A.3 Multichannel Multipoint Distribution Services
A.3.2 MMDS history
MMDS takes advantage of a microwave transmission technology known as wireless cable, which is a microwave technology used to deliver analog cable television service over the air to rural areas that cannot be served economically by wired cable.

The areas served by wireless cable were too sparsely populated to generate strong revenue as reflected in the lack of financial success for wireless cable operators. But the success of DBS and continued progress with digital technology (such as MPEG, digital modulation techniques, and advances in semiconductors) changed the perception of microwave from simply a rural delivery system to a system that could be used in urban areas. Telephone companies view microwave as a fast-start service to allow video distribution that can compete against cable and DBS.

In 1996, the FCC conducted spectrum auctions for MMDS. The FCC auctions offered 200 MHz in each of the nation's 493 basic trading areas (BTAs). A BTA represents a contiguous geographic market. BTA boundaries are drawn on county lines. The counties are aggregated by considering physical topography, population, newspaper circulation, economic activities, and transportation facilities (such as regional airports, rail hubs, and highways). The BTA concept was licensed by the FCC from Rand McNally.

MMDS frequencies fall in the range of 2.5t of a transmitter is 30 to early wireless cable operators, the operator can derive an aggregate of approximately a gigabit (Gb) of bandwidth, which is sufficient bandwidth to offer 150. This is channel capacity to DBS. Note that the bit rate available to the MMDS operator is comparable to the bit rate available from DBS systems, even though a narrower spectrum is available. This is because MMDS uses more aggressive modulation techniques. DBS has 500 MHz of bandwidth using QPSK modulation (2 b/Hz). MMDS has 200 MHz using QAM-64 modulation (6 b/Hz). After overhead bits and error correction, both DBS and MMDS can achieve nearly 1 Gb of bandwidth. The auction rules provided no regulations regarding spectrum use. Operators are free to decide whether to offer Internet access, TV, or a combination of the two.