FCC Approves Next Generation Transportation Technologies
 
March 29, 2004
 
George Wheeler - Washington

The Federal Communications Commission (FCC) recently granted initial regulatory approval for a new generation of high-tech transportation technologies that could fundamentally alter America’s transportation landscape. The FCC rulemaking, which gives the transportation industry preliminary approval to begin using cutting-edge communications systems, furthers a national initiative to incorporate technology and advanced electronics into the nation’s surface transportation infrastructure. These new communications technologies are expected to fundamentally improve transportation safety, decrease traffic congestion, facilitate the reduction of air pollution, conserve vital fossil fuels and improve product shipping and travel-related retail services.

Under the FCC’s new rules, passenger, commercial and emergency vehicles can be equipped with ground-breaking, automated communications technology to promote safe and efficient travel. The new communications technologies, referred to by regulators as Intelligent Transportation Systems (ITS) or more specifically Dedicated Short Range Communications Services (DSRCS), are anticipated to significantly improve transportation safety and efficiency.

For example, drivers, will benefit from “real-time” warnings of approaching and nearby vehicles as well as advanced notice of dangerous road and weather conditions, construction activities and the approach of trains to highway rail crossings. These “smart” technologies will help to prevent accidents by creating an automated vehicle-to-vehicle, and vehicle-to-road, bridge or tunnel “dialogue,” which can help drivers anticipate and steer clear of problems before they occur.

On the retail front, drivers stopping for gas at a rest area or lunch at a drive-through may no longer need to use cash or a credit card because the transaction will be completed seamlessly by DSRCS technology which processes the transaction automatically. Likewise, drive-through retailers will enjoy faster moving lines, instant identification of highly-valued repeat customers and even improved inventory management.

Warehouse professionals and motor carriers will also benefit from the FCC’s decision. DSRCS technologies will simplify deliveries as trucks instantly recognize a vendor or warehouse’s current inventory needs and automatically transmit transactional information such as delivery date, quantity and other critical sales data. In addition, the technology will allow automated, instantaneous vehicle inspections by law enforcement and border personnel and will give dispatchers instantaneous data showing precise truck locations, speed and intended destination, all of which should contribute to more efficient deliveries.

State and municipal transit authorities will benefit from sophisticated, “real-time” data showing precise train and bus locations, speed and intended destination as well as up-to-the-minute consumer demand for transit services and warnings of dangerous conditions. Such information might enable automated train operations which optimize system performance by resolving multiple train conflicts and diverting passengers away from areas affected by system problems or public safety threats.

The FCC’s recent rulemaking, however, is only the first step in developing the federal regulations which will determine how these technologies may be used in everyday commerce. Much work still needs to be done to fully implement these superior technologies including additional FCC rulemaking proceedings. Regulators hope the FCC’s initial DSRCS regulations will foster the implementation of an efficient, standardized transportation communications network, but in order for the system to succeed, the final regulatory framework has to make economic, technical, and operational sense. Involvement by industry is critical to ensuring that the FCC’s final regulatory framework creates incentives for investment. A sound regulatory environment could provide an enormous opportunity for all businesses in the chain of commerce, so interested parties should be actively involved as the FCC addresses the remaining regulatory issues surrounding these technologies.

Holland & Knight’s telecommunications practice has a long history of helping companies navigate and influence the regulatory process in order to capture emerging technology’s economic benefits. We would be pleased to help you understand the FCC’s future plans in this area.

For more information, e-mail George Wheeler at george.wheeler@hklaw.com or call toll free, 1-888-688-8500.