J. David Derosier, CEO, and Geoffrey W. Bobsin, COO, of Cell Block Technologies Inc., hold the device they plan to market to the federal government. (Laurie DeWitt - Washington Techway) _____Washington Techway_____ • Current Issue • Cover Story: Back to School • Subscribe Under the Hood Cell Block Technologies 4031 University Dr., Suite 200 Fairfax, VA 22030 703-277-7703 Web site: www.cell-block-r.com Founded: July 2001 CEO: J. David Derosier Employees: seven; three in Fairfax and four in Ottawa, Canada Funding: $200,000 in self-funding, $25,000 from the Canadian Research Council. Applied for $1 million from U.S. defense and counter-terror agencies and seeking $6 million in venture capital. A Look Back Sphere Software Columbia Date profiled: Aug. 20, 2001 Sphere Software has moved out of Howard County's NeoTech incubator and is on track to be profitable by the end of the year, according to founder and CEO Dave Glock (right). Sphere, which develops XML-based software for information management, raised $400,000 in venture capital last November. The company now has seven full-time and five part-time employees. _____Government IT News_____ • 'Talking' Tax Forms For Blind Developed (The Washington Post, Aug 30, 2002) • OMB Puts A Freeze On Tech Spending (The Washington Post, Aug 24, 2002) • CACI Plans Acquisitions To Bolster Space Ops (Associated Press, Aug 26, 2002) • More Government IT News _____Washtech Section_____ • More Headlines E-Mail This Article Printer-Friendly Version Subscribe to print edition

By Ben Hammer
Washington Techway Staff Writer
Friday, August 30, 2002; 7:46 AM

When an enjoyable dinner at an ex- pensive restaurant was ruined by cell phone chatter, J. David Derosier came up with the idea of developing a technology to block cell phone signals.

"Cell phones are being abused," says Derosier, co-founder and CEO of Fairfax-based Cell Block Technologies. "It's just a matter of time with or without our help that something is done."

Derosier forecasts a commercial market of roughly a half a billion dollars over the next three to five years from places such as restaurants and movie theaters to hospitals, where cell phone signals can interfere with medical devices. Government agencies and businesses that want to block cell phone signals in secure facilities to protect classified information or trade secrets could generate another $40 million to $60 million in sales, he estimates.

But there's one big problem: The Federal Communications Commission has ruled that it's illegal to block the wireless spectrum. "If it is a device designed to interfere with cellular service, then it's illegal," says Julius Knapp, the FCC's deputy chief of engineering, who has not reviewed Cell Block's technology. The ruling "doesn't apply to government use of technology in a security setting," he adds.

Derosier says Cell Block will bide its time while it develops a strategy for gaining regulatory approval. The plan is to start with the security market and work outward. "We believe that if we did absolutely nothing, in time that market will open up," he says. "We have a number of avenues that we're exploring with the FCC."

But look for the wireless industry to vigorously oppose any attempts to change the FCC's rules. "What we're seeing here is something similar to a person choosing to block the street with a barricade because they don't like the noise in their own back yard," says Travis Larson, a spokesman for the Cellular Telecommunications & Internet Association.

Cell Block's unit is implanted into a device that resembles a fire detector. Each unit can block out signals from floor to ceiling in a 100-square-foot area. The device works by tricking a cell phone into believing it's the best "tower" to communicate with. All blocked incoming calls go to voice mail and can be retrieved as soon as the phone's owner leaves a blocked area.

The company ultimately hopes to expand its signal blocking technology to other wireless platforms such as Bluetooth and wireless application protocol-enable devices.

Derosier says Cell Block's product will have "provisions for emergency phone calls," though details have yet to be worked out.

Cell Block, which Derosier started with $200,000 of his own money, presented its business plan at the Mid-Atlantic Venture Association's annual venture fair in May, seeking $6 million in funding. Derosier says he has talked with six venture capital firms since then, though he declines to identify them.

With a management team that includes one retired two-star U.S. Marine Corps general, a retired Canadian general and a former high-ranking CIA official, Cell Block draws on a wealth of experience and contacts. The company's business development offices are located in a George Mason University incubator with its research facilities in Ottawa.

Derosier says that in addition to securing buildings, the technology could be used to prevent the detonation of explosive devices by remote control, for example in areas visited by dignitaries. Cell Block has signed a contract with the U.S. Bureau of Prisons to test the system to prevent prisoners from using smuggled cell phones to coordinate drug sales or violent activities. The company also is conducting beta tests for the Defense Information Systems Agency, which runs Defense Department communications networks. Cell Block charges customers a one-time fee of between $4 and $5 per square-foot of coverage, Derosier says. A three-floor, 30,000-square-foot office space, for instance, would cost $108,000 to cover.

"There's definitely a demand for it," says Michael King, a wireless analyst for Gartner Dataquest. "But people have paid billions of dollars for these frequencies and you can bet they'll fight pretty hard against anyone who attempts to block them."