Subject: [NEXTEL-1] The "Plan Scam" changes names again-"Public Safety Consensus Plan"--

From: Marcel <[email-masked]>
Date: Mon, 11 Nov 2002 14:22:35 -0500

The "Plan Scam" changes names again-"Public Safety Consensus Plan"--

Update on 800Mhz Spectrum Reconfiguration, Following "The Private Wireless Summit 2002" in
Washington, DC -
 A panel composed of Alan Tilles, Esq., of Shulman, Rogers, Gandal, Pordy & Ecker,
representing the Private Wireless Coalition (PWC); Robert Foosaner, Esq., SVP and Chief
Regulatory Officer of Nextel, representing Nextel Communications (NXTL); and Robert Gurss,
Esq., of Shook, Hardy & Bacon, representing the Association of Public Safety
Communications Officials (APCO) spoke about the outstanding Consensus Plan (which
currently has approval from more than 90% of users in the affected spectrum) and its
ability to alleviate interference in the 800 MHz frequency, how it will impact incumbent
spectrum licensees, and the progress the Consensus group is making on another, more
comprehensive filing, which will cover some of the aforementioned issues, most importantly
the funding of the plan.

From the panel, we highlight the following: . The pending funding solution will NOT likely
impose expenses on the taxpayer (don't expect much help from the federal government, i.e.,
Homeland Security). . Less than 30% of existing private, incumbent groups, will be
required to move from their current frequencies, but according to the PWC, this move MUST
BE 100% funded, or there is no Consensus Plan. .

APCO prefers not to have a cap on funding for the retuning/rebanding as it is uncertain of
the full cost for implementation. . Nextel, being a public company, said that an
open-ended financial commitment would be impossible and the company is currently in the
process of meeting with various public safety organizations to discuss, in detail, all the
events and costs necessary for the reconfiguration. Nextel believes it can come up with a
relatively close monetary estimate for the complete reconfiguration. .

According to Mr. Foosaner, the Consensus Group will come up with realistic funding amount;
however, at that time, NXTL's Board will have to make a decision whether to increase its
contribution over its original $500 million offer. . Costs to Nextel will include the cost
to retune their own radios, as well as a large portion (if not all) the expense to retune
and reband all other affected parties. .

A new filing by the consensus group, including funding plans could be out before
Thanksgiving. In conclusion, there appear to be no other viable solutions available at
this time; however, we believe the Consensus Plan will cost Nextel more and may take
longer to get approved. Regarding the funding issue, Mr. Foosaner has stated on several
occasions, that the "decision is up to the [Nextel] Board."
FBR-

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