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WLL Field Trials and Implementations

Wireless Local Loop is a technology with more than just promises to offer—it has true and legitimate application. WLL is used in Sri Lanka, Ghana, Columbia, Indonesia, India, Spain, and other developing countries, where recent and strong commitments have been made toward the goal of universal service. In such an environment, speed of deployment is of great importance. Additionally, subscriber sparsity, unfriendly terrain, and difficult weather conditions often make the deployment of wired networks problematic.

Current and planned field trials and actual implementations are numerous, both in the United States and abroad. Of particular interest is the planned application of WLL by new entrants in the now competitive local service arena. In competition with the incumbent LECs, the new providers will have three alternative means of connecting to the user. First, they may lease local loop facilities from the LECs. While the terms and conditions under which this will take place have yet to be determined, they likely will not be pleasing to either party. Second, new wired local loops can be deployed. This approach likely will make sense only where there exists dense populations of significant business customers. Third, WLL networks can be implemented rapidly and and with relatively inexpensive ongoing operational costs.

Southwestern Bell (U.S.) currently is testing a Motorola system using low-power WLL in suburban areas. The system will provide the last 1,000 ft. or so of the local loop. Southwestern Bell expects to see cost savings of greater than 90%.

US West (U.S.) plans to test TDMA alternatives in rural areas, including those surrounding Billings, Montana; Taos, New Mexico, and Fort Collins, Colorado using equipment from SR Telecom. The company intended to have some level of infrastructure in place during the first half of 1996 and to expand coverage rapidly through 1997.

BellSouth (U.S.) plans to test (1996) a system it calls Wireless ISDN (WISDN), which it expects to reduce the cost of provisioning by 20%.

WinStar Telecommunications Group (U.S.) is offering broadband wireless service in 28 cities. Operating in the 38 GHz band, the system delivers service at distances up to five miles. It is intended for use in AAV and IXC bypass, as well as campus networking applications. The WinStar system also has potential for PCS applications. WinStar systems also have been in trial by Mercury Communications (UK) and Deutsche Telekom (Germany).

Ionica (UK) was formed in 1991 and granted a national license in 1993; investors include Telecom Finland, Yorkshire Electricity, Northern Electric, and Robert Fleming Investment Trust. The initial roll-out (1995) covered two regions and a population of up to 10 million; ultimately, the company expects to capture up to 5% of the local loop market with revenues up to £200 million. Ionica also is actively considering opportunities in Mexico and throughout Latin America.

Millicom International Cellular (Luxembourg) holds stakes in 24 cellular licenses and is highly profitable. Liberty Communications, its UK subsidiary, is positioning to gain a WLL license in the UK, with investment expected in the range of $200 million to provided two-way broadband WLL.

Telecom Finland plans a WLL network rollout in 1996. The company expects to take up to 30% of the market from the incumbent carrier over a period of five years and to reach profitability in three years.

Telekom Malaysia plans to increase its subscriber density from 11% to 25% by 2000, largely through WLL. Telekom Malaysia intends to support 40,000 subscribers by the end of 1995.

Grupo Iusacell (Mexico) operates cellular services in Mexico, with revenues of over $300 million. WLL plans include Mexico City, which was targeted for initial, limited deployment in 1995. The company expects to invest over $800 million for a national roll-out, once the incumbent carrier’s monopoly expires in 1996.

Bakrie Brothers Electronic Company (Indonesia) is planning to invest $80 million in a WLL network to be offered by its subsidiary, Ratelindo, in which the incumbent carrier has a 45% interest. More than 500,000 WLL lines were planned to be in service by yearend 1995.

Personal Communications Services (PCS)

Personal Communications Services (PCS) is the U.S. term for the Personal Communications Network (PCN) concept originally developed in the U.K. PCS is a service concept that is technology-dependent and that operates on a set of frequencies set aside for its purpose. PCS ultimately intends to provide a full range of enhanced services through a single device utilizing one telephone number, which will work anywhere and anytime, for life. The U.S. International Trade Commission estimates the U.S. PCS market will reach $30 to $40 billion by 2000 [12-29]—pretty optimistic for a technology-based service offering which is totally unavailable at the time of this writing! It is estimated that the buildout of the U.S. PCS networks will require capital investment of approximately $12 to $20 billion over the next decade [12-7] and [12-30]. Widespread PCS availability is expected in the 1998/1999 timeframe [12-31].


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