(EMAILWIRE.COM, November 23, 2004 ) CEDAR KNOLLS, NJ -- Recent actions by the FCC have created, potentially, a competitor to the current cellular and PCS operators, based around the area of MSS - mobile satellite services.

"The FCC petition starts out simply claiming that mobile satellite needs enhancement. Why? Because its signals are blocked in major urban areas by tall buildings. The cure? A terrestrial supplement, called innocently enough 'Ancillary Terrestrial Component,' ATC," said Allan Tumolillo, COO of Probe Financial Associates.

"ATC would allow satellite carriers to provide continuous service to customers with a terrestrial add-on, using the same spectrum already in use for satellite mobile service. However, as with Nextel, the implications are likely to be far larger, including new competition to entrenched mobile and broadband providers, and in a time frame that may be shorter than the big 3G and UHF spectrum blocks PFA recently wrote about," said Tumolillo.

"The FCC order okays use by, Mobile Satellite Ventures (MSV - controlled by Motient, BCE and various investors), of a total of 28.4MHz of spectrum for the first authorized ATC service."

It should be noted that nothing in the list of conditions forbids calls placed on the ATC system from being originated and terminated on a terrestrial link. The service, while called ancillary, does not necessarily use a satellite at all. This, of course, has gotten the CTIA into a dither.

PFA's new report, "New Spectrum Initiative: Motient & BCE" assesses the strategic implications of ATC services.
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To obtain more information on Probe Financial Associates and its products, contact Karen Verrinder or visit PFA on the web at www.probefin.com.

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