Divided we stand

When it comes to the battle for third-generation spectrum — one of the biggest policy fights in Washington this year — the Cellular Telecommunications & Internet Association doesn't like dissenters. CTIA needs a united front as it tries to wrestle 3G spectrum away from the Defense Department.

So it was unsettling to CTIA CEO and President Thomas Wheeler when Qualcomm Chairman and CEO Irwin Jacobs challenged a letter CTIA sent last month to President Bush. The letter asked Bush to delay 3G spectrum auctions until the Commerce Department reviews the proposed 3G bands, which are heavily encumbered. Jacobs took exception to the sentences, “Both Europe and Japan are expected to deploy the next generation of high-speed wireless data [3G] services this year. America will not because America cannot.”

In fact, Jacobs said, CDMA operators Sprint PCS and Verizon Wireless will deploy 1XRTT technology this year, an International Telecommunication Union-accepted 3G standard.

“I am shocked, to put it kindly, that the CTIA would send a deliberately incorrect letter to the President of the U.S. even to gain an advantage in spectrum allocation for wireless communications,” Jacobs wrote Wheeler in an e-mail letter obtained by Telephony. “I would strongly urge you to send a statement of correction as soon as possible. That you are also doing serious commercial damage to a number of your members during this period of worldwide carrier decision-making is even further reason for rapid action.”

Wheeler, in a reply e-mail, called Jacobs' assertions “most grave.”

‘I am shocked the CTIA would send a deliberately incorrect letter to the President of the U.S. even to gain an advantage in spectrum allocation for wireless communications.’
— Irwin Jacobs, Chairman and CEO, Qualcomm

“I take very seriously your allegation that the leadership of CTIA and I signed a letter that was designed to deliberately mislead the President of the U.S.,” Wheeler wrote. “There is no higher priority at CTIA than securing new spectrum for wireless services. We intend to succeed in this effort honorably by continually providing the decision-makers with factual information on how the U.S. is behind the rest of the world in terms of spectrum allocation and how that reality will affect services…. I want to believe that we are both on the same side in support of the need for additional spectrum.”

But Jacobs said he would not have objected if CTIA simply noted that the U.S. is behind in spectrum allocation.

“Please tell me why ‘America will not because America cannot,’ or withdraw the statement,” Jacobs said.

A CTIA spokesman offered a noncommittal statement about the situation.

“We have told [Jacobs] that we understand and support his position that 1X is 3G and that we look forward to working together with him and others in the industry to get more spectrum for the deployment of such new technologies,” the spokesman said.

Qualcomm declined to comment.

Verizon Wireless, which has indicated it needs more spectrum for 3G services despite deploying 1X technology before the end of the year, also characterized the statement as inaccurate.

Bill Blessing, vice president of business development and strategy with Sprint PCS, said the letter was sent without discussion and without the support of all CTIA members.

“America will, and in advance of Japan or Europe, offer nationwide 3G networking capability,” he said.

Sprint PCS, which plans to offer 3G services late this year, also disagreed with CTIA on the spectrum-cap issue, believing it should be lifted more gradually.

Another CDMA operator, Leap Wireless, also disagreed.

“Mr. Wheeler's letter may represent the opinions and position of his board, but it does not represent the industry's nor Leap's,” said Dan Pegg, senior vice president of Leap.

In fact, Leap has become a thorn in CTIA's side. Leap has lawmakers arguing that if wireless carriers would make more efficient use of the spectrum they have, they wouldn't need any more. CTIA has been trying to squelch these fires.