Subject: [NEXTEL-1] Scam Plan Revisited

From: [email-masked]
Date: Sat, 24 Apr 2004 20:47:21 -0400

Scam Plan Revisited
FCC May Ask Nextel To Accept Alternative 
 
By Yuki Noguchi
Washington Post Staff Writer
Saturday, April 24, 2004; Page E01 

The Federal Communications Commission is considering substituting a 
less valuable block of spectrum for what was previously proposed in a 
swap designed to minimize Nextel Communications Inc.'s radio 
interference with public-safety communications systems.

The Reston-based cellular carrier has offered to put up $850 million 
to rearrange positions with public-safety and other private wireless 
carriers around the country, but that plan has proved controversial 
with Nextel rivals, who say any swap involving new spectrum amounts 
to a "giveaway" of public resources.

The FCC, which has already voted to approve the broad outlines of 
Nextel's rearrangement plan, has proposed increasing the amount the 
company should pay. According to sources close to commissioners, the 
FCC is also considering other options, such as moving Nextel to a 
different frequency band.

In its original white paper filed with the FCC two and a half years 
ago, Nextel considered moving its cell-phone traffic to the 2.1 
gigahertz airwaves, which the FCC now is considering for Nextel. But 
the FCC later presented the option of moving to the 1.9 gigahertz 
band, which is considered more desirable because it is closer to 
where other cellular carriers operate. 

Also, most cellular equipment is already made to transmit in that 
range, and there are fewer existing occupants that would have to be 
moved to another band.

Verizon Wireless, the most vocal critic of Nextel's swap plan, would 
still object to giving Nextel any spectrum without allowing other 
carriers to bid in an auction, spokesman Jeffrey Nelson said.

Verizon Wireless valued the spectrum in the 1.9 gigahertz band that 
Nextel wants at more than $7 billion, and it offered a starting bid 
of $5 billion on that spectrum.

"I think [the FCC's] basic dilemma is that Nextel did a masterful job 
of forging an alliance with the public-safety community -- and now 
there's a widespread view that significant steps need to be taken to 
fix the interference problem," said Rebecca Arbogast, an analyst with 
Legg Mason Wood Walker.

To date, Nextel is the only party that has offered to resolve the 
interference with public-safety systems, she said, and Nextel can 
argue that any changes to its desired plan could delay the whole 
process.

Indeed, on Thursday evening, Nextel filed comments with the FCC 
objecting to a move to the 2.1 gigahertz spectrum, citing potential 
delays.

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