Subject: [NEXTEL-1] Where's King Solomon when you need him??

From: Marcel <[email-masked]>
Date: Sat, 17 Apr 2004 23:06:50 -0400

From MRT's Wavelengths 
April 16, 2004

Where's King Solomon when you need him?

Last week, Verizon Wireless pledged to bid at least $5 billion 
for a 10 MHz block of spectrum at 1.9 GHz. That's the same 
spectrum Nextel Communications wants to receive in return 
for the $850 million it has agreed to spend to reband the 800 
MHz spectrum, which is plagued by interference problems. 
The pledge largely was seen by the public-safety community 
as a desperate attempt by Verizon to derail the Federal 
Communications Commission's expected endorsement of the 
Consensus Plan. 

Actually, things still are so unresolved at this point it would 
be a mistake to conclude that the FCC is ready to approve 
the Consensus Plan, according to a commission source. 
"There are active discussions underway and all of the offices 
are trying to work out the best approach," the source said. 
Among the ideas being kicked around is offering Nextel a 
spectrum block at 2.1 GHz (see story below). Then the 1.9 
GHz spectrum that both Nextel and Verizon covet could be 
auctioned. 

Complicating matters for the FCC is that Verizon's bold 
proclamation has gotten the attention of Capitol Hill. 
"There certainly has been Congressional interest" in the 
bid offer, said the source. Don't think for a moment the 
commissioners aren't contemplating -- with a good 
amount of trepidation -- how they might explain to a 
Congressional committee why they tossed away a 
potential $5 billion that would have looked quite good 
as it was being deposited into the U.S. Treasury. 

Verizon's bid also has added to already "significant concern" 
over potential litigation that would be spawned by the 800 
MHz ruling, the source said. There are some who believe 
that telecom law prohibits the FCC from awarding spectrum 
through any means other than an auction. 

"There is no denying that whatever action the commission 
takes, there will be an appeal. We're very mindful of that 
and are trying to choose an approach that not only resolves 
the public-safety concerns, but which also is legally sustainable," 
the source said. "The significance of the $5 billion bid is that it 
underscores that there will be litigation, and if the commission 
does exchange spectrum and give some to Nextel at 1.9 GHz, 
it will have to be prepared to defend that in court." 

Should that occur, the source predicted the FCC would prevail. 
(This is the same guy who said the FCC would prevail over Nextwave,
we saw how wrong he was about that)
"The argument will be that the commission generally has very 
broad authority to resolve interference concerns ... and if it takes 
back spectrum at one band it can exchange spectrum in another 
band. I think there is pretty well settled authority for that." 

While the FCC could well be on solid ground in a court of law 
should it give Nextel the 1.9 GHz spectrum, it would be on very 
shaky ground in the court of public-safety opinion should it fail 
to do so. Nextel would then pull its $850 million pledge off the 
table and the deal would be dead. (Recall that Nextel theoretically 
is operating within the bounds of current FCC rules; if it wasn't, 
all the commission would have to do to fix the interference problems 
would be to institute an enforcement proceeding against Nextel.) 

"The point is, Nextel has agreed to do certain things on the basis 
that they get that [1.9 GHz spectrum]," Harlin McEwen, chairman 
of the communications and technology committee of the 
International Association of Chiefs of Police, told me this week. 
"If it doesn't happen and Nextel fixes it anyway, we're fine -- but 
they've said they won't." 

E-mail me at gbischoff @ primediabusiness.com 

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

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com.  Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/61FxlB/TM
---------------------------------------------------------------------~->

-- 
    "NEXTEL-1 IT'S NOT JUST NEXTEL"
  Note The New address 
Subscribe to Nextel-1: http://www.groups.yahoo.com/subscribe/NEXTEL-1

  "NEXTEL2 FOR iDEN SOFTWARE DEVELOPERS"
Subscribe to Nextel2: http://www.groups.yahoo.com/subscribe/NEXTEL2

  "WIRELESS FORUM HOMELAND SECURITY GROUP"
     The Complete Resource for Wireless Homeland Security.
Subscribe to WFHSG:  http://www.groups.yahoo.com/subscribe/WFHSG

Yahoo! Groups Links

<*> To visit your group on the web, go to:
     http://groups.yahoo.com/group/NEXTEL-1/

<*> To unsubscribe from this group, send an email to:
     [email-masked]

<*> Your use of Yahoo! Groups is subject to:
     http://docs.yahoo.com/info/terms/