Subject: [NEXTEL-1] Why SHOULD Nextel get a spectrum windfall?

From: Marcel <[email-masked]>
Date: Fri, 20 Feb 2004 20:05:08 -0500

MRT Wavelengths 
 
Readers ask:
 Why SHOULD Nextel get spectrum windfall? 

Glenn Bischoff
MRT Magazine

February 20, 2004 

Last week, I shared reader responses to a column I wrote that suggested
the FCC should take whatever time it needs to rectify the interference
problems that plague the 800 MHz band. 

I had promised to share more responses this week but, given the volume,
decided it would be simpler and easier to summarize the consensus
thinking. Though several readers noted public-safety communications
systems that sometimes are plagued by poor designs and under-built
infrastructures are a contributing factor, most are of the opinion that
Nextel is the primary culprit behind the interference problems and
should foot the bill for providing a fix. In fact, responses favored
shutting down Nextel and taking its licenses should it fail to comply. 

Recall that the Consensus Plan would move Nextel from interleaved,
encumbered spectrum to contiguous, unencumbered spectrum within the 800
MHz band that theoretically would be more valuable. It also would
provide the company with additional spectrum in the 1.9 GHz band. The
rival Balanced Approach Plan favored by engineers would avoid rebanding
in favor of technology solutions, primarily cognitive radios that would
seek out non-disruptive frequencies and low-power devices that could
operate on a frequency without a license holder ever knowing it. 

The last thing readers want to see, even those who believe the Consensus
Plan is the more realistic option at this point, is Nextel reaping a
windfall should that plan be adopted. Nextel rival Verizon Wireless, in
a recent filing to the FCC, claimed the value of Nextel's spectrum
holdings would increase by roughly $7 billion in that event (see story
below). Nextel strongly disputes this, an argument strengthened by the
Cingular/AT&T Wireless merger, which likely takes two major bidders for
Nextel's spectrum out of the game. Nevertheless, gaining additional
spectrum in the 1.9 GHz band and moving to unencumbered spectrum in the
800 MHz band equals a big win for Nextel. 

Consensus Plan proponents claim the technology solutions touted by the
Balanced Approach Plan are unrealistic, primarily because cognitive
radios are too expensive and bulky in their current state, and that it
will be several years before they have evolved to the point where they
are feasible for use by public-safety organizations. That's a valid
point, until one considers that it is expected to take several years to
reband. 

But cognitive radios aren't the only technology-driven answer. Solutions
are being deployed in several cities across the country that some
believe have the potential to make the current 800 MHz debate largely
moot. Next week, we'll tell you about them. 

E-mail me at gbischoff @ primediabusiness.com

http://enews.primediabusiness.com/enews/mobileradiotech/mrt_bulletin/current

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