http://www.cnn.com/2002/TECH/ptech/06/22/balloon.wireless.ap/index.html
June 22, 2002
Weather balloons to plug wireless gaps
CHANDLER, Arizona (AP) -- Space
Data Corporation isn't the first
company to come up with a
pie-in-the-sky idea promising to bring
seamless wireless service to rural
America.
Some have proposed filling the coverage
gaps by launching communication
equipment on blimps, rockets and
solar-powered gliders. As yet, for a slew
of financial and technological reasons,
none has proven feasible.
But Space Data says its plan to create
America's first floating wireless network --
by putting disposable transmitters on
government weather balloons -- has
already undergone successful testing and
is economically viable.
A trial run with text-messaging service in
the Phoenix area is slated for this summer.
The official launch of the messaging service would begin next spring in
Arizona,
New Mexico, Texas and Oklahoma, extending nationwide by the end of 2003.
Cellular phone service could be added a year later if the company secures
more funding.
'Poor man's satellite'
For the last 60 years, the National Weather Service has launched 70
balloons
across the country twice a day to collect temperature, humidity and wind
data.
The balloons typically hover at about 100,000 feet for about 24 hours.
Because the balloons are launched every 12 hours, there would always be
at
least one of Space Data's packages floating in the stratosphere above
each
coverage zone, assuring uninterrupted service for all rural areas in the
continental United States, said Jerry Knoblach, Space Data's chairman and
chief executive.
Space Data, based in a Phoenix suburb, has raised $13.5 million from
private
investors, and has been discussing the idea with the weather service
since
January 2001, Knoblach said.
Knoblach hopes to arrange a barter deal: In exchange for letting the
company
hitch a ride on the balloons, weather officials would use the
satellite-based
tracking system on Space Data's network to gather wind and other data
more
precisely.
"The goal is that no money actually changes hands," said Knoblach, who
described the weather service's response as positive.
Weather service spokesman John Leslie confirmed discussions with Space
Data have taken place, but said they have not progressed to the level of
negotiations.
If the government doesn't approve Space Data's proposal, the company will
proceed with the endeavor by launching its own balloons, Knoblach said.
Space Data's service, known as the SkySite Network, would benefit roaming
customers and those who live in rural areas where wireless service
currently
isn't available, he said.
The service would be sold to existing wireless companies who have gaps in
their network coverage.
"We would be the carrier's carrier," Knoblach said.
While nearly everyone in the country now has access to at least one
cellular
service where they live, there are still huge swaths of unpopulated and
rural
land where there's no wireless signal.
Wireless carriers are not rushing to fill such gaps because there isn't
enough
business in sparsely populated areas to justify the hefty expense of
installing
and operating a wireless tower.
"This is really a poor man's satellite," Knoblach said.
Hopes for seamless coverage
As he explains how the SkySite works, he admits the idea sounds
far-fetched
at first blush.
Each of the weather balloons could provide service to an area of about
100,000 square miles. The resulting overlap in coverage between balloons
would enable ubiquitous wireless service throughout the country, Knoblach
said.
By contrast, the signal from a wireless tower typically covers from 100
to 150
square miles.
The company estimates its annual operating expenses at $35 million per
year.
About half of that would go toward equipment: $300 worth for each of the
50,000 or so balloons that would be launched over the course of a year.
Since the chance of finding a balloon once it falls back to earth is
remote, the
company isn't counting on getting any equipment back once it is
launched.
Jonathan Atkin, an industry analyst for RBC Capital Markets, said the
key to
Space Data's success will be in its ability to contain operating costs
while
providing adequate returns to wireless carriers. He also said the
company will
have to convince carriers that the weather balloons are reliable enough
to keep
Space Data's network gear in the air for consistent coverage.
"What the wireless companies want to do is provide good service to their
customers," Atkin said. "If they can leverage Space Data's service to
fill in gaps
in their own coverage then there's no reason why this shouldn't come into
consideration."
Meanwhile, Space Data is pushing ahead.
In November, the company won the rights to use a designated frequency of
1.4 MHz in a Federal Communications Commission auction.
Space Data doesn't expect any obstacles from the Federal Aviation
Administration. Under existing FAA rules, balloons can be launched in
domestic airspace as long as the balloon and its contents weigh less
than 6
pounds -- a requirement the SkySite package meets, Knoblach said.
Copyright 2002 The Associated Press. All rights reserved. This material
may
not be published, broadcast, rewritten, or redistributed.
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