Subject: [NEXTEL-1] Verizon: Nextel Swap Could Violate Criminal Code

From: NEXTEL-1
Date: Tue, 29 Jun 2004 14:23:59 -0400

Verizon: Nextel Swap Could Violate Criminal Code
BY MARK ROCKWELL
JUNE 29, 2004

WASHINGTON-As the FCC apparently moves toward awarding Nextel spectrum at
1.9 GHz, Nextel rival Verizon Wireless has upped the ante, saying that the FCC's apparent choice could have some criminal consequences for commissioners.

In a letter sent Monday to FCC chairman Michael Powell, Verizon Wireless executive vice president and general counsel William Barr said he is "gravely concerned" about the direction the commission appears to be taking in the 800 MHz spectrum decision. Failing to offer an auction for the 1.9 GHz spectrum that would be offered to Nextel in a swap arrangement would not only violate the Communications Act of 1934's requirements that the FCC make such resources publicly available, said Barr, but could expose FCC officials to criminal charges.  Proceeding with the 1.9 GHz spectrum swap, said Barr, "would place the commission's members themselves in direct violation of federal laws governing the personal accountability of federal officials for the disposition of federal resources," he said.

According to some commission watchers in Washington, the FCC is preparing its decision with an aim to release it at the July 8 meeting.

Barr said his letter was sent to alert the FCC to the applicability of laws overseeing public officials, not the Communications Act. Specifically, Barr said the 1.9 GHz proposal could violate The Anti-Deficiency Act, the Miscellaneous Receipts Act and portions of the U.S. criminal code. Verizon Wireless officials declined to comment beyond the contents of the letter.

"Congress, and Congress alone, possesses the power to determine how public resources are to be expended or applied," he said. "Individual government officials simply are not free to expend public resources under their stewardship in support of activity that they themselves deem to be in the public interest," he said.

Along those lines, last week, House budget committee chairman Jim Nussle, R-Iowa, introduced a bill that would require the commission to auction the 1.9 GHz spectrum, and any other spectrum under its control.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=2&pubdate=06/29/04

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