Subject: [NEXTEL-1] 800 MHz Decision Goes Nextel's Way

From: [email-masked]
Date: Thu, 08 Jul 2004 14:14:25 -0400

800 MHz Decision Goes Nextel's Way
BY MARK ROCKWELL
JULY 8, 2004
WIRELESS WEEK

WASHINGTON-The FCC took its long-awaited shot today in settling public
safety communications interference problems by voting 5-0 to swap Nextel
Communications' 800 MHz holdings with spectrum at 1.9 GHz.

The commission voted to require Nextel to give up rights to most of its
800 MHz licenses and all of its 700 MHz licenses in exchange for
spectrum in 5 MHz chunks at 1910-1915 and 1990-1995 MHz. The commission
valued Nextel's spectrum at $4.8 billion, less the cost of relocating
thousands of public safety organizations, said John Muleta, FCC wireless
telecommunications bureau chief, in a press briefing after today's vote.

Nextel would have to line up a $2.5 billion letter of credit to ensure
emergency service providers were moved. The commission also mandated
that Nextel make an 'anti-windfall payment' to the Treasury Department
if the costs of relocating incumbent providers totals less than the
FCC's estimated $4.8 billion of the 1.9 GHZ spectrum. Nextel's own
relocation costs also would be covered, where appropriate, according to
Muleta. The commission has an 'exhaustive' list of what components and
equipment would be covered by the re-imbursement, he said.

Moving emergency service providers will be overseen by an independent
transition administrator chosen by emergency service providers and other
stakeholders in the 800 MHz proceeding, Muleta said.

'This was the most difficult, complex issue I've ever worked on,' said
FCC Chairman Michael Powell after the vote. 'Today we took bold action
because our police and fire departments deserve nothing less.' Powell
said the divisive issue brought a unanimous decision from the
commission, however. There had been last-minute behind-the-scenes talks
between commissioners over the decision and rumors of a hold out among
the Democratic members, but in the end, Powell said commissioners showed
a united front because they realized a decision would help public
safety.

Powell also took a shot at what he saw as unprecedented negative
lobbying over the issue. In the weeks leading up to the vote, warnings
of federal criminal violations and General Accounting Office (GAO)
investigations loomed. Verizon Wireless said the FCC, in giving spectrum
to Nextel at 1.9 GHz, could be violating federal criminal statutes, as
well other federal laws. 'Much has been made of the legal consequences'
of the vote, said Powell after the meeting. Lobbying leading up to the
decision was 'the most ruthless we've ever encountered,' he added.
'Yes, there are risks, but they pale in comparison' to those that public
safety providers would face if the FCC didn't act, he said. 'Sometimes
you have to rise above commercial self-interest' and act in the public's
behalf, he said in a swipe at Verizon Wireless' constant reminders of
the billions it would have paid for the 1.9 MHz spectrum. 'There's been
an inordinate amount of time nickel and diming the valuation' of
spectrum, he said.

An investigation at the GAO concerning the spectrum swap still awaits.
The commission said 'the U.S. comptroller general has agreed to review'
the issue.  Should the 'comptroller general unambiguously conclude that
the commission's plan violates the appropriations statutes, the
commission will address ... whether it is appropriate to stay the effect
of some aspects of the plan...' In other words, if the GAO concludes the
FCC's plan violates rules against giving away public resources to a
private company, the FCC may have to go back to the drawing board.

Critics responded immediately. Steve Largent, president and CEO of CTIA,
called the decision 'disappointing.'

'The FCC clearly didn't keep its eye on the ball,' he said in a
statement. 'Its primary responsibility in this case is to look out for
public safety and the American public, and that didn't happen. It is
unfortunate that the commission's plan does less to solve the public
safety interference problem than other alternatives that were available.
Among all of the FCC's choices, this one provides public safety with the
fewest assurances of success.'

http://www.wirelessweek.com/index.asp?layout=document&doc_id=134411&verticalID=34&vertical=Business+and+Finance&industry=

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From: "[email-masked]" <[email-masked]>
Date: Thu, 8 Jul 2004 15:12:00 -0400

Is this going to cause a windfall of coordination fees for APCO?

If freqs require coordination will Nextel pay for it?

Rik Rasmussen
Radio System Manager
City of Durham, NC
919-560-4175 x 244
919-560-4400 fax
http://www.ci.durham.nc.us

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