Joint Venture Silicon Valley cellular phone service report by BayAreaNewsGroup

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A new report released by Joint Venture Silicon Valley looks at why cellular phone service continues to be spotty in the South Bay.

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									A Guide for Community Action

how We Can improve Cell Phone Coverage in Silicon Valley
A primer for community leaders, residents and service providers
August 1, 2008

Board of Directors OFFICERS
Harry Kellogg Jr., Co-Chair, Silicon Valley Bank Hon. Liz Kniss, Co-Chair, Santa Clara County Board of Supervisors Russell Hancock, President & CEO, Joint Venture: Silicon Valley Network

August 2008

DIRECTORS
John Adams, Wells Fargo Bank Larry Alder, Google Hon. Elaine Alquist, California State Senate Harjinder Bajwa, Solectron Gregory Belanger, Comerica Bank George Blumenthal, University of California at Santa Cruz Steven Bochner, Wilson Sonsini Goodrich & Rosati Ed Cannizzaro, KPMG LLP Pat Dando, San Jose Silicon Valley Chamber of Commerce Chris Dawes, Lucile Packard Children’s Hospital Darren Deffner, Pacific Gas and Electric Chris DiGiorgio, Accenture Inc. Jon Friedenberg, El Camino Hospital Paul Gustafson, TDA Group Timothy Haight, Menlo College Chet Haskell, Cogswell Polytechnical College Joe Head, Summerhill Homes Kevin Healy, PricewaterhouseCoopers Gary Hooper, Hooper & Associates Beatriz Infante, VoiceObjects, Inc. Mark Jensen, Deloitte & Touche LLP Martha Kanter, Foothill-De Anza Community College District Don Kassing, San Jose State University W. Keith Kennedy Jr., Con-way Alex Kennett, Intero Real Estate Linda J. LeZotte, Berliner Cohen Bernadette Loftus, Kaiser Permanente James MacGregor, Silicon Valley San Jose Business Journal John Maltbie, Santa Clara County Tom McCalmont, REgrid Power Jean McCown, Stanford University Curtis Mo, Wilmer Cutler Pickering Hale and Dorr LLP Joseph Parisi, Therma Inc. Bobby Ram, SunPower Hon. Chuck Reed, City of San Jose Paul Roche, McKinsey & Company Clyde Rodriguez, AMD Chris Seams, Cypress Semiconductor Corporation John Sobrato, Sr., Sobrato Development Companies Neil Struthers, Santa Clara County Building & Construction Trades Council Linda Williams, Planned Parenthood Mar Monte Daniel Yost, Orrick, Herrington & Sutcliffe LLP

SENIOR ADVISORY COUNCIL
Frank Benest, City of Palo Alto (Ret.) Eric Benhamou, Benhamou Global Ventures William F. Miller, Stanford University

2 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

how We Can improve Cell Phone Coverage in Silicon Valley
A primer for community leaders, residents and service providers
CONTENTS
4 CELL PHoNES ARE A PART oF ouR DAILY LIvES

7

CELL PHoNE CovERAGE IN SILICoN vALLEY IS NoT CoMPETITIvE

8

WHAT ARE THE REASoNS FoR PooR CELL PHoNE CovERAGE?

12 WHAT WE CAN Do To IMPRovE CELL PHoNE CovERAGE

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 3

Cell phone service is no longer a matter of mere convenience for Silicon Valley companies, nor just a luxury for consumers. In today’s world most people can’t imagine getting through the day without it. A rapidly growing population has disconnected its landlines altogether. The cell phone–based E911 service is saving lives by automatically directing emergency workers to the scene of an accident, heart attack, or crime. Established businesses, entrepreneurial start-ups, and residential consumers are choosing locations by the quality of cell phone service. And yet many people in Silicon Valley find they cannot rely on the service. Calls are dropped, sound quality is poor, and sometimes there is simply no connection. It’s hard to believe, but cell phone service in Silicon Valley is not up to world standards. This short primer explains why this is so, and offers solutions—solutions that will come about when Silicon Valley residents, our elected officials, and our local service providers are working as partners. Joint Venture is committed to building these partnerships, and we eagerly invite your support.

CELL PHONES ARE A PART OF OUR DAILY LIVES
Cell phones have enormous personal benefits for mobility, convenience, and safety. there is no better indicator of the benefits of cell phones than their increasing popularity. the Cellular telecommunications industry association (Ctia) found that 76% of the u.S. population—255 million people—had cell phone subscriptions at the end of 2007.1

Cell phones are becoming our primary communication medium
in 2007, subscribers used a whopping 2.1 trillion minutes on their cell phones, translating to an average of approximately 700 minutes per user per month. Minutes used grew 17% from 2006 to 2007.

1. Source: Ctia – the Wireless association. except as noted, all data citations and charts in this report are from the Ctia. the Ctia has granted permission to use their data in this report.

4 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

Year-End 2007 Estimated Wireless Subscribers Up More than 22 Million from December 2006
300,000,000

Estimated Subscribers
255,395,599 233,040,781

207,896,198

Source: CTIA – The Wireless Association

250,000,000 182,140,362

158,721,981

200,000,000 140,766,842

128,374,512

109,478,031

150,000,000 86,047,003

69,209,321

100,000,000 44,042,992 33,758,661

55,312,293

24,134,421

16,009,461

11,032,753

50,000,000 5,283,055 2,069,441 Dec 88 1,230,855 Dec 87 3,508,944 Dec 89 681,825 Dec 86 640,213 Dec 85

7,557,148

0

The cell-only population is growing
Ctia – the Wireless association estimates that 46,000 americans become wireless subscribers every day.2 in early 2003, 3.2% of households were “cell-only,” meaning they did not have a fixed phone line.3 By December of 2007 this number had grown to 16 percent. half of these cell-only users are below the age of 30, as compared with 21% of the u.S. population. a study by the national Center for health Statistics found that 26% of parents of minors use only a cell phone and do not have a landline.

Size of the Cell-only Population
20%

Dec 90

Dec 91

Dec 92

Dec 96

Dec 98

Dec 99

Dec 00

Dec 02

Dec 03

Dec 07

Dec 93

Dec 94

Dec 95

Dec 97

Dec 01

Dec 05

Dec 06

Dec 04

Source: Consumer Expenditure Information Systems
15%

10%

5%

0

2000

2001

2002

2003

2004

2005

2. Source: national emergency number association. http://www.nena.org/pages/Contentlist.asp?CtiD=23 3. Source: Ctia – the Wireless association. except as noted, all data citations and charts in this report are from the Ctia. the Ctia has granted permission to use their data in this report.

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 5

We depend on our cell phones in emergencies
More than 291,000 calls are made to 911 from cell phones every day in the united States. 74% of subscribers say they have used their cell phone in an emergency and gained valuable help.4

Annual Wireless 9-1-1 Calls
90,000,000

Source: CTIA – The Wireless Association

80,000,000

70,000,000

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

Cell phones have taken on a multiplicity of functions
Cell phones have become deeply integrated into the lives of their users, providing not only voice calls but also a host of other data services such as Short Message Service (SMS), Multimedia Messaging Service (MMS), traffic mapping, e-mail, photo sharing, and even video sharing. in 2005, while total wireless revenues increased by 11%, revenues from data services (services other than voice calls) increased 86.4% over 2004. the most popular among the data services is SMS, a feature that is growing rapidly in popularity in the united States. in 2007, cell phone users sent 363 billion text messages, more than double the 158 billion sent in 2006. 52% of cell phone users sent text messages on a regular basis in 2006—up considerably from 44% in 2005.5 other popular data services identified by the Pew internet & american life Project, associated Press, and aol cell phone survey include sending photographs, playing games, surfing the Web, and e-mail.

4. Source: the Pew internet & american life Project memo on cell phone use; april 2006 5. Source: Jupiter research Corporation.

6 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

40

Percent of Cell Users Engaging in Various Data Services

When my cell phone doesn’t work, I don’t work.
—Ellen Becht, VP, SVB financial

35

30

25

20

15

10

5

0 Send/receive SMS Take still pictures Play games Access Internet Send/receive e-mail Play music Record video clips Get maps

We have come to depend on our cell phones. We expect them to work. We need them to work.
Cell Phone Coverage in Silicon Valley is Not Competitive
everyone has their favorite dead zone—Page Mill road in Palo alto, Sand hill road in Menlo Park, spots on highways 280 and 880, Stanford hospital, a neighborhood, a school campus. When visitors come to the Valley from europe and asia they are surprised by the difficulties of finding a signal, the frequency with which calls are dropped, and the lower quality of the sound.

How did this happen? Why, in the world’s center of innovation, is it so hard to connect?
Map of reported dead cell zones by carrier on www.deadcellzones.com in June 2008.

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 7

What are the reasons for poor cell phone coverage?
Poor cell phone coverage is not unique to the San francisco Bay area. Many communities in the united States are suffering and the primary reasons are often the same. 1.The original network was not designed to provide ubiquitous coverage. When the cell phone network was first deployed, the priority was on covering business districts and travel corridors. tall, industrial-size towers were built along highways and antennas were installed on the roofs of office buildings in the downtown areas. as prices fell and more consumers purchased cell phones, the carriers began building cell sites along major arteries and tried to cover residential communities. But the signal could not reach everywhere; carriers needed to build inside the neighborhoods to fill in the gaps. 2.The growth in the number of users and the volume of usage is overloading the network. the cell phone network was designed to handle voice communications. originally an analog system, the carriers began converting their networks to digital signals in the late 1990s in order to increase capacity. now, with the explosion of new data services, the network is struggling again. e-mail, Web search, mapping, photo exchange, and tV viewing are overloading the system. the carriers are just beginning to deploy WiMax, a new technology that is better designed for data-intensive communications. 3. Frustrated users do not realize they can help solve the problem. When service is bad, cell phone users tend to blame the carriers. in many cases, however, they should also be contacting their local elected officials to voice their needs and encourage solutions. letters and phone calls make a difference. users can also report coverage gaps on public Web sites like www.deadcellzones.com, and www.cellreception.com. 4. Carriers are applying for permits to expand coverage, but the process can be slow and cumbersome. the major carriers in the San francisco Bay area are Sprint/nextel, at&t/Cingular, t-Mobile, and Verizon Wireless. these carriers have been trying to increase their coverage by building more cell sites. they recognize that good coverage is necessary to attract and retain customers. Some, like t-Mobile and Sprint, now provide detailed coverage maps on their Web sites to help customers choose the carrier that provides coverage where the customer needs it.

8 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

Many cities have developed guidelines to review and approve applications for new installations, and for co-location on existing facilities. Still, the typical application takes between 18 months and two years to get approved. Some cities require the carrier to conduct an extensive analysis of alternatives before an application can be submitted.

Darker color indicates stronger coverage. June 2008.

Sprint

t-Mobile

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 9

even when an application meets all of the requirements in the guidelines and is supported by city staff and the planning commission, an application can be held up by the elected officials at the request of residents. there are two major reasons why some applications get reviewed at the council or board of supervisors level: 1. Residents express concern about the health effects of radio frequency radiation from cell site equipment. they are especially concerned that signal transmission carries long-term health effects, particularly for children. residents and elected officials should understand, however, that these concerns have long been laid to rest. radio equipment is regulated to ensure public safety and equipment is tested and certified. Countless scientific studies have been conducted worldwide; there is widespread agreement in the scientific community that so long as equipment conforms to the standards there is no health risk.6 in fact, the federal Communications Commission (fCC) has ruled that local governments may not deny a permit on the basis of health concerns so
—Amit Kumar, resident of San Jose

I use T-Mobile and I don’t get a signal at my friend’s house in Fremont, where I go every week. When I’m there I’m just not available, no matter why you need to reach me.

long as the equipment meets federal standards. the fCC’s ruling notwithstanding, a number of Silicon Valley municipalities have hired consultants to review equipment specifications and testify before councils. this causes delays and is almost always unwarranted because the carriers’ equipment meets or exceeds the fCC’s safety standards. 2. Residents believe the cell site will be unattractive, spoil their view, or reduce property values. this may have been true in an earlier time, but today the carriers design sites that are much smaller in size and disguised to fit in with the surroundings. Cell sites can be hidden in chimneys and church steeples, mounted on park lighting, or even disguised as trees.

6. for more information see, “human exposure to radio frequency fields: Guidelines for Cellular and PCS Sites” at http://www.fcc.gov/cgb/consumerfacts/rfexposure.html. also see the World health organization fact sheet on “electromagnetic fields and public health: the international eMf Project at, http://www.who.int/mediacentre/factsheets/fs181/en/

10 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

Some disguised cell sites on the Peninsula.

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 11

What we can do to improve cell phone coverage
Silicon Valley’s coverage issues can be fixed. in fact, we are already making significant progress: residents are coming to a better understanding about the facts, local governments are improving their processes, and the carriers are working hard to address local concerns. Joint Venture is committed to working with all parties until our region’s service levels are where they need to be. We are doing this by: 1. Serving as an honest broker between the carriers, the public, and our public sector decision makers. 2. Collecting survey information, mapping the dead zones throughout the Silicon Valley region, bringing these to the attention of the relevant officials, and keeping the public informed of progress. 3. educating elected officials and other public decision-makers about the facts and myths regarding cell phone towers. 4. Providing comment at public hearings, filing letters, and encouraging local residents to do the same. 5. articulating the compelling regional interest in having a fully functioning network, and the implications for our competitive standing if we don’t. ultimately, however, our progress will depend on everybody doing their part. Specifically, we call on CITY AND COUNTY LEADERS to: • Make certain your jurisdiction has a clear and sensible set of guidelines for permitting cell sites. • have permit applications reviewed by staff and planning commissions as a matter of routine, and save council and board review for those rare instances when the siting invokes deeper policy questions. • fast-track applications that meet all of the guidelines. • Maintain a map of cell phone coverage gaps in your community and work with carriers to fill them in.

12 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

We call on CARRIERS to: • Provide consumers with an easy way to report coverage problems.

Visitors from Asia always seem surprised that cell phone service in Silicon Valley is worse than it is back home.
— Dean Warshawsky, Ceo, teltek Systems and Mayor, town of los altos hills

• Provide jurisdictions with accurate coverage maps to identify where there are gaps in service. • Work with city and county staff members to design cell sites that are appropriate for the community, while achieving technical objectives. • Submit only those applications that conform to the permitting guidelines of the community. • Contact local subscribers to let them know that an application has been filed. encourage them to call or write letters to council members and staff expressing their views on cell phone coverage. We call on RESIDENTS AND LOCAL BUSINESSES to: • notify the carrier about your coverage problems by e-mail or letter. • Write a letter or send an e-mail to your city council or board of supervisors to let them know that you want coverage improved. Provide the address or intersection where you are experiencing problems and the name of the carrier. • report your dead zones on the Joint Venture Web site (www.jointventure.org) or on www.deadcellzones.com and www.cellreception.com.

Additional information
• the Pew research Center - http://people-press.org/ • Ctia – the Wireless association - www.ctia.org • the federal Communications Commission (fCC) - www.fcc.gov

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 13

Joint Venture: Silicon Valley Network
Accenture Accretive Solutions Adobe Systems AeA AMD AT&T Bank of America Bay Area Council Foundation Bay Area SMACNA Benhamou Global ventures Berliner Cohen, LLP Bingham McCutchen, LLP Cadence Design Systems Cisco Systems Cogswell Polytechnical College Colliers International Comerica Bank CommerceNet Cooley Godward, LLP Cypress Semiconductor Corporation Deloitte & Touche DLA Piper, LLP eBay Foundation El Camino Hospital Foundation Ernst & Young Foothill-De Anza Community College District Foundation Google Greenberg Traurig, LLP Half Moon Bay Brewing Company Health Trust Hewlett-Packard Hoge Fenton, LLP Hood & Strong, LLP JETRo Johnson Controls Kaiser Permanente KPMG Koret Foundation Lucile Packard Children’s Hospital at Stanford McKinsey & Company Menlo College Morgan Family Foundation Microsoft Mitsubishi International Corporation o’Connor Hospital oakland Athletics Pacific Gas & Electric Company Packard Foundation Pipe Trades Training Center of Santa Clara County REgrid Power Robert Half International SamTrans/CalTrain San Francisco 49ers San Jose Convention and visitor’s Bureau San Jose Sharks San Jose/Silicon valley Business Journal San Jose/Silicon valley Chamber of Commerce

2008 Investors
San Jose State university Research Foundation SanDisk Santa Clara Building & Construction Trades Council Santa Clara valley Water District Silicon valley Community Foundation Silicon valley Power Skoll Foundation Smith, Boyd & Jill Sobrato Development Companies Solectron SolutionSet Stanford university SummerHill Homes SunPower Corporation SvB Financial Group Synopsys TDA Group Therma Trident Capital university of California, Santa Cruz valley Medical Center Foundation varian Medical Systems voiceobjects, Inc. volterra Wells Fargo Bank Wilmer Hale, LLP Wilson Sonsini Goodrich & Rosati, LLP Zanker Road Resource Management, Ltd

14 How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action

PUBLIC SECTOR:
City of Campbell City of East Palo Alto City of Foster City City of Fremont City of Gilroy City of Los Altos City of Menlo Park City of Milpitas City of Monte Sereno City of Morgan Hill City of Mountain view City of Newark City of Pacifica City of Palo Alto City of Redwood City City of San Carlos City of San Jose City of San Mateo City of Santa Clara City of Santa Cruz City of Sunnyvale City of union City County of San Mateo County of Santa Clara Town of Los Altos Hills Town of Los Gatos

The investors listed here are sponsors of Joint Venture: Silicon Valley Network and its many various projects and initiatives. They are not responsible for the material contained in this report, which reflects the views of Joint Venture and not necessarily those of its individual sponsors.

How We Can Improve Cell Phone Coverage in Silicon Valley—A Guide for Community Action 15

60 South Market Street • Suite 1000 • San JoSe, California 95113 • Phone: (408) 278-2294 • www.jointventure.org

Established in 1993, Joint Venture: Silicon Valley Network provides analysis and action on issues affecting our region’s economy and quality of life. The organization brings together established and emerging leaders—from business, government, academia, labor, and the broader community—to spotlight issues, launch projects, and work toward innovative solutions.

Acknowledgements Joint Venture’s cell phone coverage initiative grew out of a partnership with the Santa Clara County Cities Association. The project is co-chaired by Ellen Becht of SVB Financial and Dean Warshawsky, member of the Town Council for the Town of Los Altos Hills. The working group includes representatives from local businesses, city planners, and carriers. We gratefully acknowledge valuable technical assistance provided by Parsons Corporation. Seth Fearey, Vice President, COO, and Cell Phone Project Manager Duffy Jennings, Vice President, Communications, and Editor Milly Boyce, Research Assistant Aaron Olson, Research Assistant Karishma Anand, Research Assistant Sterling Hancock, Photographer Produced by TDA Group


								
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