PCN In Cable TV's Strategic Plans (1991)

By Archer S. Taylor, Malarkey-Taylor Associates, Inc. & Andrew D. Roscoe, Economic and Management Consultants International, Inc.

Personal Communications Networks (PCN) will be an important new service for cable operators when commercial licensing begins in the mid- 1990s. The technological and marketing synergies with cable TV make these services an inviting opportunity for cable companies in telephony. The potential synergy of cable TV and PCN has prompted several multiple cable system operators (MSO) to seek authority from FCC to conduct technical and marketing experiments. PCN is a network of advanced digital tetherless telephones, technologically similar to the mobile cellular services but using much more closely spaced microcells, and small cordless handsets suitable for pedestrian use. Low power and spread spectrum techniques are proposed to minimize interference. The disappointing experience in the U.K. with the more limited CT -2 is believed to be primarily a result of excessive haste in granting the four licenses, and in launching the service in April 1990 without fully developed, compatible infrastructure. Three PCN licenses have been awarded in the U.K, with commencement of service not expected before 1992 or 1993. EMCI has conducted extensive research on the market potential for CT- 2 and PCN in the U.S. The phenomenal growth of cordless telephones, paging, and cellular telephones in the U.S. suggests significant public demand for truly tether less personal communication facilities. The capital requirements and operational characteristics of microcell services will differ significantly from services such as cellular due to different system configurations.

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