Subject: [NEXTEL-1] FCC Discusses Alternative in 800 MHz Proposal

From: [email-masked]
Date: Thu, 15 Apr 2004 21:46:13 -0400

FCC Discusses Alternative in 800 MHz Proposal
By Donny Jackson
04/15/04 3:02 PM PT

A key component for public-safety entities is Nextel's pledge to pay
$850 million to offset the cost of retuning radios, many of which are
owned by budget-strapped governmental entities.  Many argue that the
cost will be greater than Nextels pledge, but having a certain funding
source is crucial to making a rebanding plan work.

FCC officials have discussed the possibility of substituting 2.1 GHz
airwaves for the 1.9 GHz spectrum Nextel Communications
is seeking as part of the Consensus Plan the commission is considering
to resolve interference problems for public-safety radio
systems operating at 800 MHz.

But sources indicated this option is a longshot at best.

Verizon Wireless last week pledged an opening bid of $5 billion, if the
10 MHz of 1.9 GHz spectrum earmarked to Nextel were to be auctioned.

Combined with the virtual certainty that awarding the spectrum to Nextel
without an auction -- a key component of the 800 MHz rebanding proposal
-- this declaration makes it tougher for the FCC to award the airwaves
to Nextel for $1.5 billion to $3 billion, which has been the estimated
cost cited in numerous reports.

Unacceptable to Nextel

Harlin McEwen, chairman of the communications and technology committee
of the International Association of Chiefs of Police, said multiple
sources told him the FCC had floated the 2.1 GHz idea as an alternative
to the 1.9 GHz.

In fact, Nextel proposed that 2.1 GHz be used in its initial 800 MHz
rebanding proposal in 2001, he said. However, FCC rules
made the spectrum unacceptable to Nextel, which then turned to the 1.9
GHz airwaves, McEwen said.

Indeed, Precursor wireless strategist Rudy Baca said the 2.1 GHz
alternative is largely a moot point. FCC rules allow spectrum
at 2.1 GHz to be used for an offering that includes a terrestrial
component, but the primary use for the spectrum is for satellite
systemssomething Nextel does not own, Baca said.

Continue for Public Safety

Meanwhile, if Nextel does not get spectrum at 1.9 GHz, McEwen said he
fears the interference problem at 800 MHz will continue for public
safety.

The point is, Nextel has agreed to do certain things on the basis that
they get that [1.9 GHz spectrum], McEwen said. If it doesnt happen and
Nextel fixes it anyway, were finebut theyve said they wont.

A key component for public-safety entities is Nextel's pledge to pay
$850 million to offset the cost of retuning radios, many of
which are owned by budget-strapped governmental entities. Many argue
that the cost will be greater than Nextels pledge, but
having a certain funding source is crucial to making a rebanding plan
work.

Without an Act of Congress

Although Verizon Wireless has promised to pay much more for the 1.9 GHz
airwaves than Nextel, auction proceeds are
contributed to the U.S. Treasury and cannot be earmarked for a given
purpose, such as rebanding, without an act of Congress.
If [Verizon Wireless] got this to go to auction and they paid $5 billion
for that spectrum, we have no solution to the problem,
McEwen said.

A Nextel spokesman declined to comment on the 2.1 GHz speculation but
acknowledged that the Consensus Plan, including
the 1.9 GHz spectrum, was proposed as part of a comprehensive solution.
Calls to Verizon Wireless were not returned in time
for this story.

http://www.technewsworld.com/perl/story/wireless/33445.html#
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