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The 1970s The First Wireless Networks
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The first wireless phone systems appeared in the United States in the 1970s Based on technology developed at AT&T s Bell Labs in the late 1940s, these systems were analog, operated in a limited frequency range, and could only handle a low volume of simultaneous calls Initial uses were in law enforcement and public safety A key limitation of these systems was that they did not support communication continuity during movement from one cell to another2 Demand for mobile voice grew during the 1970s, requiring the development of methods to support more users in a single cell and mobility between cells Using cell sites of less than 1km in diameter, operators designed systems that, for the first time, enabled calls to be transferred from cell site to cell site, enabling true mobile voice The first system of this type to be installed was AT&T s Advanced Mobile Phone Service (AMPS), which was deployed in Chicago in 1979 Similar systems were installed in Europe and Japan in the early 1980s These systems are now referred to as first-generation networks The first-generation networks were hardly indicative of the future potential of wireless technology Demand for mobile telephony started to outstrip available network bandwidth, leading to dropped connections In 1981, the New York City system could only handle 24 simultaneous calls and the network operators limited the total subscriber base to only 700
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Sami Tabane, Handbook of Mobile Radio Networks, Boston: Artech, 2000, 206
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Part 1 Introduction to Wireless
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users!3 The limited capacity restricted mobile phone usage to an elite group of people Plus, the early mobile handsets were large and heavy Nevertheless, demand and interest in the mobile phone only increased Network operators eagerly upgraded networks to meet the growing demand The biggest hurdle to further network development was the wireless radio frequency Previously, governments allocated radio spectrum primarily for military and law enforcement purposes Government regulation of wireless spectrum was not a highly visible public policy issue Faced with these emerging wireless technologies, governments around the world needed policies and procedures to allocate additional wireless spectrum in an appropriate manner In the 1980s, the United States and the rest of the world took divergent policies to promote the development of new wireless networks In Europe and Asia, the policy thrust was driven toward the development of a single wireless voice standard (GSM), while there were competing standards in the United States These will be discussed in more detail in the next section At the time, these differences did not warrant much attention from policy makers and technologists alike Only in the twenty-first century would these differences manifest themselves By this time, the wireless market had evolved and growing interest had created the need for a true global wireless network Unfortunately, these differences would prove to make that dream difficult to achieve in the short term
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The 1980s Wireless Markets Start to Evolve
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Following the success of the AMPS systems, pressure grew on the US government to allocate additional radio spectrum for wireless communication The Federal Communications Commission (FCC) was tasked to regulate the market, through licensing new radio spectrum In the spring of 1981, the FCC announced its intention to allocate 40 MHz of spectrum in the major metropolitan markets in the United States This was a significant step forward in capacity This spectrum enabled 666 channels for cellular communication in each major metropolitan market Compared to the 44 channels that had been previously allocated to cellular service, this was a quantum leap in capacity4 The FCC s initial focus was on the
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James B Murray, Wireless Nation, Cambridge, Mass: Perseus Publishing, 2001, 19 Ibid, 25
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1 Welcome to a Wireless World
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largest cities in the United States, but ultimately, spectrum would be allocated for the top 300 metropolitan areas in the country To promote competition, the FCC awarded each market two licenses: one license to the local phone company (otherwise known as a Baby Bell) and another license to a nonwireline company Most importantly, the FCC was technology agnostic winners of the spectrum auctions could deploy any wireless network technology The technology-independent policy was indicative of the laissez-faire policies of President Ronald Reagan s administration, but it was also influenced by the US government s breakup of the AT&T phone monopoly To promote more competition in the telecommunications market and avoid creating a national cellular monopoly, the FCC wanted two carriers in each market Since the AT&T breakup was announced in the midst of the initial wireless spectrum auction in 1982, it was clear that a host of new players, not AT&T, would be creating the wireless voice market AT&T even downplayed the value of cellular service and did not participate in the first spectrum auction, leaving the market wide open for other new entrants When AT&T finally entered the cellular market through the 1993 acquisition of McCaw Cellular, it would cost AT&T over $12 billion In 1983, the FCC began awarding spectrum licenses in the major markets In October 1983, Ameritech, one of the seven Baby Bells created by the AT&T breakup, launched the first commercial system in Chicago and quickly signed up 3,000 subscribers5 Although these early systems were analog, the FCC s technology-agnostic policy meant that little attention was paid to developing compatible networks In Europe, the mobile phone market developed quite differently In the early 1980s, European administrators were developing policies for a European wireless market At the time, the European telecommunications market differed from the US market in several key dimensions, which ultimately led to very different policies than those of the United States, as explained in the following list:
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State-owned telephone monopolies In most of Western Europe, state-owned telephone monopolies provided local and long-distance phone service Competition was minimal Although privatization efforts were underway (notably in the United Kingdom), most countries only had one phone carrier This contrasted sharply with
Ibid, 70
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