Subject: [NEXTEL-1] CCAGW: FCC on Verge of Giving Away Billions

From: [email-masked]
Date: Tue, 13 Apr 2004 16:03:44 -0400

CCAGW: FCC on Verge of Giving Away Billions 

Verizon to Offer $5 Billion for Spectrum if Auction were Held

WASHINGTON, April 13 /PRNewswire/ -- The Council for Citizens Against 
Government Waste (CCAGW) today asked the Federal Communications 
Commission (FCC) to scrap its plan to swap airwave spectrum with 
Nextel Communications at a below-market price.  The so-called 
Consensus Plan that the FCC may approve as early as Thursday aims to 
reduce Nextel's interference with 800-megahertz emergency airwaves 
and in exchange provide the company more efficient and more
valuable 1.9 gigahertz spectrum.  The plan would circumvent FCC 
policy and federal law that requires new spectrum to be auctioned off 
to the highest bidder.  Last week, Verizon Wireless stated that it 
would start its bid at $5 billion if an auction for the 1.9 GHz 
spectrum was held.

    "Verizon's $5 billion bid shows just how much money the 
government is passing up, money that rightfully belongs to the 
taxpayers," CCAGW President Tom Schatz said.  "This is a sweetheart 
deal for Nextel that puts rival carriers at a competitive 
disadvantage and hurts consumers and taxpayers."

    The value of the 1.9 GHz contiguous spectrum has been estimated 
to be worth as much as $7 billion if sold at auction.  However, 
Nextel's plan would require the company to pay only $850 million and 
reband the 800 MHz spectrum. It has been reported that several FCC 
commissioners already support the Consensus Plan but would require 
Nextel to pay an additional $1.3 billion to $1.5 billion.  That would 
still be less than half of Verizon's starting bid of $5 billion.

    "It is ironic that this plan could give Nextel nearly a multi-
billion dollar windfall to 'correct' an interference problem it 
caused in the first place," Schatz continued.  "While the plan 
purports to solve a public safety issue, it really is an attempt to 
obtain large portions of valuable spectrum at no cost."

    While Nextel proposes to relocate public safety bands elsewhere, 
the carrier admitted in its FCC filing that its plan would still not 
end the interference.  It is estimated to cost an additional $1.5 
billion to $2.5 billion to remedy the interference problems.

    "The use of competitive bidding for electromagnetic spectrum has 
returned some $14.4 billion for the taxpayers since 1994," Schatz 
concluded.  "An FCC decision could be issued this week.  Hopefully, 
the agency will adopt another proposal that addresses the public 
safety issue without ripping off taxpayers. If not, Congress should 
intervene.  Considering the $521 billion deficit, the government 
cannot afford to simply give away a valuable asset such as spectrum."

    The Council for Citizens Against Government Waste is the lobbying 
arm of Citizens Against Government Waste, the nation's largest 
nonpartisan, nonprofit organization dedicated to eliminating waste, 
fraud, abuse, and mismanagement in government.

http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=SVBIZINK1.story&STORY=/www/story/04-13-2004/0002150760&EDATE=TUE+Apr+13+2004,+03:08+PM

------------------------ 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/