Wireless storms local loop: North Dakota battle has big implications

A battle that began two weeks ago in the tiny town of Regent, N.D., directly affects only about four people. But the outcome could set a major precedent with implications for thousands of people in rural areas across the U.S.

On Jan. 7, Western Wireless, operating as Cellular One, launched fixed wireless service in Regent. The service was hyped by the Cellular Telecommunications Industry Association as the first in the U.S. that would deliver all telephone services wirelessly and was kicked off with an inaugural call to FCC Chairman William Kennard. Four days later, Consolidated Telephone Cooperative, the local incumbent telco, cut off service for the service's four customers without notice by refusing interconnection.

At issue is whether a wireless operator must follow the same path as a wireline operator to offer competitive local service. North Dakota has a public convenience and necessity law that operators must follow to become competitive local exchange carriers. "Whether Western Wireless would fall under that or not, we don't know. There's nothing that says wireless operators have to do A, B, C," said Illona Jeffcoat-Sacco, director of North Dakota's public utility division.

"We did all we felt was necessary," said John Uhlmann, general manager of Western Wireless' North Dakota properties. Western Wireless believes it doesn't fall under the jurisdiction of the state because it operates spectrum governed by the FCC. Nonetheless, Uhlmann said Western Wireless was upfront during meetings with both the North Dakota Public Service Commission and CTC representatives about its intent to offer fixed wireless and believed those entities approved of those intentions.

In letters to Western Wireless CEO John Stanton and the North Dakota Public Service Commission, CTC CEO L. Dan Wilhelmson said he understood the 2000 phone numbers it issued to Western Wireless last year were to be used for mobile services, not fixed, competitive service. CTC officials also said the carrier believes Western Wireless is required to negotiate an interconnection agreement as a competitor, which it did not. CTC officials could not be reached for comment.

Western Wireless' struggle is typical of the difficult road over which wireless operators must travel, said Randy Coleman, vice president for regulatory policy and law at the CTIA. "It's a clear illustration of the kind of barriers thrown in front of a wireless company trying to do more," he said.

Western Wireless has filed a lawsuit against CTC, seeking damages and reinstatement of service.

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