Subject: [NEXTEL-1] CTIA Files Consensus Plan Objection

From: [email-masked]
Date: Fri, 05 Dec 2003 14:32:21 -0500

CTIA Files Consensus Plan Objection
BY SUSAN RUSH
DECEMBER 5, 2003

The heated debate over whether Nextel Communications Inc.'s Consensus Plan is
the best option to fix the jumbled 800 MHz spectrum rages on. The latest: CTIA
has made a filing with the FCC refuting the plan, saying it departs from the
commission's precedent and is not support by law.

The Consensus Plan is designed to shift public safety agencies from the 800 MHz
band to other frequencies to solve interference problems in the band. It was
first introduced in November 2001 by Nextel and 13 other public safety and
industry organizations and companies. But, since the proposal was unveiled, it
has faced fierce opposition from the likes of CTIA, the United Telecom Council,
AT&T Wireless, Verizon Wireless and other wireless carriers that claim approval
of the plan would give Nextel a competitive boost.

In its paper to the FCC, the wireless organization reinforces this belief,
contending that if Nextel's plan is allowed to pass, it would "sidestep the
normal competitive bidding rules and procedures in order to substantially
improve Nextel's spectrum holdings without Nextel having to face competition for
the license."

The CTIA goes on to say that the plan cannot be considered a channel swap or a
license modification, as the plan contends, because it neither qualifies the
applicable law nor falls in line with FCC definitions and precedents.
To pass the Consensus Plan, the FCC would have to "ignore its statutory
obligations," CTIA said..

Although Nextel could not be reached for comment about the CTIA filing, the
carrier has been working hard to plead the plan's case. Early last month, Nextel
outlined how it plans to raise the $850 million in relocation funds it committed
to last December. The wireless provider says it will deposit $100 million in
cash in an escrow account and plans to raise the remaining $750 million through
one or more irrevocable standby letters of credit issued by internationally
recognized commercial lending institutions. The letters of credit will ensure
payments are provided to the relocation fund if Nextel fails to meet its
financial obligations, according to Nextel.

Then in late November, the company filed with the FCC two studies conducted by
wireless industry experts supporting Nextel's belief that the Consensus Plan is
the "most comprehensive way to eliminate public safety interference."
CTIA's filing with the FCC comes at a time when rumors are circulating in
Washington that the commission is close to reaching some conclusion of its own
on the plan.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=2&pubdate=12/05/03

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