VIDEO SERVICE PROVIDERS BATTLE ON MULTIPLE FRONTS

DBS operators oppose sharing 12.2 to 12.7 GHz spectrum

Proponents think it's the third leg of a competitive video stool; opponents see it as a fifth wheel on a smoothly rolling broadband wagon. And that's just part of a spat over 12.2 to 12.7 GHz spectrum.

Multichannel video distribution and data service (MVDDS) providers Northpoint Technology and MDS America want to use the spectrum for one-way terrestrial wireless digital video and high-speed data. But Northpoint says MDS — the target of a Northpoint lawsuit for patent infringement — should not be allowed to play, while MDS thinks Northpoint is a hog.

The MVDDS providers agree on one item: Both want to compete with cable and direct broadcast satellite (DBS). “I'm talking about using a tower to create a network of high-speed digital receivers that would receive up to 300 digital TV channels and high-speed Internet,” said MDS President and CEO Kirk Kirkpatrick. “Right now, there are two competitors, cable TV and DirecTV or EchoStar. This allows a third competitor to come into the space.”

MDS and Northpoint are fighting DirecTV and Echo-Star, which claim MVDDS service would interfere with their signals.

But interference appears to be in the eye of the beholder. An FCC source who saw a DirecTV test expressed mixed feelings about the quality of a DirecTV picture with and without the presence of a Northpoint signal. “The simple-minded observer [saw] the DirecTV signal was as good as it was before,” he said.

But DirecTV reported that “background noise rose a little bit,” the FCC source said. During a thunderstorm, that interference could be exacerbated. “The big debate was how much interference was acceptable.”

To resolve the spectrum interference dispute, Congress tabbed Mitre Corp. to study the matter. In an effort to remain impartial, the FCC did not provide direction to Mitre, according to an FCC source. The resulting report is ambiguous enough that the MVDDS and DBS operators have claimed total victory. The FCC is expected to decide on the matter in the near future.

Specifically, the report states that Northpoint's proposed service would cause “significant interference” to the DBS operators but notes that mitigation techniques could “greatly reduce or eliminate” MVDDS interference.

“Does this cause interference or doesn't it? There's no simple answer,” said the FCC source.

Northpoint says there is a simple answer. “Mitre concluded that our technology is capable of sharing with DBS without causing harmful interference,” said Toni Bush, Northpoint's executive vice president.

Neither Northpoint nor MDS is believed to have much funding, which causes many to question whether they have the resources to bid for spectrum in an auction and market a one-way access technology.

Indeed, third competitors rarely succeed against giant entertainment providers, said Peter Jarich, an analyst for The Strategis Group. “The concept of going after multichannel television just seems to be a difficult one,” he said. “But hey, if they want to try….”