Sprint/Nextel Facing Rough Waters, Tough Times

For those wondering just what is and has been happening with Sprint/Nextel the last several years, here's a good review of the mess they've managed to get themselves into.

Excerpt:

"It was supposed to be a formidable competitor in the mobile wireless industry, leading the industry in key financial metrics and in innovative services. But less than three years after Sprint and Nextel merged their operations in a $36 billion deal, the company is now trying to stop the bleeding."

The bleeding has resulted in an extraordinary loss of several hundred thousand subscribers in the last quarter, whose care has been badly neglected primarily due to internal culture conflicts associated with the failed integration of both company's business processes and their incompatible networks.

New CEO Dan Hesse certainly has some challenges ahead of him.

Worth a read....


NR

Invitation to the Spectrum Matters On-Line Discussion Group

Advancements in wireless (RF or radio) communications and information technology over the last decade have unleashed a flood of new devices, products, and services, provocative ideas and intriguing questions, political rhetoric and posturing, market-place confusion, controversy, and, a growing concern by many as to whether FCC and NTIA spectrum allocation, regulation, use, and rules enforcement policies are 'keeping up with the times' - or with technology.

As one might expect, all this hullabaloo has led to increasing calls by wireless stakeholders for something called "spectrum reform" that we're hearing more and more about each day.

Spectrum Matters is an on-line, moderated Yahoo! discussion group focusing on member-shared wireless spectrum news, information, and trends, responsible opinion, debate, ideas, experiences, commentary, and questions related to the real or perceived social, economic, and technical benefits or consequences that may be realized by updating legacy and/or implementing new wireless spectrum management policy to effectively address these important issues and concerns.

Topics and discussions are targeted towards business, educational, industrial, enterprise, public safety, local, state, regional, federal government and similar types of PROFESSIONAL wireless mobile communication users who depend on access to the radio spectrum in their daily activities and who want to learn more about how and why wireless spectrum matters can, will, or already have had an impact on them.

If you are a professional wireless user and have an interest in wireless communications in general and spectrum issues in particular, please consider joining us. (Membership approval requires a response to a New Member Confirmation Request emailed to you during the sign-up process)

Will The Failure of FCC Spectrum Auctions Impact 700 MHz?

hmmmm.....

According to this May 2006 paper from the Center for American Progress (quote) "The Federal Communications Commission’s auctioning of spectrum licenses is a failure. The auctions have been subject to collusion and manipulation by big business, and as a result have failed to meet legislative guidelines." (end quote)


(Quote) "Analysis of the last ten years of FCC spectrum auctions reveals that these auctions have met neither the standards nor the expectations expressed by Congress in their authorization. They do not facilitate the development of robust markets or meet the needs of the broader public interest. Instead these auctions, as they have been conducted, appear to serve the narrow interest of dominant actors in the telecommunications industry. They have systematically resulted in market concentration and the growth of the oligopolistic market power of major actors in the telecommunications industry. They have been pervious to manipulation by tacit collusion among bidders in ways which no minor amendment of the auction process could possibility remedy. Even the often made argument that FCC spectrum auctions maximize revenue fails in the face of both FCC mispricing of licenses, reflected in the large number of licenses which fail to be auctioned because no bidder meets the reserve price, and substantial evidence that strategic behaviors like preemptive bidding can guarantee better capitalized bidders licenses at consistently lower prices than their competitors. What has principally driven the adoption of spectrum auctions by the FCC and Congress has been ideologically-libertarian economic theory, captured in simplistic models which ignore inconvenient facts. Game theory is a powerful tool for analysis of economic behavior. However, a game-theoric model is only as good as its assumptions. Assumptions about information, bidder resources, risk-acceptance and -aversion, and the structure of bidder preference all matter, because they imply things about how the real world operates. All modeling is along a continuum between analytical tractability and empirical verisimilitude: the more mathematically tractable the model is, the less it resembles the real thing being modeled. It is for this reason that social scientists frequent evaluate and refine such models through experiments to see whether an analytically tractable model captures what really matters about the thing it models. The past ten years of FCC spectrum auctions have amounted to such an experiment, and the experiment demonstrates that the models on the basis of which Congress and the FCC were persuaded to adopt spectrum auctions fail dramatically in their prediction of real-world outcomes. When tested by the actual performance of such auctions, the chasm between the outcomes predicted by theory and the outcomes observed is immense. In sacrificing the public interest in pursuit of hypothesized market efficiencies and greater revenue we have arrived at the worst of both worlds: FCC spectrum auctions neither serve the public interest nor realize the promised economic efficiencies and revenue maximization touted by their advocates." (end quote)


(Quote) "Until the FCC can demonstrate that it can conduct auctions in the public interest, Congress should halt the ongoing plans to auction licenses to the public spectrum." (end quote)



Kinda makes one question just how small business entrepreneurs, women, minorities, and public safety/first responders will fare in the up-coming - and perhaps most important auction of all - that of the 700 MHz spectrum.


NR

The FCC's Strategic Spectrum Plan - 2006 - 2011

In a prior post, I shared information on policy and use of that portion of the radio spectrum managed by the NTIA for Federal Government users.

However, the Federal Communications Commission (FCC) is charged with management and regulation of the spectrum (among their other responsibilities) for all other radio/wireless communication users.

Here's their 2006-2011 strategic plan (as of September, 2005) that gives one an idea of what to expect from the agency in the next 5 years, including:

• An overarching mission statement;
• General goals and objectives defining how the Commission will fulfill major
segments of its mission;
• A description of the means and strategies that will be used to achieve the
general goals and objectives;
• A description of the relationship between performance goals in the annual
performance budget and the strategic goal framework;
• Identification of key factors that could affect achievement of the general goals
and objectives; and
• A description of program evaluations used in preparing the Strategic Plan and a
schedule for future evaluations.

Readers specifically interested in radio and wireless communication spectrum matters should pay close attention to Notices, actions and decisions made by the FCC's Wireless Telecommunications Bureau (WTB), the new Public Safety and Homeland Security Bureau (PSHS), and, the Office of Engineering and Technology (OET). Additional information on spectrum policy can be found on the FCC's Spectrum Policy Task Force site.

Finally, here's how you can "express yourself" should some of the Commission's activities stir you out of complacency about spectrum matters.

NR

Spectrum Matters Discussion Group established

For those reading this blog (or am I still on my own?) who may wish to engage in further discussions or, share their ideas or concerns about wireless spectrum matters in a forum or group setting, here's good news. Please visit the new Spectrum Matters discussion group on Yahoo! established just for that purpose. (Free registration required)

This moderated, spam-free group focuses on news, information, opinion, responsible debate, and commentary on all matters related to the potential social, economic, and technical benefits (or consequences) to be realized by updating legacy and/or implementing new wireless spectrum management policy in the United States.

Topics and discussions are targeted towards business, educational, industrial, enterprise, public safety, local, state, regional, federal government and similar types of PROFESSIONAL wireless users who depend on spectrum in their daily activities and who want to learn more about how and why wireless spectrum matters can, will, or already have had an impact on them.

If you have an interest in wireless communications in general and spectrum issues in particular, please join us. Membership requires a response to a New Member Confirmation Request emailed to you during the sign-up process.

NR