Subject: [NEXTEL-1] Nextel Hits New Setback in Spectrum Bid

From: [email-masked]
Date: Thu, 20 May 2004 19:27:41 -0400

Nextel Hits New Setback in Spectrum Bid
By Yuki Noguchi
Washington Post Staff Writer
Thursday, May 20, 2004; 6:48 PM

The Federal Communications Commission has pulled
back its approval of a plan backed by Nextel
Communications Inc., according to sources close to the
commission, marking a setback for the Reston-based
wireless phone company's efforts to secure valuable
new airwaves to transmit its phone traffic.

Nextel's cellular-phone systems interfere with police and
emergency radio systems around the country. To
remedy the problem, Nextel proposed giving up rights
to use some of its existing airwaves and offered to pay
$850 million to move public-safety groups to a
less-crowded frequency band. In return, it wants the
rights to a swath of airwaves at the 1.9 gigahertz range.

Nextel's rivals, including Verizon Wireless and Cingular
Wireless, have lobbied hard against that plan, claiming
the proposal would effectively give away a scarce public
resource that is worth at least $1 billion more than what
Nextel offered. Those companies, and the Cellular
Telecommunications & Internet Association, have
argued Nextel should pay more and get less-valuable
airwaves in the 2.1 gigahertz range.

In early April, after two and a half years of considering various
solutions, a majority of the five commissioners,
including FCC chairman Michael K. Powell, voted in favor of Nextel's
plan. But the five commissioners continued to discuss other options,
including whether Nextel should pay more for the airwaves, or whether
the company should get the less valuable 2.1 gigahertz airwaves. The
higher frequency band is considered less desirable because cellular
systems don't currently operate there.

Earlier this week, Powell pulled his vote supporting the 1.9 gigahertz
exchange, effectively extending negotiations and increasing the
possibility that Nextel may be forced to take the less-desirable
spectrum that it says it will not accept, according to sources close to
the commission. Although all options remain on the table, the move
appears to signal that a majority of commissioners back a plan to give
Nextel the 2.1 gigahertz spectrum, FCC sources said.

Commissioners Kevin Martin and Michael Copps have voted to support the
1.9 gigahertz proposal.
Nextel spokeswoman Leigh Horner declined to comment on the non-public
deliberations at the FCC.
Meanwhile, pressure is mounting on both sides for the FCC to make a
decision. Verizon Wireless has garnered support from several dozen
members of Congress and New York state attorney general Eliot Spitzer
supporting its argument. On the other side, Nextel has the support of
the Association of Public-Safety Communications Officials, and hundreds
of local fire and police departments around the country.

Both sides have threatened to sue if the FCC does not act in their
favor.

http://www.washingtonpost.com/wp-dyn/articles/A43352-2004May20.html

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