Subject: [NEXTEL-1] FCC ADOPTS SOLUTION TO INTERFERENCE PROBLEM FACED BY 800 MHZ PUBLIC SAFETY RADIO SYSTEMS

From: [email-masked]
Date: Thu, 08 Jul 2004 17:20:27 -0400

FOR IMMEDIATE RELEASE:    NEWS MEDIA CONTACT:
July 8, 2004       Lauren Patrich at (202) 418-7944
Email: [email-masked]

FCC ADOPTS SOLUTION TO INTERFERENCE PROBLEM FACED BY 800 MHZ PUBLIC
SAFETY RADIO SYSTEMS

Band Reconfiguration and Enhanced Best Practices Are Key Elements

Washington, D.C. – Today, the Federal Communications Commission adopted
a plan to resolve the ongoing and growing problem of interference to
public safety radio systems operating in the 800 MHz band.  In
recognition of the critical need for the Nation’s first responders to
have robust and highly reliable communications systems, the Commission
based its decision on meeting three essential goals: first and foremost,
resolving the interference problem to public safety radio systems;
second, ensuring equitable treatment of all of the affected spectrum
licensees with minimal disruption to users and the public alike; and
third, as the Commission is the federal agency charged with
administering the spectrum for the public good, exercising sound
principles of spectrum management.  The decision was unanimous.

Based on the extensive record developed regarding the public safety
interference problem, the Commission concluded that the most effective
solution is a Commission-derived plan, which is comprised of both
long-term and short-term components.  Over the long-term, the Commission
adopted a new band plan for the 800 MHz band to address the root cause
of the interference problem by separating generally incompatible
technologies (a chart of the band plan is  attached), with the costs of
relocating 800 MHz incumbents to be paid by Nextel Communications, Inc.
(Nextel).  In the short-term, the Commission implemented objective
technical standards – “Enhanced Best Practices” -- for defining
“unacceptable interference” to public safety systems operating in the
800 MHz band and procedures detailing the responsibilities and
expectations regarding abatement of such interference.

Since 1999, the Commission has received reports of interference to 800
MHz public safety communications systems from Commercial Mobile Radio
Services (CMRS) providers operating systems on channels in close
proximity to those utilized by public safety entities.  Initially, the
Commission’s approach to interference resolution was to urge the
involved parties to make voluntary technical changes to prevent or
reduce interference at particular sites.  In 2000, the public safety and
CMRS community formalized this approach as “Best Practices.”  In recent
years, however, 800 MHz public safety systems have encountered
increasing amounts of interference.

As a result, the Commission determined that reliance on these voluntary
measures alone was insufficient and thus initiated a rulemaking
proceeding to develop the effective solution it adopted today.

Today, the Commission adopted “Enhanced Best Practices” to address
interference problems pending completion of the band reconfiguration
process.  The Commission rejected this as an exclusive remedy for the
interference problem because the transactional costs of applying
Enhanced Best Practices will continue to increase as new public safety
and other non-cellular systems come on line and the commercial carriers
using cellular-architecture increase the capacity of their systems by
adding more cells.  The Commission recognized that these costs will
disproportionately affect public safety agencies, which operate with
extremely limited resources.  Under the new regime, the Commission
adopted an objective technical standard for defining unacceptable
interference and placed strict responsibility on carriers to fix such
interference.

To accomplish the reconfiguration, the Commission will require Nextel to
give up rights to certain of its licenses in the 800 MHz band and all of
its licenses in the 700 MHz band.  In exchange, the Commission will
modify Nextel’s licenses to provide the right to operate on two five-MHz
blocks in a different part of the spectrum -- specifically 1910–1915 MHz
and 1990-1995 MHz -- conditioned on Nextel fulfilling certain
obligations specified in the Commission’s decision.

The Commission determined that the overall value of the 1.9 GHz spectrum
rights is $4.8 billion, less the cost of relocating incumbent users.  In
addition, the Commission concluded that it would credit to Nextel the
value of the spectrum rights that Nextel will relinquish and the actual
costs Nextel incurs for to relocate all incumbents in the 800 MHz band.
To the extent that these combined credits total less than the determined
value of the 1.9 GHz spectrum rights, Nextel will make an anti-windfall
payment to the United States Department of the Treasury at the
conclusion of the relocation process equal to the difference
The Commission’s plan will result in an additional 4.5 MHz of 800
MHz-band spectrum, the equivalent of 90 additional two-way channels,
becoming available to public safety, critical infrastructure, and
private wireless users, including 10 channels for public safety/critical
infrastructure interoperability.  As with prior spectrum relocation
programs initiated by the Commission, Nextel – as the new entrant into
public safety bands – will be required to provide the existing public
safety licensees with comparable facilities.  To ensure that the band
reconfiguration process will be completed, the Commission will require
Nextel to establish certain escrow accounts and a letter of credit in
the amount of $2.5 billion specifically to ensure adequate funding of
relocation costs for other 800 MHz incumbents.  Similarly, as a new
entrant in the 1.9 GHz band, Nextel is also obligated to fund the
transition of incumbent users to comparable facilities.

Recognizing the complexity of the band reconfiguration and looking at
the experience of other federal agencies that have used a similar
process, the Commission provided for an independent “Transition
Administrator” to oversee the administrative and financial aspects of
the band reconfiguration, provide accountability to the reconfiguration
process, and ensure that band reconfiguration is achieved with minimal
disruption to licensees, particularly public safety entities.
Specifically, the Transition Administrator, whose decisions will be
subject to de novo Commission review, will authorize disbursement of
funds for band reconfiguration based on requests for payment by affected
parties and resolve funding disputes.  In the event of a material change
in Nextel’s financial situation, the Commission concluded that the
Transition Administrator would be empowered to take control of the
guaranteed funds and complete the band reconfiguration.

The Commission determined that this approach provides significant public
interest benefits by quickly resolving the interference problem which
reduces operating costs to public safety and commercial providers,
creating more spectrum and increased flexibility for public safety
licensees,  and accelerating band-clearing at 1.9 GHz, all of which
demonstrate improved spectrum management over this issue and result in
more effective protection of life and safety for both emergency
responders and the public.

The Commission recognized that, while it is essential to act promptly in
light of the vital public safety interest served by this decision, the
parties have raised novel issues regarding appropriations law, and the
U.S. Comptroller General has agreed to review those issues.  The
Commission stated that, should the Comptroller General unambiguously
conclude that the Commission's plan violates the appropriations
statutes, the Commission will address – either on its own motion or on
that of moving parties – whether it is appropriate to stay the effect of
some aspects of the plan pending a final decision by the Court of
Appeals on any application for review.

Historical documents in and related to this proceeding may be found at

http://wireless.fcc.gov/publicsafety/800MHz/bandinterference.html.

Action by the Commission, July 8, 2004, by Report and Order, Fourth
Report and Order, Memorandum Opinion and Order, and Order (FCC 04-168).
Chairman Powell, Commissioners Abernathy, Copps, Martin, and Adelstein.
Separate statements issued by Chairman Powell, Commissioners Abernathy,
Copps, and Adelstein.

WT Docket No. 02-55; ET Docket No. 00-258; RM-9498; RM-10024; ET Docket
No. 95-18;
IB Docket No. 01-185

For further information, contact Roberto Mussenden or Brian Marenco,
Wireless Telecommunications Bureau/Public Safety & Critical
Infrastructure Division at (202) 418-0680.  For further information
regarding Broadcast Auxiliary Service or Unlicensed PCS relocation
issues, contact Jamison Prime or Priya Shrinivasan, Office of
Engineering and Technology at (202) 418-2472.

-FCC-

News about the Federal Communications Commission can also be found
on the Commission’s web site www.fcc.gov.
 APPENDIX A
The 800 MHz band is currently configured as follows:

The Commission’s New 800 MHz Band Plan
The Commission’s plan for reconfiguration of the 800 MHz band is
designed to spectrally segregate public safety systems from ESMR and
cellular systems.  The new 800 MHz band will be configured as follows:

see graph:

 http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-249414A1.doc

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