multiple cells across the entire area of the service provider, without a user placing a call in one part of town interfering with the call of another user (using the same radio channel) in a distant cell. Using this "cellular architecture," today's cellular networks have the capacity to serve thousands of simultaneous calls in each city. Because the capacity is so much larger in a cellular network, the cost of each call can be much lower. A lower cost per -call puts the price of mobile telephone service within reach of most users. As a result, cellular penetration has been on a steep growth curve since 1990, with the number of subscribers roughly doubling every two years. Today, cellular applications include communications for local business use, nationwide business travel, mobile offices, personal convenience, and emergency calling. 1 -5 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 30437 ELECTROMAGNETIC ENERGY RADIO FREQUENCY WAVES (RF) TRAVEL MUCH FARTHER TVVVVVftNVVtP" Y L Let's look at how a cellular call is transmitted. 01995 When a call is placed on a cellular network, the phone is assigned one of the fixed radio' channels. For the duration of the call, no other nearby cellular phones may use that channel. By placing only one call in a specific channel, multiple calls may take place within the same cell without the calls interfering with one another. Technically, a radio channel is an electromagnetic wave of an assigned frequency. The carrier wave can be conceptualized as a "pure" sine wave, as we've shown in our illustration. The radio equipment receiving the signal tunes to this specific frequency (which functionally excludes all nearby signals), and "locks -in" to the transmitter's signal. 1 -6 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 A MODULATOR and DEMODULATOR ARE NEEDED TO "PIGGYBACK" VOICE INFORMATION ON THE RF WAVE 30438 VV%"VV N m,"s To transmit speech using a radio frequency as a carrier, the speech signal must be added to the carrier signal. The pure sine wave is modified by any of a number of standard methods to include the information in the speech signal. This modification is called "modulation." Once a signal is received, the radio equipment looks for differences between the signal it is receiving (which contains the speech), and the unmodulated or "pure- sine wave of the frequency being used as a carrier. By interpreting differences between the received signal and the pure waveform, the equipment can derive the human speech pattern. Once the pattern has been derived, the equipment can transmit the waveform as an electrical signal. This signal can then be processed by a speaker system, to recreate the original acoustic patterns of the speech 1 -7 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 Radio signals are electromagnetic waves traveling in straight lines from their point of origin. Cellular antennas are mounted on towers or tall buildings because the signals travel farther if they are transmitted from a high point. At the power levels produced by cellular equipment, electromagnetic waves can travel several miles. So in a cellular network, towers may be up to ten or twenty miles apart. In a relatively congested urban area, towers may be placed much closer together to provide adequate coverage. When a cellular user initiates a call, the phone scans a set of control - channel frequencies, looking for a strong signal. Locating the strongest control channel generally indicates the phone has found the closest cellular tower. The cellular phone then signals the tower, identifies itself, and passes along a request to communicate with the destination phone number. Upon receiving the request, the cellular tower assigns a fixed channel for the exclusive use of the cellular subscriber for the duration of the call. The cellular network then hands the call to the landline network for call completion. Cellular billing systems charge for the call's "airtime" for both local and toll calls. In addition, the landline carriers will charge for any toll charges on long distance calls. 1 -8 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 When someone places a call to a cellular subscriber, the process is a bit different. When the cellular network receives a call destined for a cellular subscriber, multiple towers broadcast a signal (in their control channels), requesting the target subscriber's phone to respond. Once the cellular phone recognizes its address in this "paging" message, it will respond to a nearby tower, request and obtain a channel, and begin to ring. When the user answers, a two -way communications link is established. The cellular subscriber is usually billed for airtime, and the original caller is billed for any toll charges associated with reaching the cellular subscriber. 1 -9 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 - (800) 872 -4736 As a caller's vehicle moves to another area, the call is "handed" from one tower to another. As the subscriber moves away from the tower which is currently serving it, the signal will become weaker and weaker. As this happens, the tower will request other cellular towers in the neighborhood to tune their "hand -off" antennas to the subscriber's channel. Once the other towers have reported the strength of the signal they are receiving, the cellular equipment compares the signal strength at each of the multiple locations in the neighborhood. Once a tower begins to receive the, subscriber's signal more clearly than the initial tower, the network will execute a "hand- off." A hand -off describes the process of disconnecting the signal from the first tower and reconnecting the user to a different radio channel served by another radio tower. 1 -10 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 18001 872 -4736 When cellular phones were first introduced in the early 1980s. a subscriber's equipment could easily fill the trunk of a car. Advances in microelectronics in recent years have permitted phones to become smaller and smaller. Today, lightweight handheld units allow cellular telephones to be carried almost anywhere. These small handheld units allow access to all services available at desktop phones ... and often, much more (such as call waiting, caller identification, voice mail, and even short messaging services). As technology continues to advance, in a few years time today's compact handsets will look large and clunky! 1 -11 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 CELLULAR OPERATORS Interconnect to Local Exchange Carriers Interconnect to Interexchange Carriers Coordinate Roaming Arrangements with other Cellular Operators - 30443 m,M Cellular networks are connected to Local Exchange Carriers within their service areas, and pay fees to the LEC for the completion of their calls. These are called "interconnect fees," and Local exchange carriers have always been required to provide this service to wireless service providers. However, the regulations for interconnection to interexchange carriers ( IECs or IXCs) have been- much more fluid. Historically, Regional Bell Operating Companies who offer cellular service have been required to offer equal access (so their subscribers have been free to choose any long- distance provider they like). On the other hand, cellular operators not associated with an RBOC have not been required to provide equal access. As a result, some have chosen to re -sell the long- distance service of only a single interexchange carrier (usually as part of an agreement for lower rates from the IEC). The Telecommunications Act of 1996 has empowered the Regional Bells to provide long distance services under their own brand name, and in the future we expect all providers to bundle wireless access with long distance service. As cellular use has increased over the years, many subscribers have become accustomed to using their cellular telephones outside their local service areas. This means these subscribers are actually using a different provider's cellular network, and this activity is known as "roaming." In the past, cellular subscribers could only roam to those areas where their home provider had joint roaming agreement" with the local operator. In addition, complex registration procedures were required when a subscriber arrived in a new provider's local area. 1 -12 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 ROAMING Visitor Home Location r Location Register 3 Register While in LA, I I'm a Roamer" Los Angeles Cellular Orlando 30444 Cellular V; Today, the cellular industry has evolved to permit roaming throughout most of North America. When a roaming subscriber arrives in a new city, the cellular phone automatically registers with the local cellular network. Once the local network has the phone's registry information, it queries a database in the subscriber's local service area. If the cellular phone is identified as belonging to an authorized subscriber, the roaming arrangement is approved, and service is automatically provided. A roaming subscriber does not pay any flat monthly fees to the distant cellular operator. As a result, the per- minute charges for roaming are often quite high, relative to per- minute charges in a user's home territory, because the distant operator needs to be compensated for the subscriber's use of their network and facilities. 1 -13 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 As cellular service has become more and more popular, cellular operators have expanded the capacity of their networks. Initially, this was a mailer of building additional towers to increase the number of subscribers who could be simultaneously served in a given area. However, building additional towers is expensive, and increasingly impractical. Operators have to buy real estate, erect towers, and reassign radio channels to the new cells. Often, the whole expansion process is stalled by communities who consider the towers an eyesore. In some cases, cellular operators have been forced to build new towers inside church steeples, or even - camouflage towers as fake trees in city parks! These challenges have driven cellular operators to look to advances in technology to increase their system capacity. By shifting from an analog cellular system to a digital one, providers can more than triple the capacity of a given system without constructing any new towers. Unfortunately, there is no universal agreement among cellular providers as to which is the best digital cellular technology. As a result, two systems (which are incompatible with one another) have been introduced within in the United States: U.S. TDMA (short for Time Division Multiple Access) and U.S. CDMA (for Code Division Multiple Access). These names describe the digital access technology used in each system (which is their method of sharing the radio channels among multiple users). Since competing cellular service providers often support different technologies, it is important to know some of the differences between these two approaches. 1 -14 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 As different providers use each of these technologies, it is important to understand some of the differences between these two approaches. As we've already discussed, digital cellular systems allow higher capacity relative to analog cellular systems. Currently, TDMA triples the capacity of each radio channel (and with later upgrades, has the potential to redouble capacity again ). Currently, the greatest advantage TDMA systems enjoy over CDMA is TDMA's maturity. TDMA systems were ready for introduction more than two years before CDMA systems. Cellular operators who needed expanded capacity quickly generally introduced TDMA systems. However, most engineers expect that CDMA will eventually provide greater capacity than TDMA. From a subscriber's point of view, there is little or no inherent difference in the feature sets, the applications available, or the operation of the two systems. 1 -15 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 18001 872 -4736 U.S.:TDMA GSM U.S. CDMA 30447 m 1985 To furthur complicate matters, outside the United States yet another digital cellular system is used in many countries. When subscribers roam to Europe and much of Asia, they need to use cellular phones compatible with the "Global System for Mobiles" (GSM) standard. Fortunately, some Cellular operators in the U.S. provide their subscribers who travel internationally with a "smart card," which is inserted into purchased or rented GSM phones. These cards are programmed with the user's U.S. cellular number and billing information. The card and handset identify the U.S. subscriber to the GSM network, and enable international cellular communication. 1 -16 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 TOPICS Personal Communications Service i. wti•., 30448 01996 A Now let's turn our attention to Personal Communications Service, or PCS. The huge success of cellular service helped the communications industry persuade the Federal Communications Commission to license more companies to use radio frequencies for mobile communications service. However, the FCC did not offer licenses "free of charge" (through hearings or lotteries) as in the past. Instead, they auctioned available licenses to the highest bidders, which resulted in billions of dollars of revenue for the U.S. Treasury. The FCC envisions these frequency licenses being used for a vast variety of services and applications, as determined by the needs of the marketplace. To reflect this, the new licenses were not called "more and even better cellular" ... they were given a new name: "Personal Communications Service." The implication is that this new spectrum will be used to provide communications between one person and another, wherever they are located, combining voice, data, and paging services in a single service. 1 -17 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 PCS LICENSING TERRITORY 37 vw. st Y i6}.Y ba n f- -.., v. elk V0' CID a NO t 30449 P m/995 The licensing rules and geographical territories associated with PCS are much more complex than the relatively simple scheme of cellular (with two licensed operators in each region). Remember, the FCC's goal is to foster competition and introduce a wide variety of new entrants into cellular and landline communication services. First, the FCC established two licenses in each of fifty -one large (nearly state - sized) territories. These territories were called Major Trading Areas (MTAs). Most of these 102 licenses (fifty -one MTAs, two licenses in each MTA) were awarded through an auction process. 1 -18 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. 0 Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 PCS LICENSING TERRITORY 3'" mss' ; .` °.. 4 - -' • w '- 1''_.._.. Z7 J. V... 1'2 —' . ,11jy ` -`.zyn .. • c.. ?', r' spy... ,, .. t.._ .y x +, r.i' • s • . Y r•! w.• ti Rte` r 30450 m,O% In addition to the MTAs, the FCC has created other administrative areas for the licensing of PCS spectrum. Four hundred and ninety-two "Basic Trading Areas," or BTAs, were created as subsets of the MTAs. Four additional PCS licenses were reserved for each of these regions. Two of the four BTA licenses will be awarded only to "smaller" companies, with the intention that entrepreneurs may have an opportunity to offer niche applications on a small scale. The end result is that there are a possible six PCS service providers who may eventually be competing with one another within a given geographic area (as well against the two "incumbent- cellular operators!). In addition to the licensed PCS frequencies, the FCC has set aside blocks of unlicensed frequencies. These frequencies are meant to support cordless phones and private wireless data networks. These unlicensed frequencies will have no charges associated with their private .use. These frequencies might be used on a large corporate campus (supporting many cordless phones) or within a metropolitan hospital (allowing wireless communications between physician's Personal Digital Assistants and the hospital's Local Area Network). 1 -19 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 HIGH TIER SCENARIO CELLULAR BASED MEN t 6 t r tf+'f iT'` - °ice. -. t-. J Y G' man:, rte",."... l•r' z'. -- - s+Yls':''"'.i e. "'° s - MIA 1;^.x.. ::K. x7 =.'Y i ..r'i 4.:., .,:- _ •. `Ja, f-'FU'J" .1.• "'G O1B86ii"ii The FCC does not require the PCS license winners to provide a uniform "standard" service. In any given area, the new license holders may target multiple applications for their PCS service. For example, one or two operators in each area are expected to target the "traditional" cellular marketplace and compete with the incumbent cellular operators. Such networks are expected to be similar to those of today's cellular operators, so a new entrant's pricing may also be very similar. Other PCS licensees may be interested in providing local dial tone to small and large businesses, in competition with the local telephone companies. These operators may construct small, fixed antennas on the rooftops of customer buildings, to build a "wireless local loop." Such systems may not support mobile phones whatsoever ... but because they use the frequencies allocated to PCS they are technically Personal Communications Service systems. Other PCS operators may offer a low -cost walk- around service, supported by smaller antennas, low - powered handsets and base stations. These services will be marketed as low -cost alternatives to automotive cellular service, priced at less than half the normal per - minute charge for automotive cellular. There is a hitch, however: these low - powered handsets (like cordless phones you use at home) are designed to be used while standing or walking, and will not work at higher speeds (such as inside a moving vehicle). Yet other PCS operators may combine paging and data services with their voice offerings. This variety of service alternatives is in direct contrast to how the FCC implemented the initial cellular services. When the FCC first licensed "cellular," the service was foreseen only to support automotive telephone service. Licensees were required to support automotive telephony, using a specific analog radio technology called Advanced Mobile Phone System (AMPS). 1 -20 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 In essence, the FCC mandated compliance, not innovation. However, in today's competitive market, some incumbent cellular operators are not only providing generalized mobile telephony, but are innovating to provide "personal- service" alternatives (such as those promised by the new PCS licensees). In the final analysis, customers will not be able to clearly distinguish cellular providers from PCS providers, based solely on the services offered. Very shortly, both types of providers will have a new, wide range of services that can meet a new set of customer applications. 1 -20.2 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 KEY POINTS OF PCS LICENSING Public Licensed Networks Private Unlicensed Networks Voice, Data, Paging Automotive or Pedestrian Mobility, or Fixed- Antenna 30452 Let's summarize the key points of PCS licensing. 1996 The FCC is currently mandating open competition for wireless services. To meet this goal, they have established very flexible rules and will allow up to six licensed PCS operators per territory to provide any service they think may be profitable: voice, data and paging services will all be provided. In addition, manufacturers may market unlicensed products (using a special band of radio frequencies) for corporate and personal use. Generally, such products may only be used on private property. Customers will also face a greater selection of service options: some will purchase traditional mobile cellular services, while other subscribers will pay less for pedestrian mobility. Yet others will be served by fixed antennas, connected to wired, in- building communications systems. Both large and small companies will be licensed and free to innovate to meet customer demands with new technologies and services. 1 -21 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 POSSIBLE SERVICE STRATEGIES Nationwide Cellular /PCS Dual -band Nationwide PCS Single -band Local or Regional Low -cost Service Voice Services bundled with Paging or Data Any of the above with in- building free calling 30453 U a vim Customers will face a large number of choices, and they are likely to be confused by the large number of players and the overwhelming set of wireless offerings, all called "PCS." As we've seen, even though a service may appear similar to the user, there are significant differences in the services themselves (as well as how they will be offered). Fortunately, we do have a level of confidence as to what the leading, near -term packages of PCS services will be. Next, we'll look at some of today's leading players, and review their plans for the near future. 1 -22 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 ter- x911. : r; A major player in the U.S. Wireless market is AT &T Wireless, formerly known as McCaw Cellular. AT &T has supplemented their cellular licenses with PCS licenses, with the goal of creating a nearly- nationwide automotive cellular network. Their stated objective is to build a network within which a subscriber can use a single handset, and travel freely between AT &T's cellular operations and AT &T's PCS operations without any noticeable difference in service between the two types of networks. At the end of the month, the subscriber will receive a single bill for the total minutes used (not a separate bill for cellular minutes and PCS minutes). In our illustration, we see the 51 Major Trading Areas where the FCC auctioned large PCS licenses. The FCC refused to let AT &T bid for PCS licenses in the territories where AT &T was already a provider of cellular service. Why? The FCC wanted to avoid concentrating- too much power in the hands of a single player. However, AT &T was the high bidder for licenses in 21 of the remaining Major Trading Areas, bidding 1.7 billion dollars in pursuit of their goal of providing the largest area of coverage possible. The AT &T Wireless handset can operate in some cities as a digital cellular phone (at cellular frequencies), while in other cities the same handset will function as a digital PCS phone (using the PCS frequencies). In still other cities (where AT &T does not own its own wireless network), the handset may operate as a traditional roaming analog cellular phone. The technical name for this flexible handset is "Dual -mode, Dual- band," which refers to its ability to operate as either an analog or digital handset, using either the cellular frequency band or the PCS frequency band. 1 -23 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 A consortium (comprised of several Regional Bell Operating companies along with a cellular operator, AirTouch) seems to be pursuing a strategy similar to AT &T Wireless: using PCS licenses to supplement existing cellular territories to provide a seamless, nationwide automotive cellular network: This consortium has named itself "Primeco Personal Communications." The Regional Bells in Primeco were forbidden from bidding in 25 of the Major Trading Area territories because they were already providers of cellular services in these areas; as in the case of AT &T Wireless, the FCC wanted to avoid concentrating too much power in the hands of a single entity. But the consortium was the high bidder for licenses in 11 of the remaining Major Trading Areas, spending 1.1 billion dollars. Primeco has announced they will be selling two brands of cellular service: a premium service named "PowerBand," and a lower - priced service named "Talk Along." We expect the consortium to provide its subscribers with a dual -band, dual -mode handset. Subscribers may be told that they may use this handset anywhere in the continental U.S. or Hawaii, and almost never be hit with roaming charges. The plans of AT &T Wireless and Primeco Personal Communications differ in one respect, however: AT &T Wireless has chosen a TDMA technology for both their cellular and PCS territories, and Primeco Personal Communications has chosen to use CDMA. 1 -24 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 NYNEX, BELL ATLANTIC, U S WEST, AIRTOUCH CONSORTIUM attle } Spoksm Bosto Portland Mtn l ew Detroit San ncisco gr'"' Mot ' BPhil so Lialte City Omaha ._ Kansa City, St is nnstl ;! Wichita I Ville Los 1 a _ _ Tulsa 'Nashville,.. Otte Peso a klahoma' j Rork ph, nhr mphi Atlanta Puerto Rico Ing O a t. Honolulu Guam American REGIONS WHERE BIDDER: lV % B Has Winning Bid onAlaskaPCSLicense Is ineligible for PCS MTA License due their own n 30 A C '+ J current cellular operations L17`g °J9=5• No Cellular or PCS Licences A consortium (comprised of several Regional Bell Operating companies along with a cellular operator, AirTouch) seems to be pursuing a strategy similar to AT &T Wireless: using PCS licenses to supplement existing cellular territories to provide a seamless, nationwide automotive cellular network: This consortium has named itself "Primeco Personal Communications." The Regional Bells in Primeco were forbidden from bidding in 25 of the Major Trading Area territories because they were already providers of cellular services in these areas; as in the case of AT &T Wireless, the FCC wanted to avoid concentrating too much power in the hands of a single entity. But the consortium was the high bidder for licenses in 11 of the remaining Major Trading Areas, spending 1.1 billion dollars. Primeco has announced they will be selling two brands of cellular service: a premium service named "PowerBand," and a lower - priced service named "Talk Along." We expect the consortium to provide its subscribers with a dual -band, dual -mode handset. Subscribers may be told that they may use this handset anywhere in the continental U.S. or Hawaii, and almost never be hit with roaming charges. The plans of AT &T Wireless and Primeco Personal Communications differ in one respect, however: AT &T Wireless has chosen a TDMA technology for both their cellular and PCS territories, and Primeco Personal Communications has chosen to use CDMA. 1 -24 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 0 SPRINT SPECTRUM Guam — American Samoa 30456 y - will be spun off and replaced with PCS licenses No Cellular or PCS Licences ws Sprint Spectrum is another nationwide wireless player: they, too, wish to provide a nationwide wireless service, but may eventually choose to employ a lower -cost, single -band, single -mode handset. Sprint has teamed with three cable operators: TCI, Comcast, and Cox Cable. This venture has acquired licenses (or partnered with license winners) in a majority of the 51 Major Trading Areas, at a cost of 2.1 billion dollars. Because Sprint has spun -off its cellular properties into a separate company 360 Communications), it is free to partner with PCS operators in the regions where it was formerly a cellular operator. Note that this "nearly- nationwide" coverage (using Sprint and its partner's networks) is accomplished without using any traditional cellular frequencies. Therefore, Sprint may eventually decide to offer wireless service using a single -mode, single -band handset. Subscribers would be encouraged to use this low -cost handset anywhere in the country, again rarely or never incurring roaming charges. It is expected that Sprint and its cable partners will market its wireless service, packaged with cable services and wired local and long- distance telecommunications, at a discount. 1 -25 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 LOW TIER SCENARIO CORDLESS BASED low 4/ R 1 r 1 1 J. 00 S o_'00 MIA Far .+nt::t'• •..., i i- .. h. ;::1'.Y •s r1" h`. Tr, yS"r2,:. Many companies are taking a different route in the competitive environment. By stressing a local or regional brand name (such as GTE or BellSouth), packaging wireless service with local, wired telecommunications services, or providing low -cost, low - mobility services, competitors may offer a service or suite of services which effectively compete with a nationwide offering. There may be some very creative offerings in the future. For example, one strategy for a wireless operator might be to team with the manufacturer of in- building, unlicensed PCS equipment. The operator would provide a single dual -mode handset to all employees at a particular site. When the employee is inside the building, the handset would operate as a "cordless" business phone (using the corporate PBX), and would have no per - minute charges associated with its use. When outside the building, the handset would operate as a public cellular or PCS phone. It's possible the employees might also be allowed to take the phone home and use it as a business extension at home. 1 -26 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 LEADING ALTERNATIVE PCS TECHNOLOGIES One Based on U.S. Cellular TDMA Systems Another Based on U.S. Cellular CDMA Systems A Third Based on European Cellular TDMA Systems (GSM) 30458 m, ° One final point on the competition between PCS service providers. All PCS service providers are free to choose whatever radio technology they wish for their PCS networks, and leading winners of licenses have chosen several different technologies. AT &T Wireless has chosen one design, a modification of the U.S. TDMA digital cellular system. Primeco Personal Communications and Sprint have chosen another design, derived from the U.S. CDMA digital cellular standard. And many smaller PCS service providers have chosen a third system, based on the Global System for Mobiles standard. So, unfortunately, roaming from one PCS network to another (which may use a completely different technology) will be difficult, if not impossible. 1 -27 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. . Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 TOPICS l E • " 6 tri S'. u F .a .. l.. h .. C !• a. tr. v r a „ C; i..r Paging 30459 We are all familiar with paging's traditional application: contacting an individual away from the office. Initial paging systems were very simple. The pager would respond to a radio signal and would either beep or buzz the subscriber. This alerted the user to call an 800 number to determine who had paged them. Most modern pagers have numeric or alphanumeric displays, and a short message or telephone number can be relayed through the paging network to the pager itself. Note that both cellular services and paging services address a similar need: they serve a subscriber who needs to stay in touch while away from the office. And in a sense, both services offer voice service: cellular offers immediate voice communications, as does paging ... but only after the subscriber finds a telephone! 1 -28 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 The paging signals which set off a subscriber's pager originate from a transmitting antenna, usually located on top of a tall building or tower in a city center. If a subscriber purchases local paging coverage, then this single antenna originates each page. However, if a subscriber purchases regional (or even national coverage), then multiple towers in numerous cities retransmit the page, with near - simultaneous messaging. Some networks even use satellites to broadcast a paging message nationally to towers in hundreds of cities simultaneously. 1 -29 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 Since paging has been used, a persistent question that has haunted the originator of a page has been whether or not the recipient has actually received the page. Fortunately, advancements in technology have made two -way paging a reality. Two -way paging supports a response from the paged party, so the originator KNOWS the page was received. Through an auction process, many providers have acquired two -way paging licenses. Two -way pagers have small transmitters as well as receivers, and software that stores a number of possible responses to an incoming message. Let's say an executive assistant needs to ask his supervisor whether she can move a meeting to noon. The assistant sends the page, which travels from tower to tower through the paging network to the executive's pager. She checks her pager, and responds with an "OK" message. This answer then returns back through the paging network and is stored in a database. Within a few minutes the assistant can query the database to get the ,answer to his question. Some systems even allow the executive's response to trigger another page, which shows up on the assistant's pager, giving him the answer to his question. Paging. services are increasing their data- communications capacity to enable entirely new applications. For example, a popular application among sports fans is a season subscription to live, play -by -play reports of their favorite baseball or football team, sent directly to their pagers. With the ability to send thousands of .bytes of information, mobile subscribers may even retrieve short voice mail clips through paging services. 1 -30 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 TOPICS V . t CF Wireless Data 30462 Our next and final topic is Wireless Data applications and services. 1-31 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872-4736 WIRELESS DATA APPLICATION Vertical Industry Examples Technical Field Support Express Delivery Horizontal Industry. Examples Electronic Mail General Database Query 30463 Tk 019% Wireless data applications tend to fall into two distinct categories, which describe the markets which the applications serve: "horizontal" and "vertical." A vertical application serves a specific industry or industry segment (or even a single company!) within a market. This industry may have a unique need which can be met by a wireless data application of some sort. If a business case can be made that the increase in productivity that a group of employees would gain from this wireless application (in light of the expenses associated with developing and deploying the application), the application may well be cost justified. A horizontal application is one that is useful to a large number of mobile personnel, spread across many industries. Examples include wireless electronic mail or remote database queries from sales personnel at customer locations. Vertical industry applications have developed rather rapidly, because the increase in productivity or customer satisfaction has easily cost - justified their deployment. Horizontal applications have generally been slower to develop, because it is often difficult to estimate productivity gains for larger groups. 1 -32 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - !8001 872 -4736 FLEET MESSAGING FOR DELIVERY, DISPATCH, ETC. Example: UNITED PARCEL SERVICE (UPS) 60 T .... DC UPS Database United Parcel Service Packages scanned at each point en route Can track and trace packages for customers Gives early information for UPS for scheduling delivery resources, e.g., trucks, drivers, etc. One example of a vertical market application is fleet messaging. 01995 Our illustration uses United Parcel Service (UPS) as an example. UPS has equipped their delivery personnel with an electronic clipboard and provided delivery trucks with wireless data transmission equipment. When a driver picks up a package, the destination zip code is entered into the clipboard. Once back on the delivery van, the driver can use the wireless network to upload the shipping information to the local shipping center. UPS claims their wireless data tracking system allows them to begin planning their daily delivery route for packages ... before the packages have even arrived at the shipping center! 1 -33 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 APPLICATION EXAMPLE: FIELD PERSONNEL SUPPORT Customer Site 30465 Corporate Campus Another vertical application is technical support for field personnel. IRk 01995 For example, in the mid -'80s, IBM automated their field service personnel. Each was given a hand -held wireless data transmitter/ receiver. Service personnel can report problems, query databases, close out trouble tickets, calculate repair charges, and pick up their next job from the dispatcher ... all without using a customer's facilities or searching for a pay phone. 1 -34 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 APPLICATION EXAMPLE: THE CAR RENTAL INDUSTRY ACE CAR RETURN 6G v Corporate Headquarters I'- e 30466 Another vertical application appears in the car - rental industry. In order to accelerate returns at rental- centers at airports, agencies have equipped employees with belt - mounted radio transmitters. These transmitters can "wirelessly" query corporate computers for a copy of rental charges, in order to decrease the time a customer has to wait. 1 -35 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 APPLICATION EXAMPLE: COCA -COLA VENDING MACHINES Vending Machine 30467 Distributor 0,995 Yet another example of a vertical application is a plan to equip Coca -Cola vending machines with wireless data transmitters. These transmitters can report when a machine is out of a certain type of beverage or request the machine's coin box be emptied. 1 -36 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 APPLICATION EXAMPLE: AUTOMOBILE INSURANCE CLAIM INVESTIGATORS r- Claims n o- Adjustor Insurance kRepair Company ger, 3o4s$ Body Shop elm Our final example of vertical applications illustrates insurance claims investigators. While on the road investigating a crash site, an adjustor can communicate with the corporate mainframe computer to develop a claim estimate. Each of these vertical applications are similar in that a package of hardware, software, and wireless services were assembled to solve a single problem for a large number of employees. The benefits of any of these solutions can be quantified rather easily and presented to the corporate financial planners for approval. Vertical applications carry an interesting advantage for the service provider as well as the user: a customer who has worked closely with a provider to design and deploy a vertical wireless data application tends to stay with their chosen carrier for a long time! We've discusses several vertical applications, but where are the horizontal applications? As we mentioned earlier, horizontal markets are harder to justify financially. how much does it save your company if you pick up your electronic mail at the airport, rather than when you get home to your desk? As a result, other than some wireless electronic mail systems, there are not as many horizontal applications in use as vertical applications. 1 -37 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 EXAMPLES 30469 Diggs Equipping a cellular subscriber to use a wireless data network is not as complicated as it may appear to be. For example, a cellular phone equipped with a modem port, a cellular modem card, and a cable can provide basic wireless data capability. By connecting a laptop computer to the cellular modem via the cable, the laptop computer can access and use the wireless data network. Alternatively, there are PC cards with antennas that can transmit directly from the card to a neighboring wireless data operator's antenna. There is also a new set of devices, called "Personal Digital Assistants" and "Personal Intelligent Communicators." These handheld devices come in a variety of designs, many with wireless data capability built in to the unit. 1 -38 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 1800) 872 -4736 WIRELESS DATA ACCESS NETWORKS Cellular PCS Two -way Paging Wireless Packet Data 30470 mi996 There are several wireless network service providers competing for the attention of wireless data subscribers. Both cellular and PCS service providers offer data service as a supplement to their voice business. Some paging service providers can also support the two -way exchange of short data messages. Finally, there is a category of service providers who offer data -only wireless services. 1 -39 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - 18001 872 -4736 i CELLULAR MODEMS Laptop with Analog Cellular Cellular Modem Handset C6HQ V N.etwork 30471 01995 Traditionally, cellular networks have supported wireless data services by using modems. The process is similar to using a modem on a wired telephone call: a call is established to the destination, then the voiceband is used by the modem to transmit digital information rather than speech. The caller is billed the normal charges for a cellular call. As we've discussed, many cellular systems are migrating towards digital service. Using a digital network for wireless data requires a subscriber to use a card which processes the subscriber's data, codes it with overhead for transmission, and transmits the information as a digital signal on the transmission channel. When these services mature, they are expected to allow more reliable data transmission than cellular modems using analog channels. 1 -40 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — (800) 872 -4736 WIRELESS DATA: CIRCUIT SWITCHING DEDICATED RADIO CHANNELS ONE USER PER RADIO CHANNEL GG , y . User 1 per, User ea N -t) Do4 Dod G6 DC User D 4 N 30412 0,995 The greatest strength which the traditional cellular network offers wireless data applications is its widespread coverage. Cellular service is available almost everywhere in the United States, so a subscriber can have confidence they will have wireless data service in cities, suburbs, and along a remote highway. For example, for the United Parcel Service application we discussed earlier, UPS chose to use cellular service for their data application. Why? Because of cellular's wide coverage. However, there is a significant disadvantage to using cellular modems for wireless data: the cost. A user must pay regular cellular rates for the entire duration of the call, even during those periods when no data is being transmitted (such as during an interactive session, where there may be periods of delay). For example, in a normal database query using a cellular modem, there are periods of time where no data is transmitted by either the client nor the host computer ... but the customer still pays for the airtime (whether information is transmitted or not). 1 -41 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 WIRELESS DATA: PACKET SWITCHING SHARED RADIO CHANNELS MULTIPLE USERS PER RADIO CHANNEL Adfth GG v User 1 30473 rQ4 Dod Dod DoG m1M An alternate, less - costly method of transmitting bursts of wireless data is to use a technique known as "packet switching." A single channel in the airwaves is made available for multiple users, who take turns transmitting their data in small amounts, known as "packets." This technique allows the relatively high cost of the channel to be shared between multiple data users. Known as Cellular Digital Packet Data (CDPD), this technology is being offered by many cellular operators to their subscribers. CDPD's advantage of lower cost for some applications is offset by its limited availability. CDPD is currently not universally available. 1 -42 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 r TWO -WAY MESSAGING AND DATA NETWORKS EXAMPLES: ARDIS AND RAM ARDIS = Advanced (nationwide) Radio Data Information Service Introduced in 1984 only for IBM Field Engineers Joint venture between Motorola and IBM formed in. 1990 to offer a commercial service; Motorola acquisition of full ownership was agreed in July, 1994 Now focusing on "Vertical" Markets with customers including: Otis Elevator, NCR, AVIS, Sears, etc., but is also available to the public for general purpose E -Mail RAM Mobile Data Joint venture between BellSouth and RAM Broadcasting Corp. formed in 1992 with technology and equipment from Ericsson Focusing on the "Horizontal" Market of E -Mail for mobile business customers; also selling to Vertical Markets 30474 • Short round -trip response times (less than 10 seconds typically for automatic responses to short messages) 01945 Two competing service providers, ARDIS and RAM, offer only wireless packet data services. ARDIS is a network originally created by IBM (in partnership with Motorola) to serve their field service application. ARDIS currently owns wireless packet data transmitters in hundreds of cities, supporting thousands of subscribers with vertical applications. With thousands of subscribers sending short bursts of traffic in shared-packet channels, this service costs much less than a comparable cellular -modem service. RAM, a joint venture of BellSouth and RAM Broadcasting, has a similar two -way packet data network, serving hundreds of cities. Which technology a customer should use is based on both a customer's application as well as their geographic location. Subscribers who need universal coverage, or who send long uninterrupted streams of data, may find it more advantageous to use cellular modems. Examples would include large file transfers, electronic mail downloads, and large database updates. However, a subscriber who travels exclusively within areas where a packet service is offered, and who sends short bursts of traffic (such as repeated, short database queries), will save money with a packet data service. 1 -43 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates — 505 W. Bertrand — St. Marys, KS 66536 — 18001 872 -4736 SUMMARY 9 Cellular - A Strong Incumbent PCS - Lots of New Competitors Paging - New, Expanded Services Wireless Data - Vertical Applications 30475 This completes our session on wireless communications. 0,995 We've covered quite a bit. We reviewed the architecture of a traditional cellular telephone network and briefly discussed how it operates. We discussed how the cellular industry evolved, and the nature of its current business. Next, we discussed PCS, and how early providers of PCS will, in many cases, be the cellular service providers of today. But, the FCC promises to open the wireless marketplace to a very large number of players ... each of which is currently laying plans for their own wireless services and coverage area. We then discussed the history and status of paging services. We also discussed wireless data applications, as well as the current service providers and the technologies they are using. There's a great deal of change occurring today in wireless communications, and we hope this presentation has helped you understand some of the dynamics involved. From both a technical and applications viewpoint, many providers of wireless services have some serious choices to make concerning which markets they'll serve, what services they intend to provide, and how such services will be effectively priced in the highly- competitive marketplace of tomorrow. If you'd like more information on wireless communications, TRA's other video training sessions, our computer - based training aids, or any of our instructor -led courses, please contact us at 1- 800 - 872 -4736 or via the Internet at www.tra.com. 1 -44 TRA Proprietary and Restricted. Not to be copied or disclosed without written permission. Telecommunications Research Associates - 505 W. Bertrand - St. Marys, KS 66536 - (800) 872 -4736 t 249 . CO MEL-fu n s Glossary of Terms and Acronyms ARDIS (Advanced Nationwide Radio Data Information Service) A packet- switched, mobile data, radio network, originally developed by Motorola for IBM's field service personnel. Established as a commercial service in 1990, by a partnership between IBM and Motorola; but in 1994 IBM sold its interest back to Motorola. Motorola is currently the sole owner and has implemented a network improvement program to upgrade the top thirty metropolitan markets from 4.8 to 19.2 Kb /s data throughput. Please compare with competitor, RAM Mobile Data. BTA (Basic Trading Area) Areas of economic integration, as documented in Rand McNally's Commercial Atlas and Marketing Guide (1- 800 - 284 - 6565). The U.S. and its territories are divided into 492 areas, called BTAs, which are based on Rand McNally's analysis. (Note: the FCC modified Rand McNally's proposed 487 BTAs to 492, to include Alaska, Puerto Rico and several other areas.) A BTA consists of a number of counties that remain whole and are never split between BTAs. For example, the Chicago BTA consists of fourteen counties including Kenosha County in Wisconsin and four counties in Indiana. Each BTA belongs to a Major Trading Area (MTA). For instance, the Chicago BTA along with seventeen other BTAs make up the Chicago MTA. PCS Licenses will be granted in each BTA for one of the 30 MHz licenses (C) and the three 10 MHz licenses (D, E, and F). CAP (Competitive Access Provider) A communications company whose primary business is selling point -to -point private -line service, typically for business customer access to an Interexchange carrier, or for interexchange carrier connection of two Points -of- Presence within the same city. Since most CAPs are considering expanding into switched services, they prefer to be named Alternative Local Exchange Carriers (A- LECs), Competitive Local Exchange Carriers (C- LECs), or simply Local Exchange Carriers (LECs). The largest CAPs are Teleport Communications Group and Metropolitan Fiber Systems CDPD (Cellular Digital- Packet Data) A packet - switched, mobile data, radio technique, using the idle channels that should be available in a well- engineered cellular system. Transmits packets of data at 19.2 Kb /s, across idle 30 -KHz cellular channels without disrupting voice traffic, denying the use of a channel to a voice call, or requiring additional bandwidth. CDPD shares bandwidth with cellular voice traffic. The channel is occupied just for the time it takes to send packets of data. If the channel is subsequently required for voice, the CDPD transmission will "hop" to another vacant channel. Based on IBM's engineering techniques. cell 1) In Radio systems, the geographical region covered by single cellular or PCS base station. A CGSA (Cellular Geographic Serving Area) is typically subdivided into clusters of cells where each cell uses a different set of frequencies to minimize interference. 2 -3 Copyright 9 1996, TRA All rights reservetl 2) In ATM, the standard 53 -byte packet, into which information is segmented for transmission using ATM. The ATM Cell has a 5 -byte header and contains 48 bytes of payload. 3) In cellular television, the geographic area served by a single transmitter. In addition to transmitting the video signal to subscribers (who receive the signal through a 4.5 inch Flat Panel Phased Array Antenna), each transmitter uses point -to -point microwave links to repeat the signal to adjacent cells. cellular A mobile telephone system developed by Bell Laboratories that divides geographic areas into cells. In each cell, low- powered radio equipment is.placed so the same frequencies can be reused in nearby cells without interference. Previously, call capacity was severely limited because each telephone call in a city required a separate frequency. Cities used a single powerful radio transmitter / receiver for mobile telephone service. Data services are beginning to make use of cellular technologies, though services are not yet widespread. As PCS is deployed, it is expected to make large use of cellular services. circuit switch A method widely employed by telcos to allow for a temporary dedicated path of constant bandwidth between two endpoints over a wide area. Main use is normal voice calls.. Users normally pay for a circuit - switched connection (also known as a circuit - switched call) on a usage- sensitive basis (x cents /minute). Examples of circuit - switched services include: Plain Old Telephone Service (POTS); Long Distance Service; Virtual Private Networks; 800, 900 and 950 calls; Switched 56, 64 and 384 Kb /s calls. FCC (Federal Communications Commission) The U.S. federal regulatory agency responsible for the regulation of interstate and international communications by radio, television, wire, satellite and cable. Established by the Communications Act of 1934, it is responsible directly to Congress and is directed by five Commissioners appointed by the President and confirmed by the Senate for 5- year terms. The President designates one of the Commissioners to serve as Chairman. The Chairman's tenure is at the pleasure of the President. No more than three Commissioners may be members of the same political party. None can have a financial interest in any Commission- related business. GSM (Global System for Mobile Communications) The pan- European Digital Cellular Radio Standard (based on TDMA -8) in the 900 MHz band. Formerly called Group Special Mobile after the standards committee that developed it, and was re -named after the standard was adopted. handoff In cellular radio systems, such as AMPS, GSM, and PCS, the process of switching a mobile unit from its current channel to a new channel which can be used in the new cell it is entering. 2 -4 Copyright 0 1996. TRA All fights reserved Takes place during a call, and requires coordination between the base stations in each cell and the mobile unit. Together, the new channel which should be used as well as the time at which handoff should occur are identified. In FDMA and TDMA systems the new channel is usually at a different frequency than the current channel and handoffs are necessary to allow frequency reuse. In CDMA systems the frequency will not change at handoff if the handoff in the new cell is to a CDMA carrier at the same frequency. In this case the handoff just allows the mobile unit to communicate with the new base station with which it has a stronger signal. For handoffs on the same carrier frequency, CDMA systems will typically use soft handoff. If the CDMA handoff is to a CDMA carrier at a different frequency, then a hard handoff is required. In some countries, the handoff process is called handover. High -Tier PCS A PCS for users moving in a high -speed automobile. High -Tier PCS systems are often straightforward evolutions of current digital cellular systems. IEC (Interexchange Carver) A long distance company such as AT&T, MCI, Sprint, or hundreds of smaller companies. IXC (Interexchange Carrier) See IEC. LEC (Local Exchange Carrier) Originally, the company franchised under the auspices of the state Public Utilities Commission as the sole provider of local telephone service within a specific geographic area. Includes both BOCs, owned by RBOCs, and independent telephone companies such as Southern New England Telephone (SNET), Cincinnati Bell, GTE ( Contel), United, Centel, Rochester Telephone, Wamego Telephone, and hundreds. of others. Less - frequently known as Local Exchange Company. This is the last aspect of regulated monopolies in the telephone industry and is currently in the process of changing to a competitive environment. Low -Tier PCS A PCS for pedestrians or slow moving vehicles (no more than 30 to 40 mph). An evolution of cordless systems originally intended for in- building applications. Systems use small cells, so they can be designed with low -power transmitters and experience fewer handoffs than High -Tier PCS systems (with high - speed, mobile users). Systems provide lower cost and higher quality services, for low speed users only. modulation The process of impressing an information signal on a carrier signal. It changes either the amplitude, frequency, or phase (or some combination of these) of a carrier signal wave in a way that represents the original signal. For analog transmission the carrier signal is changed continuously to represent the continuous change of the information 2 -5 Copyright C 1996, TRA All rights reserved signal. For digital transmission the carrier can assume a set of discrete values each of which represent a digital code word. MTA (Major Trading Area) An area of economic integration identified and documented by Rand McNally's Commercial Atlas and Marketing Guide (1- 800 - 284 - 6565). The U.S. and its territories are divided into 51 MTAs. The FCC modified Rand McNally's proposed 47 MTAs to 51 to handle Alaska, Puerto Rico, etc. An MTA, in turn, consists of an integral number of Basic Trading Areas (BTAs), but BTAs are never split between MTAs. For example, the Chicago MTA consists of 18 BTAs and 84 counties (including the Chicago BTA), such as, Rockford BTA, Springfield BTA, Ft. Wayne BTA, etc. Milwaukee is another MTA. packet switched The process of forwarding variable- length protocol data units based on information contained in the header of the PDU. Takes advantage of the bursty nature of most data applications, and facilitates statistical sharing of physical transmission resources. Usually used in the context of connection - oriented data transfer in which case the packets are forwarded based on a unique connection identifier contained in the packet header. The classic example of data transfer using a packet - switched approach is an X.25 network. page 1) Generally, the activity or process of summoning or calling a person, usually by name. Modem usage in this context implies attempting to locate an individual using any of a number of devices, known as pagers. 2) In traditional communication media, a single discrete sheet or leaf of paper, as in a book, newspaper, magazine, or letter. 3) In multimedia, a discrete document, which can be displayed singly or along with other such documents. Usually interconnected to other media elements or documents, either via hypertext or other devices which act as navigational aids. Examples include Internet Home Pages or the pages of many multimedia titles. PCS (Personal Communications Service) A broad range of wireless and wired communications services that enable communications with persons, in any location. Personal Communications System refers to the hardware and software that provide Personal Communications capabilities. PDA (Personal Digital Assistant) A small, hand -held computing device that typically combines pen input, handwriting recognition, personal organization tools, and may contain mobile communications capabilities in one package. The ideal PDA enables the user to take notes, keep a calendar, schedule appointments, and send and receive data (text, voice, video), fax, and E -Mail messages. It also gives users access to on -line services, which allow collection of information (from corporate and personal databases) and electronic transactions (such as shopping, travel, and banking transactions). 2 -6 Copyright ® 19%. TRA All rights reserved urns PDU (Protocol Data Unit) In data communication protocols, a unit of data created by a given protocol layer at one place and logically transferred to the same layer at another place. PIC Personal Intelligent Communicator (personal communicator) A PDA that is oriented towards communications. RAM Mobile Data A mobile data, packet - switched radio network which is a joint venture of RAM Broadcasting Corporation and BellSouth Enterprises. It uses public networking technology known as Mobitex (developed by Ericsson) - featuring 8 Kb /s radio modems. The RAM target market is individual personal computer users-focused on messaging applications. Please refer to: ARDIS RBOC (Regional Bell Operating Company) The seven holding companies that operate and manage the 22 BOCs created as a result of the MFJ between AT&T and the U.S. Department of Justice in 1982. Distributed regionally, they include Pacific Telesis, U S WEST, SBC Communications Inc., BellSouth, Bell Atlantic, Ameritech, and NYNEX. Sometimes referred to as RHCs. RF (Radio Frequency) The range of frequencies in the electromagnetic spectrum from 3 KHz to 300 GHz. roaming A cellular subscribers use of a cellular network other than their home network. Requires registration in the visited network. Visited network applies incremental roaming charges. Agreements exist between cellular service providers such that roaming throughout the United States is now possible. smart card A small device (the size of a credit card) containing a microcomputer with enough memory and capabilities to enhance communications services and / or support other transactions for the holder. Examples include: 1) In certain implementations of PCS, used to facilitate the registration of users with the network and the use of multiple handsets. For example, GSM digital cellular incorporates a smart card, which they call a SIM -(Subscriber Identity Module) card. 2) In Automatic Teller Machines, used to enhance banking transactions and provide additional security (such as cryptographic functions). 3) In Personal Identification, used in some- applications to contain pertinent medical facts, employee history, or insurance coverage information. TDMA (Time Division Multiple Access) A technique for multiplexing multiple users (calls) into what would otherwise support only a single channel on a single radio carrier (RF), by splitting the carrier into time slots; 2 -7 Copyright 0 19% TRA. All rights reserved thereby, supporting multiple channels. Mobile stations sharing this carrier must take turns accessing the carrier, each in their own time slot. IS -54 /IS -136 TDMA divides a carrier frequency into six time slots. Initial full -rate vocoders require two time slots per user and thus support three users on each carrier frequency. This is called TDMA -3. Future half -rate vocoders will require only one time slot per user and support six users per carrier frequency, yielding TDMA -6. wireless Equipment, service or technology for transporting information without wires, but rather through the airways using radio or microwave technology. 2 -8 Copyright O 1556 TRA All rights reserved mr