Space Data Wins 1.4 MHz of Nationwide Spectrum in FCC Auction

📅 November 5, 2001 - Space Data Corporation (spacedata.net) was the high bidderon more than 1.4 MHz of nationwide Narrowband PCS spectrum in the 900 MHzband in the Federal Communication Commission's most recent auction. SpaceData will pay approximately $4.2 million for these spectrum licenses aftersmall business and tribal land bidding credits. "This is an extraordinaryvalue," explained the company's chairman and CEO, Jerry Knoblach. "In 1994,at the first FCC Narrowband PCS auction, this much spectrum would have costmore than $1.1 billion."

Space Data will use the spectrum allocation to bring a host of advanceddigital wireless communications services to rural areas and current coverageholes across the United States. The company's technology combines low-costcommunications electronics with weather balloons called "SkySites." Thetechnology, while unique to the telecom industry, has been used continuouslyfor more than 50 years by weather services throughout the world. The SpaceData system works seamlessly with existing wireless devices and serviceproviders at a cost comparable to the use of towers in urban areas.
Space Data will operate primarily as a "carrier's carrier" serving existingwireless service providers, who in turn serve the end users. The Space Datasystem allows wireless carriers to extend their reach into previouslyunserved and underserved areas at a fraction of the cost of building towersor using satellites. Space Data will open the world of advanced wirelesscommunications to the approximately 20 percent of the US population whocurrently live outside coverage areas. Deployment of the first Space Datasystem is scheduled for next year.
In Sept., the FCC's Wireless Telecommunications Bureau formally approvedSpace Data's balloon-based technology, a ruling that removed the finalhurdle in the purchase and use of a nationwide spectrum license that SpaceData acquired earlier in the year. When the FCC approves the company'slicense applications Space Data will hold licenses that cover 1.5 MHz ofnationwide spectrum. This spectrum will allow Space Data to provide avariety of high- quality, nationwide advanced wireless services to rural andoutlying suburban areas.
Patents are pending for Space Data's technology. The company has raisedprivate funding to develop its technology and fund its spectrumacquisitions, and is now arranging institutional financing to deploy theSkySite network. There will be a phased rollout of the system in the UnitedStates followed by deployment internationally.
In a separate but related action, the Jicarilla Apache Nation in New Mexicopassed a resolution certifying the requirements needed for Space Data toreceive bidding credits under FCC's Tribal Land Bidding Credit program.Space Data has committed to bring telecommunications services to the tribe's1289 square miles of reservation land. These bidding credits can be appliedby Space Data as payment in the just completed Narrowband PCS auction. TheFCC established this program of bidding credits to encourage the provisionof modern communications to tribal lands.
"We are very pleased that the Jicarilla leaders agree that our technology isthe most practical and efficient way to bring wireless service to theircommunity," said Knoblach. "We appreciate their leadership and know thatmany other Native American communities will also benefit."