Subject: [NEXTEL-1] FCC Shows Hesitance in Resolving Nextel Spectrum Swap

From: NEXTEL-1
Date: Fri, 11 Jun 2004 02:11:36 -0400

June 11, 2004

FCC Shows Hesitance in Resolving Nextel Spectrum Swap

Last March when TelecomWeb’s sister publication, Telecom Policy Report,
addressed the issue of the Nextel spectrum swap, the publication said
the FCC was leaning largely in favor of the so-called “Consensus Plan”
supported by Nextel and virtually all players in the public safety
arena. Yet, here we are almost three months later and the Commission
still has not made a final decision.

TPR think it knows why: FCC Chairman Michael Powell is apparently
reluctant to make a move because he fears that regardless of what
decision the Commission makes, it’s going to end up being litigated. On
that point, Powell is probably correct.
If the Commission approves the Consensus Plan and allows Nextel to
obtain the spectrum it wants in the 1.9 GHz band, Verizon, which
strongly objects to the proposal, can be expected to sue the FCC. On the
other hand, if the Commission rejects the Consensus Plan and tries to
force Nextel into accepting spectrum in the 2.1 GHz band — which is an
alternative that’s still on the table — Nextel can be expected to sue
the Commission.

Nextel wants to swap patches of spectrum at 700, 800, and 900 MHz for
contiguous 800 MHz spectrum in the 1.9 GHz band. That sounds simple
enough, and the nation’s major public safety organizations, including
the Association of Public-Safety Communications Officials, as well as a
number of private wireless groups support the proposal. Verizon and the
Cellular Telecommunications and Internet Association (CTIA) do not. In
fact, Verizon is even dangling a pretty attractive carrot in front of
the FCC. The Baby Bell has told Powell that it plans to make a $5
billion opening bid if the Commission puts the disputed block of 1.9 GHz
spectrum up for auction.

http://www.telecomweb.com/news/1086708615.htm

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