Subject: [NEXTEL-1] Stevens says 800 MHz plan must be self financing, auction not necessary

From: Marcelrf <[email-masked]>
Date: Wed, 07 Apr 2004 01:18:31 -0400

Stevens says 800 MHz plan must be self financing, auction not necessary

by Heather Forsgren Weaver

April 06, 2004

WASHINGTON

Sen. Ted Stevens (R-Alaska), chairman of the Senate 
Appropriations Committee, told the Federal Communications 
Commission recently that any plan to solve the public-safety 
interference problem in the 800 MHz band must be self financing, 
and if an allocation of replacement spectrum is necessary, an 
auction is unnecessary.

“Providing static free airwaves free of interference to first 
responders should be first and foremost in your deliberations. 
Any plan you approve to accomplish that goal must be self 
financing in terms of all costs of moving current occupants 
to new spectrum. As the chairman of the Senate Appropriations 
Committee, I can tell you that our committee does not have the 
ability to appropriate any funds for this purpose. Any proposal 
that seeks to divert auction proceeds from the treasury to cover 
the cost of relocation would be treated the same as direct 
spending from the treasury by the Senate Budget Committee. 
Both concepts would score equally against the budget. 
Whoever bears the cost must be willing to provide a guarantee 
that the necessary funds will be available even if they encounter 
financial difficulties or file bankruptcy,” wrote Stevens March 26 
in a letter that was released Tuesday morning.

The letter was released by a public-relations firm supporting the 
Consensus Plan, although Stevens said specifically in his letter, 
“I do not have the technical background to judge the complex 
engineering issues in this case and do not take a position in favor 
of one side or the other.”

Perhaps making the Consensus Plan folks happy is language by 
Stevens saying that an auction would not be necessary.

“It has been suggested to me that rebanding could occur within 
the 800 MHz band without moving anyone to 1.9 (GHz). I hope 
your engineers will consider that option and determine whether 
that could accomplish the objective without causing interference. 
If it cannot, and Nextel Communications Inc. must give up its 
spectrum in the 700 and 800 (MHz) bands to eliminate interference 
to first responders, it must be given replacement spectrum elsewhere. 
As the author of the spectrum auction program, I do not believe 
an auction would be required in this instance,” said Stevens.

Opponents of the Consensus Plan have argued that giving Nextel 
spectrum in the 1.9 GHz band would go against the auction provisions 
of the Communications Act.

The FCC staff recommendation reportedly more closely tracks 
with the Consensus Plan developed by some public-safety advocacy 
groups, private-wireless entities and Nextel. The staff recommendation 
would require Nextel to pay more than the $850 million it said it would 
pay as part of the rebanding agreement. Nextel would pay all of the 
relocation costs plus the difference between that amount and 
“fair-market value” of 10 megahertz of spectrum it seeks in the 
1.9 GHz band. This recommendation was delivered to the commissioners 
March 9. The FCC hopes to vote on rules at its April 15 meeting, but FCC 
Chairman Michael Powell told House appropriators late last month it 
might take a couple of months to come to resolution. 

The Consensus Plan would shuffle the 800 MHz band to eliminate the 
current situation where public safety, private wireless, Nextel and 
cellular carriers are intermingled. In exchange for giving up spectrum 
in the 700 MHz, 800 MHz and 900 MHz bands and for paying to retune 
public safety and private wireless, Nextel has asked for 10 megahertz 
in the 1.9 GHz band. The staff proposal reportedly does not require 
Nextel to relinquish its 700 MHz and 900 MHz spectrum. 

On the other side is the Balanced Approach Plan supported by the 
Cellular Telecommunications & Internet Association and the United 
Telecom Council. The Balanced Approach Plan calls for timely resolution 
of interference at the expense of the interferer, coupled with technical 
rules, notification and coordination procedures to prevent new
interference.

 http://rcrnews.com/cgi-bin/news.pl?newsId=17601

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