Subject: [NEXTEL-1] Rhetoric Clouds 800 MHz

From: [email-masked]
Date: Thu, 15 Apr 2004 12:42:13 -0400

Rhetoric Clouds 800 MHz 

Arguments over spectrum swap 
may drown out valued voices for the FCC

By Mark Rockwell
April 15, 2004
Wireless Week

WASHINGTON

The high-profile slugfest between opponents of 
Nextel Communications' 800 MHz spectrum swap 
and its advocates may have hurt both sides in FCC 
offices and could have been a factor in slowing a 
final decision.

As the commission closes in on a decision on how 
to re-arrange the 800 MHz spectrum to accommodate 
public safety and commercial traffic, the din of 
last-minute lobbying reached a crescendo. 

Rumors concerning how the FCC will handle the issue swirled as press
reports said three of the five commissioners were leaning toward
requiring Nextel to pay almost $2 billion – twice the $850 million it
had originally proposed – to reorganize the 800 MHz spectrum. Details
about how much the company would pay and how it would make the payments
to the agency weren't disclosed. Nextel officials declined to comment. 

The reports probably originated with FCC commissioners firming up a
final proposal that might be voted on during the commission's April 15
meeting, said one observer. The commission has to issue a public
statement on the proposals it plans to address at each of its formal
meetings. The "sunshine" agendas, as they're called, can be issued as
late as a week before the official FCC meeting. The items that are
placed on the agenda can be removed at will. However, if an item makes
it onto the commission's agenda through to the actual meeting, it is
rarely voted down.

Some industry insiders speculated the FCC will adopt a form of Nextel's
plan whereby Nextel will pay to move public safety and private wireless
users currently at 800 MHz to other frequencies and pay for the 10 MHz
at 1.9 GHz it would receive in exchange for its spectrum. 

The latest lobbying din hasn't really helped efforts to resolve the
interference problems. Verizon Wireless filed a petition asking the FCC
to "expedite actions to auction off 1.9 GHz spectrum" that could be
ceded to Nextel in that company's proposed spectrum swap for 800 MHz.
Verizon Wireless wants the government to re-assign 1910-1915 MHz and
1990-1995 MHz for licensed PCS services, adopt broadband PCS service and
licensing rules and auction the spectrum bands on a paired basis, and it
said it was willing to pay $5 billion for the same spectrum Nextel would
get for $2 billion.

The lobbying from law enforcement agencies also heated up as each side
tried to out-do the other with public safety organization endorsements.
Although most lawmakers are keeping their distance from the tangled
issue as Election Day approaches, some are getting into the act.

Rep. Vito Fossella, R-N.Y., in a letter to FCC Chairman Michael Powell,
said Nextel's pledge to help reband equipment and handle other
logistical issues might be $1 billion short. Fossella also forwarded a
few letters from the Fraternal Order of Police and the Federal Law
Enforcement Officers Association raising concerns about Nextel's plan. 

Backers of the Nextel proposal also sent their fair share of letters to
the White House and the FCC in the last few weeks. 

Sen. Ted Stevens, R-Alaska, chairman of the Senate Appropriations
Committee, seemed to quietly weigh in on Nextel's side in a letter to
FCC Chairman Michael Powell saying Nextel should get replacement
spectrum if it's forced to give up some of its current spectrum
holdings.

Stevens was careful to say that he was far from the expert in such
matters and the decision was ultimately the commission's. "Given the
complexity of the issues involved and the importance of the homeland
security considerations, I believe the FCC has the expertise to judge
the relative merits of the various positions," he said. 

Without committing to "one side or the other," Stevens told Powell that
any plan that would solve the interference problems in the 800 MHz bands
would "have to be self-financing." However, he added, if Nextel has to
give up spectrum at 700 MHz and 800 MHz, the company should get
replacement spectrum elsewhere.

Meanwhile, the Law Enforcement Alliance of America urged Congress to
tell the FCC to adopt the so-called consensus plan advocated by Nextel.
Additionally, The Consumer's Voice, an Illinois-based consumers
organization, backed the plan, as has the Association for Public
Safety-Communications Officials (APCO). Verizon Wireless pointed out
that APCO received a $3.7 million grant from Nextel in 2002 to help
state and local governments update their communications systems.

It's those kinds of details that could be preventing needed
Congressional and White House heavyweights from offering their opinions
on the issue, says one top FCC official. Congress oversees and provides
funding to the FCC and approves all commissioner appointments. Lack of
input from major figures on Capitol Hill means that politically,
commissioners could fly into a storm of criticism if they "guess" wrong.
"There comes a time when posturing on an issue doesn't help regulators,"
says one long-time D.C. lobbyist.

The FCC source speculated that all the rhetoric could have had a
chilling effect for some high-profile lawmakers' coming down on one side
or the other.

http://www.wirelessweek.com/article/CA410670?spacedesc=Departments&stt=000

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