Analysis of Future Needs

• Exhibit 2: Three Phases of Wireless Network Development (Illustration)

The wireless communication industry grew rapidly in the early 1990s when the Federal Communications Commission (FCC) conducted an auction of licenses for electromagnetic spectrum in the 1900 MHz band. The auction allowed numerous wireless service providers to enter the market, bringing a proliferation of cell sites as each carrier began construction of its own wireless network in subscriber communities.

Development of a wireless network typically occurs in three phases. The first stage is labeled the coverage phase, a period characterized by construction of antennas mounted on tall towers designed to achieve broad service coverage. When most areas are generally serviced and the number of subscribers continues to increase, the network moves into a second stage, the capacity phase, during which new shorter and lower-power cell towers are added to the system. Once the second-round development sites reach capacity, the system proceeds to a third stage, known as the residential phase. In this period of network development, short towers and very low power micro cells are installed in residential neighborhoods. (see Exhibit 2: Three Phases)

In Knox County, industry experts estimate that wireless network development is still in the coverage phase, with taller towers in greatest demand. This phase is expected to continue for three to five years before the network will reach the capacity phase, and another five to ten years are needed for residential phase development .

Third Generation Technology (3G), with its voice and image transmission capabilities, may be ready for local deployment by 2004, consistent with the anticipated arrival of the capacity phase of network development. As the number of local subscribers continues to grow, more cell sites will be needed in the coverage area. Co-location, the sharing of a single tower by multiple carriers, is expected to be the preferred structure choice. As tower construction continues, however, carriers will need to consider innovative design alternatives to provide service coverage without relying solely on taller towers. Antennas can also be co-located on existing tall structures, such as buildings, signs and water towers. Stealth towers are an option in residential areas and in other dense urban developments. Stealth structures are towers designed to look like flagpoles, silos, trees or other commonplace landscape features. Carriers, tower builders, neighborhoods, and local government officials must work together to resolve issues of network infrastructure development in or adjacent to residential communities.