Subject: [NEXTEL-1] FCC smartly took path of least resistance (NOT!)

From: NEXTEL-1
Date: Fri, 25 Jun 2004 14:52:07 -0400

MRT's Wavelengths 
June 25, 2004 

FCC smartly 
took path of least resistance

By Glenn Bischoff

It appears the Federal Communications Commission 
finally is going to bring the rancorous battle over how 
to fix the interference problems that plague public-safety 
communications across the country to a close. FCC 
Chairman Michael Powell reportedly has decided that Nextel 
Communications should receive the 1.9 GHz spectrum it 
covets in exchange for rebanding the 800 MHz airwaves, 
and fellow commissioners are expected to get in line. 
An order could be issued next week. 

Having covered the FCC for nearly four years, I have gained some insight
into how the commission thinks and believe such an order would stem
primarily from a desire to craft an outcome that is winnable. The FCC
knows that no matter what it decides, the decision will be challenged in
court. 

The issue boils down to this: Should the commission award Nextel the 1.9
GHz airwaves, Verizon Wireless will sue on the grounds that current
telecom law requires spectrum to be auctioned. On the other hand, should
the FCC award less valuable 2.1 GHz spectrum instead -- which Verizon
has said it would not challenge -- Nextel likely will pull the plug on
rebanding, claiming the FCC lacks the authority to force it to reband
because the carrier allegedly is operating within current commission
rules. 

The FCC believes it can award whatever spectrum it chooses because it
will be modifying Nextel's existing license and not creating a new
license. The commission has a powerful supporter in Sen. Ted Stevens
(R-Alaska), who co-authored the spectrum-allocation legislation and has
said the commission stands on solid legal ground. While some in the FCC
think it could force Nextel to reband through an enforcement-like order,
others in the commission are less confident of its legal position and
prefer a negotiated solution. 

Beyond the legalities, there is a practical consideration that likely
influenced the decision. If the FCC awards Nextel the 1.9 GHz airwaves
and keeps the carrier at the table, Nextel will pay for the rebanding.
Nextel publicly has pledged $850 million for the effort and likely will
pay considerably more in the final settlement. It also has vowed to
reband even if Verizon or any other entity sues, an important
consideration because the last thing the FCC or public safety wants to
see happen is the rebanding process delayed by a lengthy court fight. 

On the other hand, should the FCC choose to award 2.1 GHz spectrum
instead, Nextel says it will walk. Even if Nextel accepted 2.1 GHz, it's
questionable whether those airwaves are valuable enough for Nextel to
include enough money in the deal to pay for rebanding. Plus, auctioning
the 1.9 GHz spectrum would do nothing to solve the public-safety
interference problem, because the proceeds then would go into the U.S.
Treasury and could not be directed by the FCC. 

As we mature, most of us gain the ability to distinguish between the
battles we should fight and the ones we shouldn't. With all that is at
stake -- potentially the lives of first responders and civilians --
awarding Nextel the 1.9 GHz airwaves, as distasteful as that might be,
is the prudent decision. 

MRT's Wavelength e-letter 06/25/04

http://enews.primediabusiness.com/enews/mobileradiotech/mrt_bulletin/2004_june_25_6252004/view.html

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