Subject: [NEXTEL-1] FCC Approves Reorganization Plan for Wireless Band

From: NEXTEL-1
Date: Thu, 10 Jun 2004 16:21:36 -0400

FCC Approves Reorganization Plan for Wireless Band
Thu Jun 10, 2004 04:01 PM ET

WASHINGTON (Reuters) - The U.S. Federal
Communications Commission on Thursday approved a
plan to reorganize a band of airwaves in hopes of promoting
further deployment of wireless high-speed Internet access.
The band, which includes more than 190 megahertz of valuable
spectrum, is primarily used by education institutions for
programs like distance learning and by companies including
Sprint Corp. (FON.N: Quote, Profile, Research) and Nextel
Communications Inc. (NXTL.O: Quote, Profile, Research)

The agency approved a plan that would allow greater flexibility
for using the airwaves and continue to allow education
organizations to lease their spectrum in the band for
commercial services, like wireless high-speed Internet services, known
as broadband.

The agency refused to allow the education organizations to sell their
licenses and said they must still keep 5 percent of the airwaves for
educational purposes. The band to be reorganized over the next three
years stretches from 2495 Mhz to 2690 Mhz.

Additionally, the agency lifted limits that had previously prevented
certain industries, like the cable providers, from using the airwaves.
But the pay television industry will still be barred from offering video
service using that spectrum.
Sprint, the No. 4 U.S. long-distance and wireless carrier, had tried to
use a slice of the airwaves for fixed broadband services but was unable
to make a profit.

Nonetheless, the company was pleased with the new flexibility granted by
the FCC.
"We haven't made any final decisions on the direction we're going to
take," said Sprint spokesman James Fisher. He declined to detail the
possibilities.

Nextel acquired a chunk of airwaves in the band from MCI Inc. (MCIA.PK:
Quote, Profile, Research) when that company
was in bankruptcy protection and has indicated it may use the spectrum
for wireless broadband service.

© Reuters 2004. All Rights Reserved.

 http://www.reuters.com/newsArticle.jhtml?type=internetNews&storyID=5396180