Dear friends of wireless messaging and paging,

La raison d’Être of this newsletter is to serve as a forum for the exchange of ideas and opinions that affect the Wireless Messaging and Paging industries. This week, I am pleased to include a whitepaper, written by Ron Mercer, about the very important topic of maintaining the confidentiality of information transmitted to pagers. Of concern to both Paging Companies and Telephone Answering Service (TAS) bureaus, are the relatively new federal regulations that govern how the privacy of a person's health information must be protected. Ron offers suggestions on this pressing topic and shows how simple steps can be taken to scramble alphanumeric information sent over a paging channel. We all know that today's technology allows for sophisticated encryption and decryption of messages, but we also should know that the economic realities of today's market would preclude anything but the most simple and least-costly approach. Ron also presents a well-thought-out analysis of the advantages and disadvantages of various equipment location possibilities.

Some nominations for the Paging Hall of Fame have come in. I have received a few very interesting comments, like:

• The Hall of Fame is a great idea and the list should include many of the mom and pops that took the risks, worked for next to nothing and made paging grow. A long list of entrepreneurs and not the empty suits that thought they knew everything.
• The Hall of Fame should include those who made positive contributions, not people like ______ who contributed to Paging's demise.
• _____ should also be in the Nice Guy hall of fame!

So please send me your nominations. There has not been enough response yet to justify going ahead with this. Hopefully, more people will be nominated.

There are several more photos in the NOSTALGIA section, of the demolition of the Motorola Paging headquarters building in Boynton Beach, Florida.

WorldCom finally emerged from bankruptcy this week. They are now officially known as MCI— the name of one of the companies that they had acquired. Last month they started cutting an additional 4,000 jobs. The company is now effectively owned by a handful of bondholders who acquired the company's debt during the bankruptcy process. This is the parent company of SkyTel, and the only remaining nationwide FLEX and ReFLEX paging carrier that is not a part of the giant Arch/Metrocall merger.

(Metrocall had previously acquired WebLink (PageMart) and many other companies and Arch had previously acquired PageNet and many other companies as well—our regular readers already know this.)

I have received many helpful messages with more details for the Paging Family Tree. So many in fact, that I am running out of room to put more companies on the tree. I am sure there must be 100 other companies that are not yet shown. One reader has suggested doing it in PowerPoint. This is a good idea and may work. We could include many more details, like people's names, and dates companies were founded and then merged or were acquired, and then offer the file for downloading to all interested parties. The latest revision of the tree follows.

Check out Hark's new "SAFe" product designed to protect paging systems from e-mail SPAM and viruses.

I have been asked to be the moderator of a discussion about the consolidation taking place in the paging industry at the Southeastern Communications Association's Wireless Forum 2004—which will take place in June. Details about the conference follow. I hope to see you there. It should be both fun and informative.

Keeping Messaging and Paging Alive

A new issue of The Wireless Messaging Newsletter gets posted on the web each week. A notification goes out by e-mail to subscribers on most Fridays around noon Eastern US time. The notification message has a link to the actual newsletter on the Internet. That way it doesn't fill up your incoming e-mail account.

There is no charge for subscription and there are no membership restrictions. Readers are a very select group of wireless industry professionals, and include the senior managers of many of the world's major paging and wireless data companies. There is an even mix of operations managers, marketing people, and engineers, so I try to include items of interest to all three groups. It's all about staying up-to-date with business trends and technology.

I regularly get reader's comments, so this newsletter has become a community forum for the paging, and wireless data communities. You are welcome to contribute your ideas and opinions. Unless otherwise requested, all correspondence addressed to me is subject to publication in the newsletter and on my website.

NOTE: This newsletter is best viewed at screen resolutions of 800x600 (good) or 1024x768 (better). Any current revision of web browser should work fine. Please notify me of any problems with viewing. This site is compliant with XHTML 1.0 transitional coding for easy access from wireless devices. (XML 1.0/ISO 8859-1.)

An excellent opportunity for wireless carriers big and small, suppliers, and network providers in the competitive wireless industry to network and learn from one another at the newest resort in Myrtle Beach!

Join us for SCA's Wireless Forum 2004, June 2-4, at the NEW MARRIOTT RESORT AND GRANDE DUNES. The resort has more amenities than any other destination in the Carolinas. Activities include:

• Championship Golf
• Tennis
• Fitness Center
• Tropical Beachfront Pool with Waterslide
• European Spa with Indoor Pool

. . . or the simple but priceless pleasure of sitting on a pristine beach and soaking up the South Carolina sun. Combine these first-class accommodations and excellent conference facilities with the premier wireless and paging conference on the East Coast and make your plans now to attend!

Hotel reservations are currently being accepted for the 2004 conference. To receive the special discounted rate of $129/night, call 843-449-8880 on or before May 3, 2004, and reference SCA or Southeastern Communications Association. Sponsorship and exhibitor opportunities are available. Contact linda@scawireless.com or call 910-452-0006.

DON'T MISS THIS CHANCE TO EXPAND YOUR OPPORTUNITIES IN THE WIRELESS MESSAGING WORLD!

Brad,

To show how much I enjoy the newsletter, I just sent a small donation. Keep up the good work. I am the only local paging reseller left in _________, and your weekly news helps me feel less lonely! I have one small contribution to the Paging family tree _______.

Thanks,

[name on file]

CHRONOLOGY-MCI events from 1983 to present

Tue Apr 20, 2004 04:14 PM ET

NEW YORK, April 20 (Reuters) - The following is a chronology of key events in the history of MCI (WCOEQ.PK: Quote, Profile, Research) , whose legal name was WorldCom Inc.

1983 - Businessmen Murray Waldron and William Rector plan to create a discount long-distance provider called LDDS (Long Distance Discount Service).

1985 - Early investor Bernard Ebbers becomes chief executive officer of LDDS.

1995 - LDDS acquires voice and data transmission company Williams Telecommunications Group Inc. (WilTel) for $2.5 billion cash and changes its name to WorldCom Inc.

1998 - WorldCom completes three mergers: MCI Communications Corp. ($40 billion)—the largest in corporate history at the time—Brooks Fiber Properties Inc. ($1.2 billion) and CompuServe Corp. ($1.3 billion).

1999 - WorldCom and Sprint Corp. (FON.N: Quote, Profile, Research) agree to merge. WorldCom shares peak at more than $64.

2000 - U.S. and European regulators block the proposed merger with Sprint; WorldCom and Sprint terminate their merger agreement.

2002

March 11 - WorldCom receives a request for information from the U.S. Securities and Exchange Commission relating to accounting procedures and loans to officers.

April 30 - WorldCom CEO Bernard Ebbers resigns amid SEC probe of the company's support of more than $400 million in personal loans. Vice Chairman John Sidgmore takes reins.

June 25 - WorldCom fires Chief Financial Officer Scott Sullivan.

June 26 - SEC files fraud charges against the company.

July 8 - Former WorldCom CEO Ebbers tells the U.S. Congress he did nothing wrong and refuses to answer questions. Ex-CFO Sullivan also refuses to testify. Former Salomon Smith Barney analyst Jack Grubman says he attended WorldCom board meetings, but denied having inside information about the company's woes.

July 21 - WorldCom files for Chapter 11, the largest bankruptcy in corporate history.

Aug. 1 - Ex-CFO Sullivan and former Controller David Myers are arrested and charged in a seven-count complaint accusing them of securities fraud and filing false statements with the SEC.

Aug. 28 - A New York grand jury indicts former CFO Sullivan and former director of general accounting, Buford Yates. Prosecutors file notices that they plan to file information against WorldCom's former controller, David Myers and two other WorldCom directors.

Nov. 15 - WorldCom names former Compaq Computer chief Michael Capellas chairman and CEO.

Dec. 17 - WorldCom announces resignation of six of its board members who oversaw the company when it racked up the accounting problems.

2003

March 13 - WorldCom says it would record almost $80 billion in charges to write off the value of goodwill, property, equipment and other intangible assets.

April 14 - WorldCom plans to change its name to MCI upon emerging from bankruptcy and it also appoints Robert Blakely as chief financial officer.

May 19 - WorldCom settles SEC charges stemming from its accounting irregularities.

June 11 - WorldCom's treasurer Susan Mayer and general counsel Michael Salsbury resign.

Aug. 13 - MCI names Rick Roscitt, a former long-term executive of AT&T Corp., as its president and chief operating officer to oversee day-to-day operations.

Aug. 27 - Oklahoma Attorney General files charges against MCI, its former CEO Ebbers and others for violating state securities laws by giving false information to investors. The charges mark the first criminal charges against Ebbers.

Aug. 29 - MCI names five new board members, including distressed debt investor David Matlin, of MatlinPatterson Global Advisers LLC, who has acquired a large amount of MCI bonds.

Sept. 9 - MCI offers a sweetened deal to trade creditors and subordinated creditors to win their backing for a reorganization plan.

Oct. 14 - MCI names Lockheed Martin Corp. (LMT.N: Quote, Profile, Research) executive Nancy Higgins as its chief ethics officer.

Oct. 31 - Bankruptcy court judge approves MCI's reorganization plan, clearing the way for the company to emerge from bankruptcy.

2004

Jan. 26 - Richard Thornburgh, a former U.S. attorney general appointed by the bankruptcy court as an independent examiner, issues report that says MCI is entitled to sue Ebbers, Citigroup and Andersen for their roles in the scandal. KPMG also faces potential claims, it says.

Feb. 25 - MCI gets a two-month extension to file audited financial statements and emerge from bankruptcy protection.

March 2 - Sullivan pleads guilty to criminal charges of conspiracy, fraud and making false statements about WorldCom's financial health to regulators.

Sullivan also resolved charges filed against him by the SEC and agreed to a lifetime ban of being an officer of a publicly traded company.

Sullivan agrees to cooperate in the government's probe against former Chief Executive Bernard Ebbers.

March 3 - Ebbers pleaded innocent to criminal charges related to MCI's $11 billion fraud. Charges against him included fraud, conspiracy and making false statements in connection with the accounting scandal.

March 12 - MCI settles state charges of securities fraud with Oklahoma attorney general in return for a promise to create new jobs in the state and help with the prosecution of former executives including Ebbers.

March 26 -MCI reveals plans to cut 4,000 jobs or 7 percent of its workforce to reduce costs amid increased competition.

March 30 - European Commission faces questions over its banning of WorldCom's efforts to buy Sprint in 2000. MCI argued against the decision on the long-defunct proposal to get rid of a precedent that could prevent future mergers.

April 2 - The company agrees to pay $27 million to settle charges that it overbilled the U.S. government for telephone services.

April 20 - MCI exits bankruptcy, minus the infamous WorldCom name, and with about $5.7 billion in debt and $6 billion in cash. Chief Executive Michael Capellas says MCI will target wireless and data services for business and develop an Internet phone service for consumers.

Source: REUTERS

Investor Slim owns large stake in MCI

The Associated Press
4/21/2004, 6:34 p.m. ET

NEW YORK (AP) — Mexican billionaire Carlos Slim owns more than 10 percent of MCI Inc.'s post-bankruptcy stock, he revealed in a regulatory filing Wednesday. Slim, known as Latin America's richest man, owns 42.6 million shares of MCI, the former WorldCom, according to the filing with the Securities and Exchange Commission.

MCI left bankruptcy on Tuesday, and the telecommunications company began distributing about 320 million shares to creditors, which would give Slim a stake of about 13 percent. Shares of MCI were at $17.35 in late trading Wednesday, down 15 cents, or 0.9 percent, on the over-the-counter market, where they trade on a "when-issued" basis.

Slim has other big telecommunications investments, including Telefonos de Mexico SA and Global Crossing Ltd. He also controls CompUSA and presides over banking, real estate and tobacco and railroad companies with annual revenues exceeding $20 billion. MCI, which is based in Ashburn, Va., said last year that MatlinPatterson Asset Management would have the largest post-bankruptcy stake, at 17 percent.

Source: mlive.com

A SIMPLIFIED ENCRYPTION TECHNIQUE FOR LESS DEMANDING PAGING APPLICATIONS

Project: #04-04-01
Issue: 1.0
Date: April 19, 2004
By: Ron Mercer

1 General:
Considerable work is currently underway to develop high security encryption techniques for use in the radio paging industry. To date, most of this work has concentrated on developing very sophisticated techniques which could withstand serious attempts at surreptitious deciphering. Maximum message security is clearly required by specific user groups wherein clandestine organizations or individuals could be motivated to spend considerable time, effort and money in order to decipher messages and thus intercept vital information. Law enforcement, major financial institutions, national security officials are examples of user communities which both need and can afford these more sophisticated techniques.

In certain other applications, however, the encryption need is less stringent. For example, the responsibility for encryption placed on organizations providing paging service to the hospital/medical services communities that are governed by the recently introduced Health Insurance Portability and Accountability Act (HIPAA) which contains rules to protect patient privacy.

In addition to hospitals and health care organizations, which are directly involved in HIPAA issues, the patient privacy requirement is of concern to the TAS industry for which the relaying of messages on behalf of the medical community is an important business activity.

A preliminary reading of the HIPAA requirements leaves a clear impression that encryption is not mandated by HIPAA in the health care environment. To comply with the letter of the law, only “reasonable” safeguards, policies, measures and procedures need be in place to protect patient privacy from “incidental” or “casual” disclosures.

The health care community, as well as the TAS organizations which serve them, however, have expressed a desire to be proactive with regard to HIPAA patient privacy requirements rather than assuming a “best case” interpretation. This proactive position suggests the provision of some form of encryption, but the costs and complexities of the sophisticated techniques being developed and deemed appropriate for law enforcement and national security organizations go beyond the TAS and hospital community’s ability to support.

In an era when the general populace has abandoned paging in favor of cellular telephony, the hospital community continues to be a very important user of radio paging and it is certainly in the best interests of the paging industry to accommodate the needs of this community.

Accordingly, a less stringent encryption technique appears to be required.

2 Considerations for Encrypted Paging in Hospitals:
In light of currently recognized needs, the following encryption criterion is believed to be important within the health care community. Ideally, the encryption technique employed should:

1. Be possible to implement in a wide variety of pagers (ideally all pagers);
2. Be low cost to include in one-way pagers;
3. Provide “reasonable” protection against “incidental” message disclosure;
4. Allow encryption keys to be installed reliably on one-way pagers during the Cap Code/RF channel pager programming action, (OTA techniques are undesirable);
5. Require minimal administrative support;
6. Not impose heavy computing requirements within compliant pagers;
7. Not reduce pager battery life;
8. Not reduce message reception reliability;
9. Not increase message delivery latency;
10. Be independent of, and usable with, any digital paging protocol in current use;
11. Be an “open” protocol not subject to licensing fees.

3 A Suggested Encryption Technique:
Based on the foregoing criterion, a technique has been hypothesized and is submitted here for consideration. The suggested encryption technique would use adaptations of the conventional ASCII Code Tables. Appendix A details a standard ASCII Table. Appendix B details a typical suggested ASCII Table reorganized such that message text would be undecipherable by any receiving device that included a standard rather than the appropriate modified ASCII Table. More than 100,000 code reorganizations are possible within the conventional ASCII structure with approximately 9,000 reorganizations making messages very difficult to decipher. This would provide a set of encryption “keys” sufficiently rich for purposes intended here.

Also, because several “non–printable” characters within the ASCII character set are never transmitted to pagers, these elements of the standard ASCII Table have been reassigned to provide multiple choices for frequently used letters and functions (e.g. “space” the vowels A, E, I, O & U). So as to increase the difficulty of deciphering encrypted transmissions based on frequent reappearances of often used characters, the encryption code generating algorithm would be designed to randomly select from these multiple choices.

Appendix C-1 details a typical message and Appendix C-2 details the message encrypted as it would be appear if received by other than the appropriately reorganized ASCII Table.

4 Summary & Preliminary Conclusions:
Although the encryption technique suggested here would not produce an “uncrackable” code, it would protect against “incidental” or “casual” deciphering of private messages which is the level of protection required in many applications. Moreover, the suggested technique offers a number of distinct benefits. The technique is believed to:

• Be independent of, and usable with, any digital paging protocol in current use;
• Be easily implement in a wide variety of pagers;
• Be possible to be included in most (if not all) one-way pagers at low cost;
• Provide “reasonable” protection against “incidental” message disclosure;
• Allow encryption keys to be installed reliably on one-way pagers (OTA techniques are not required);
• Require minimal administrative support;
• Not impose heavy computing requirements within compliant pagers;
• Not reduce pager battery life;
• Not reduce message reception reliability;
• Not increase message delivery latency;
• Be an “open” protocol not subject to licensing fees;
• Be fully transparent to paging system elements including: terminals, controllers, networks and transmitters.

Accordingly, it is recommended that the suggested technique be more fully evaluated as a possible solution to the encryption needs of a sizeable class of paging services, particularly those serving the health care community.

Appendix A

Standard ASCII Code Table

Appendix B

ASCII Table Modified to Support Encryption

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