The 220MHz systems: Too good to be true? A technology that offers multiple advantages and carries a very competitive price seems too good to be true. Yet, according to many involved, the development and success of the 220MHz industry is at hand.
When Richard Bell’s family acquired six 220MHz licenses on the advice of their attorney in 1994 and started developing them, they realized the opportunity in purchasing other licenses and start developing systems. This marked the beginning of a new industry, the 220MHz systems industry.
A little background The Federal Communications Commission (FCC) started giving licenses for 220MHz by lottery in 1992. This lottery was held so individuals could participate in the communications industry. Out off 6,000 possible 220MHz licenses, 4,200 were issued to people who did not have experience in developing systems. Immediately, a cellular owner in Atlantic City, NJ, brought a lawsuit because he believed he was not given enough time to allow him to participate. This lawsuit was not settled until 1994. Right after that, the FCC decided to establish a 90-day construction deadline.
By this time last year, 220MHz operators were struggling to have their systems fully constructed to meet the FCC’s deadline of April 4, 1995. They knew they weren’t going to be able to build out in that time frame because there was no available equipment, so they threatened to sue the FCC. As a result, the construction deadline was repeatedly pushed back. Finally, Dec. 31, 1995, was given as the final construction deadline, but the FCC shut down in December (along with the rest of the U.S. government). With the second Report and Order filed on Jan. 26, 1996, the final construction deadline was scheduled for March 11, 1996, unless a site needed to be modified, in which case, the deadline would be Aug. 15, 1996.
“By March 11 you either had to build in your original site, file the modification application or file a letter of intent to modify,” explained Ralph Perez, president of MacMillan Communications, a 220MHz systems construction company based in Davie, FL. “They [the FCC] also gave some general guidelines whether modification applications would be accepted or not. Basically, if you are in the top 50 markets, you can move your site within an 8km range and be within the regulations. If you are outside of the top 50 areas, you can move your repeater 25km and still be within. So, if you follow the guidelines that were put forth in the Jan. 26 second Report and Order, you should be fine.”
The regulatory side The regulatory uncertainty created by the FCC in the industry at the early stages of the licensing had an effect on licensees. The FCC failure to begin accepting modification applications caused licensees to wonder if they would be able to obtain permanent authority at sites where they have obtained Special Temporary Authority (STAs) to construct. Additionally, the FCC determined that licensees constructing at sites other than their licensed sites, pursuant to STAs, wouldn’t be considered to have been constructed if they couldn’t eventually obtain permanent authority at the new site. This regulatory uncertainty also had an effect on manufacturers, who didn’t aggressively pursue manufacturing the needed products.
“There has been a lot of progress in the last months,” said Bill Luckett, project engineer with Incom Communication, a system construction company based in Anaheim Hills, CA. “The Report and Order that came on Jan. 26 clarified many of the rules that were causing uncertainty in the industry and cleared up a lot of the questions. Now we are moving along to complete the rest of our constructions.” Additionally, said MacMillan’s Perez, the STAs are not issued anymore, now, just a modified application is needed, and all the ones that were filed as Jan. 26 are basically granted.
Other problems? In the beginning, it was thought that some potential problems, both technical and construction-related, would be arising as 220MHz systems started operations. However, operators and manufacturers were convinced that these problems could be solved. As of today, it seems that operators and manufacturers were right, and no major problems have stopped the development and success of this young industry.
According to Incom’s Luckett, they have not experienced any problems with equipment, and they have been able to construct and operate their systems with no major setbacks. He mentioned that with additional filtering in the equipment, they have been able to eliminate any noise and co-channel interference. MacMillan’s Perez said “If the engineering is done correctly on the site, you shouldn’t have problems when you install it [your system].”
The market End users of 220MHz services are people in the dispatch market who use point-to-point, mobile-to-mobile and mobile-to-office type of communications. “Our users are any service-oriented type of business such as construction companies, courier services, public safety and highway patrols,” said Pam Baker, national sales manager for Incom Communications. “Basically, we can provide better service than some of our competitors in other frequency bands due to the nature of the 220MHz frequency itself, and the way it travels, so to speak, covering wider areas. They [the users] are not paying for something that they are not using. We can provide them with a simple dispatch system that can give them what they want, which is wider coverage and privacy.”
Applications As a low frequency, 220MHz presents many advantages such as in-building use, as well as outside use. It has better propagation than 800MHz and 900MHz in heavily wooded areas and over undulating terrain.MacMillan’s president, Perez, mentioned an unusual application for 200MHz service: a hospital robot that delivers food and items from room to room. “This little robot needed to communicate with the elevator, so he could get inside and go from floor to floor. The company which provides those robots came to see us about putting a 220MHz radio on the robot, and a 220MHz radio on the control panel of the elevator, so they could communicate. One of the reasons they wanted this type of equipment is because 220MHz works better inside buildings and behind concrete than 800MHz or 900MHz.”
Ron Domres, Incom Communication’s president, explained that there will be a significant need for point-of-sale data in the future. He mentioned that Incom is already working with some users that work primarily with data, supplying them with a radio that provides voice as well as data. In addition, Incom is providing them with mobile data terminals and customized software programs written specifically for their industries. The result is that the end user who is driving a vehicle can take credit cards and ATM cards instead of having to carry cash. End users can easily communicate from their vehicle via the computer and use different types of peripherals such as printers.
Success of 220MHz systems A technology that can make radio communications more transparent, that can improve response time, achieve excellent production from available resources and still be affordable, has to be a success, and it seems that the 220MHz systems can deliver just that.
Incom’s Baker said “We are providing voice and data communications. Our users are able to take one piece of equipment and utilize voice as well as data. There are not that many carriers that can offer that.””It is very rare in the industry that someone can provide [the users] the best quality service at the smallest price,” said MacMillan’s Perez. “Compared with other systems we [the 220MHz] go further; systems have clearer communications, a clear signal and can also provide more features. The radios that we use have 26 data functions that you can set instead of voice, according to your needs. We just offer the cutting-edge technology at the lowest price.”
Perez said the fact that licenses were given to people who didn’t have experience in developing systems presented an opportunity to companies such as his, which was able to offer its services assisting these inexperienced people in managing their systems.
Future of 220MHz systems “This market is going to explode, because in many of the major markets, 800MHz and 900MHz frequencies are already jam-packed,” said Perez. He thinks that as soon as the data application comes on line, demand for data services will exceed demand for voice services..
Incom’s Domres said the 220MHz technology is successful now, and will continue to be, because it is aimed at the dispatch user who doesn’t need all the “frills” that other technologies, such as cellular, offer. He said this technology is perfect for the company that needs just a brief answer from the vehicle that is away from the office, and a price that is affordable, so the user can easily justify the investment.
Too good to be true? A technology that offers the ability to hear and be heard, at any time, from anywhere, that offers instantaneous connection, excellent range, wide area coverage, high-quality audio, that can handle several tasks, and carries a very competitive price seems too good to be true. However, Richard Bell’s family thought that developing 220MHz systems was a good idea, and time is telling us that it seems to be true.
