Subject: [NEXTEL-1] Nextel ups escrow- Brian Fontes said increasing the amount in escrow does not answer the criticisms some public-safety agencies have levied.

From: [email-masked]
Date: Tue, 04 Nov 2003 12:59:07 -0500

Nextel ups escrow- Brian Fontes said " increasing the amount in escrow
does not answer the criticisms some public-safety agencies have levied."

Nextel ups escrow amount to $100M for 800 MHz plan
By Heather Forsgren Weaver
November 04 12:06:00, 2003

WASHINGTON—Nextel Communications Inc. Monday told the Federal
Communications Commission it would deposit $100
million in an escrow account and secure irrevocable lines of credit for
the other $750 million to pay for the relocation of
public safety and private wireless if the Consensus Plan to solve the
public-safety interference problem in the 800 MHz
band is adopted.

“Nextel’s decision to place $100 million in an escrow fund and arrange
for $750 million of irrevocable letters of credit for
the benefit of 800 MHz incumbent licensees demonstrates our commitment
to ensuring that funding of the relocation
expenses under the Consensus Plan is secured,” said Paul Saleh, Nextel
chief financial officer.

The Consensus Plan would shuffle the 800 MHz band to eliminate the
current situation where public safety, private
wireless, Nextel and some cellular carriers are interwoven. Nextel said
that $850 million will be sufficient to pay for the
necessary retuning of public-safety and private-wireless radios. Others
have expressed skepticism that amount will be
sufficient.

Previously, Nextel had agreed to place $25 million in escrow with the
remainder to be dispersed according to a
complicated process outlined in the Consensus Plan.

In exchange for giving up spectrum in the 700, 800 and 900 MHz bands and
for paying to retune public safety and
private wireless, Nextel has asked for 10 megahertz in the 1.9 GHz band.

RCR Wireless News first reported Oct. 27 that FCC staff is contemplating
a proposal that would give Nextel no more than
6 megahertz of spectrum in the 1.9 GHz band.

Nextel’s filing appears to be its offer in what have become public
negotiations.

Nextel has also been meeting with various FCC officials in recent days
to stress again its view that the Consensus Plan
is the only option to solve the interference problem.

Brian Fontes, vice president of federal affairs for Cingular Wireless
L.L.C. and an outspoken opponent of the Consensus
Plan, said increasing the amount in escrow does not answer the
criticisms some public-safety agencies have levied that
Nextel will not pay for all of the costs necessary in rearranging the
800 MHz band. “It seems to me that Nextel wants a
fantastic deal benefiting only Nextel,” said Fontes.

http://rcrnews.com/cgi-bin/news.pl?newsId=15769