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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7g7]_
January 9, 1996
FOR
To the Mayor and Members of the City Council
XA Subject,
Introduction
The Federal Communications Commission (FCC) has been working to deploy a type of
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wireless communications service called Personal Communication Services (PCS). To that
end, the FCC has sold, to private corporations, the rights to use the radio spectrum
frequencies that are now in use by local Aoverozuoute everywhere. In Fort Worth, the
functioning of the motir� radio communication oyatozn depends upon microwave
tronazuioai000 in the part of the radio spectrum that has been sold. Fort Worth zouot` just
like uC6mr local gmveruzunuta' vacate the currently used 8rmgueooi*e before PCS can be
deployed 6y the corporations that purchased the P0S licenses.
While the frequencies now in use by Fort Worth have been sold, it is incumbent upon the new
on,uorm of those bregoeu6om to transfer our transmission oyoteouo to different frequencies in
the radio spectrum. This transfer will require the total replacement ofvirtually all existing
microwave transmission equipment now in use by Fort Worth. The FCC has allotted three
years voluntary and two years for mandatory negotiations between local govern-ments and
the PC8 licensees tCit involves Public Safety systems. Iu Fort Worth, the replacement ofthe
existing microwave ay*tmzo affects all public safety radio communications nyabsoum.
PCS ia touted ue the first new utility o£the century. It represents m new and fundamentally
different type of high capacity wireless communication system that will compete directly with
wired communication oyotezua, such as cable TV and the local telephone company. P0S
probably means the eventual obsolescence of franchise agreements. It means more control by
industry and less control by local government. It is driven byFederal legislation and the
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Federal Communications Commission. POS is expected to eventually make the cellular
telephone industry obsolete.
There are only two existing cellular telephone operators inu market area. Cellular telephone
networks are low capacity—they can transmit voice and low speed data, but do not have the
capacity to transmit voioe, data. video, fax, etc. as does PCS technology. There exists now
about 15.000 cellular towers in the United States. There exists about 25 million cellular
telephone customers today.
By comparison, there are also two PC8 licensees in each market area. T`OS is high capacity
system capable of transmitting virtually any type of signal. PCS is new 6zDv digital
technology. The PCB industry estimates that itwill require at least I00`000 new towers in
the United States to make PCS technology operational. The P()S industry estimates that it
will have over 167 zuJ600 an6moribora in the next 6acu6m. PCB providers' like cellular
providers, cannot 6e franchised by local government.
OFfiCIAL RECORD
CITY SECRETARY
IT. WORTH, �� V
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS-----
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INFORMAL'� AL REPORT TO CITY COUNCIL MEMBERS No. 7C)71
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January 9, 1996
< To the Mayor and Members of the City Council
Page 2 of 2
r 'No
yen Subject: PERSONAL COMMUNICATIONS SERVICES NEGOTIATIONS
Issues
There are several significant issues related to the deployment of PCS technology in the City
of Fort Worth. First, tower siting might become an issue as the industry tries to build the
infrastructure necessary to provide wide-scale PCS availability. Second, there is a distinct
possibility that PCS vendors will not share tower sites, thus, compounding the tower siting
issue. Third, the City of Fort Worth needs to negotiate with the PCS licensees to move our
microwave communications systems to new frequencies. Fourth, the City of Fort Worth will
be unable to franchise PCS systems like land-based wired systems are now franchised.
Strategy
The Information Systems and Services Department (ISS) presented this material to the Inter
and Intra Governmental City Council Committee seeking direction on negotiations with the
PCS licensees. ISS is proceeding to negotiate the best possible arrangement for the City of
Fort Worth regarding the replacement of the city microwave transmission system. ISS is
also investigating tower siting issues and development regulations related to
communications towers. Also, ISS will investigate the possibility of offering city-owned
properties for PCS tower siting where it would not adversely impact neighborhoods.
Finally, the City of Fort Worth must recognize now the fundamental shift that will take place
between wired and wireless communications technologies over the next decade and prepare
now—financially and organizationally—for the long term future.
(1"&(2 ,
Bob Terrell
City Manager
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ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS