Subject: [NEXTEL-1] FCC Won't Let Schools Sell Airwaves- Small Companies See Benefit as Leasing Will Still Be Allowed

From: NEXTEL-1
Date: Fri, 11 Jun 2004 01:56:11 -0400

FCC Won't Let Schools Sell Airwaves- Small Companies See Benefit as
Leasing Will Still Be Allowed

By Yuki Noguchi
Washington Post Staff Writer
Friday, June 11, 2004; Page E05

The Federal Communications Commission decided yesterday not to allow
educational institutions to sell their spectrum licenses, but the agency
will allow them to continue leasing the valuable airwaves for commercial
use, and it will move users around to reduce interference.

The decision will benefit Nextel Communications Inc., which holds
neighboring spectrum, and wireless start-ups eager to lease space for
phone calls and high-speed Internet traffic.

In adopting the new rules, the FCC said it was promoting more efficient,
shared use of a valuable public resource for both commercial and
public-interest purposes.

"I think this is a victory for schools and university and church groups,
and for technology, too," said Commissioner Michael J. Copps, who
opposed sale of the airwaves. "This is a part of the spectrum that is
specifically preserved for educational use."
Currently, the airwaves are used primarily by about 1,200 educational
institutions, from the University of Colorado and Stanford University to
Catholic schools, to carry Internet traffic or broadcast videos for
distance learning.

"While a sale would have been privately beneficial" to some of those
institutions, it would not be in the public interest to turn over the
airwaves to companies, said Edwin N. Lavergne, an attorney for the
Catholic Television Network, which broadcasts educational programming
using the channels.

Under the new rules, educational groups will continue to make money by
leasing some of their unused airwave capacity to companies. Relocating
users of the spectrum will allow more traffic without causing
interference between the users.
The vote of the five-member commission was unanimous. The possibility of
selling the airwaves had come up as part of a broader FCC staff proposal
to reorganize the airwaves.

At a public meeting yesterday, the commissioners said restructuring the
educators' airwaves could encourage entrepreneurs to use the spectrum to
transmit new high-speed wireless services.

One such company is Clearwire Inc., owned by cellular pioneer Craig O.
McCaw. Clearwire announced this month plans to offer wireless Internet
service at very high speeds. The company argued against the sale of the
airwaves, contending it would have been outbid by much wealthier
cellular phone companies that would have snapped up the spectrum rights
and prevented new, competitive Internet services from going to market.

The new rules also are a victory for Reston-based Nextel, which bought a
large chunk of airwaves near the educational institutions through the
bankruptcy proceedings of WorldCom Inc. (now MCI Inc.) and Nucentrix
Broadband Network Inc. Nextel said it will be able to carry larger
volumes of Internet traffic over its network once the FCC reallocates
the educational spectrum.
"I think the commission took a number of good steps to make the spectrum
more useful," said Lawrence R. Krevor, vice president of government
affairs for Nextel.

Yesterday's proceeding was separate from the dispute over Nextel's
proposal to exchange some spectrum to help minimize cellular
interference with public safety communications systems. That matter is
still pending.
© 2004 The Washington Post Company
http://www.washingtonpost.com/wp-dyn/articles/A32706-2004Jun10.html

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