Subject: [NEXTEL-1] Opponents describe Nextel's proposal (Plan Scam 02-55) as a disaster

From: [email-masked]
Date: Thu, 10 Apr 2003 10:05:11 -0400

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Nextel Pushes, Competitors Push Back In 800 Rebanding

Wednesday, April 09, 2003 19:12 ET

Apr 09, 2003 (Wireless Data News/PBI Media via COMTEX) -- Interference with
public-safety radio systems could be a result of some commercial wireless
services being a victim of their own success. However, most commercial wireless
operators expect that a solution backed by Nextel Communications [Nasdaq: NXTL]
would make them a victim of Nextel's regulatory success.

The Federal Communications Commission is considering a proposed rulemaking
(docket WT 02-55) intended to reduce interference with public safety. The
proposal would consolidate public safety systems in the 800 MHz band and re-
tune private wireless operations within that band or grant them twice as much
bandwidth if they move to the 900 MHz band, using frequencies Nextel would
relinquish.

In addition to Nextel, public-safety groups and the Private Wireless Coalition,
backers of the proposal include the Personal Communications Industry
Association; the Industrial Telecommunications Association; and railroad,
airline, energy and mining industry groups.

Nextel's 700 MHz guard-band holdings would be re-designated for public- safety
use under the proposal, while it also would gain spectrum in the 800 MHz band as
well as in the 1900 MHz band. In addition, the Reston, Va.-based carrier would
provide $850 million to pay for relocating public safety and private wireless in
the 800 MHz band.

According to Nextel, its service causes interference with public-safety systems
because of some 25-year-old spectrum allocations that have Nextel and other
specialized mobile radio system providers as well as cellular and PCS providers
operating in frequencies near those of public-safety systems. "This was a good
decision by the commission at the time," Robert F. Foosaner, Nextel's senior
vice president for regulatory affairs, tells Wireless Data News. But it is "a
licensing scheme [the FCC] will never repeat again," adds Foosaner, who was the
bureau chief involved with spectrum allocation for the FCC when the scheme was
adopted. "It ended up being a disaster."

He says, "Everything kind of goes along for a decade, but then cellular really
starts to grow, Nextel really starts to grow and public safety really starts to
grow."

However, opponents describe Nextel's proposal as a disaster, saying their growth
isn't causing the problem. Their primary arguments are that the proposal
requires other parties to move to solve the interference Nextel is causing, and
that Nextel gains 10 MHz of valuable spectrum in the 1900 MHz band.

"We don't want to have to pay for someone else's problem, and we don't want
someone else to get an unfair advantage at our expense," says Mark Tuller,
Verizon Wireless' vice president and general counsel.

In addition to Verizon Wireless, opponents of the proposal include the Cellular
Telecommunications & Internet Association, and service providers Alltel
Communications [NYSE: AT], AT&T Wireless Services [NYSE: AWE], Cingular
Wireless, Southern LINC, Sprint [NYSE: FON, PCS] and US Cellular [AMEX: USM].
Boeing [NYSE: BA], which owns 1900 MHz spectrum licenses, and technology vendor
Motorola [NYSE: MOT], which supplies the handsets and network technology for
Nextel's service, also oppose the proposal, as do the cities of New York,
Philadelphia and San Diego, the King County (Wash.) Regional Communications
Board, Michigan Department of Information Technology, National Association of
Manufacturers, National Rural Electric Cooperative Association, United Telecom
Council and Edison Electric Institute.

Nonetheless, Foosaner expects the FCC to adopt the proposal because it would
solve the problem, whereas no other proposal has been made that would provide a
resolution as rapidly. He expects an order in May or June.

"Why is it so controversial?" he says. "Nextel is turning in over 10.5 megahertz
of spectrum. Nextel will now provide up to $850 million to retune people. Nextel
wants 10 megahertz back at [1900 MHz]. Our good friends in the cellular
community are apoplectic. They don't want Nextel to get [1900 MHz] spectrum.
Their opposition, even though we remove them causing interference, is strictly
anti-competitive, and I believe it's seen that way."

>>Leigh Horner, [email-masked]; Jeffrey Nelson, Jeffrey.
[email-masked].<<

These charts show the existing U.S. allocation in the 800 MHz band, and the
proposal from the Private Wireless Coalition--Nextel Communications and its
allies in public safety and private wireless groups--for new allocations in
order to eliminate interference with public safety radio systems. The proposal
concentrates public safety operations in a contiguous band, 806-811MHz on the
uplink side and 851-856 MHz on the downlink.

Existing Allocation Mobile and Control Station Transmit Frequencies

700: Public Safety
806-809.75: General Category (channels 1-150)
809.75-816: Public Safety (70 channels, 1.75 MHz) Industrial/Land Transportation
(50 channels, 1.25 Mhz) Business (50 channels, 1.25 MHz)SMR (80, 2 MHz)
816-821: Upper 200 SMR (channels 401-600)
821-824: NPSPAC Public Safety (230 channels, 12.5 kHz)
824-835: Cellular block A

700:
806-809.75: 851-854.75
809.75-816: 854.75-861
816-821: 861-866
821-824: 866-869
824-835:

Base Station Transfer Frequencies

Private Wireless Coalition Proposed Allocation Mobile and Control Station
Transmit Frequencies

700: Public Safety
806-809: NPSPAC Public Safety (channels 1-200, 6 MHz paired)
809-816: Business, Industrial/ Land Transportation, High Site SMR/Public Safety
Interleaved (channels 121-400, 14 MHz paired)*
816-821: Low Site, Low Power Digital SMR (channels 401-600, 10 MHz paired)
821-824: Low Site, Low Power Digital SMR (channels 601-720, 6 MHz paired)
824-835: Cellular block A

700:
806-809: 851-854
809-816: 854-861
816-821: 861-866
821-824: 866-869
824-835:

Base Station Transfer Frequencies * 814-816 and 859-861 will be guard band for
campus-like systems while allocated in same license groups as remainder of block

[Copyright 2003 PBI Media, LLC. All rights reserved.]

Wireless Data News, Vol. 11, No. 7 [Copyright 2003 PBI Media, LLC. All rights
reserved.]

Copyright 2003 PBI Media, LLC. All rights reserved.

-0-

Public Companies Associated
with this story:

NEXTEL COMMUNICATIONS, INC. (NASDAQ NM: NXTL)

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