Subject: [NEXTEL-1] Powell hints Nextel may accept 2.1 GHz spectrum- Is He Calling Timmy A LIAR? (Not Timmy! NOT)

From: [email-masked]
Date: Thu, 13 May 2004 14:54:12 -0400

Powell hints Nextel may accept 2.1 GHz spectrum
Is He Calling Timmy A LIAR? (Not Timmy! NOT)

By HEATHER FORSGREN WEAVER 
May 13 13:25:00, 2004

 WASHINGTON—FCC Chairman Michael Powell hinted to reporters Thursday
that Nextel Communications Inc. may yet be willing to accept spectrum
in the 2.1 GHz band instead of the 1.9 GHz band requested as part of
the Consensus Plan to solve public-safety interference in the 800 MHz
band.

"People say whatever they want to say in their letters but it doesn't
mean it is the end of the story, and I am not really able to share
with you all of the details of where we are. I can only say that we
are still pretty confident that we are making progress, and we are
going to get there pretty soon," said Powell.

Powell was apparently referring to a letter he received Tuesday from
Timothy Donahue, Nextel chief executive officer and president,
rejecting the 2.1 GHz spectrum.

"Nextel's commitment does not apply, however, if the Federal
Communications Commission substitutes 2.1 GHz for the 1.9 GHz G Block
replacement spectrum. For all of the reasons discussed above, 2.1 GHz
is untenable for Nextel's shareholders. My responsibility to Nextel's
shareholders requires that Nextel obtain comparable value in any
retuning transaction: 2.1 GHz does not meet that test. Nextel cannot
and will not accept that result and will avail itself of every
possible legal challenge to that outcome," wrote Donahue.

Powell said he hopes to complete the rules for solving the 800 MHz
public-safety problem by the end of the month "but it is difficult
because there are valuation issues, but I am going to shoot for that."

There are at least four different options to resolve interference at
800 MHz on the record.

The Consensus Plan would shuffle the 800 MHz band to eliminate the
current situation where public safety, private wireless, Nextel, other
SMRs and cellular carriers are intermingled. In exchange for giving up
spectrum in the 700 MHz, 800 MHz 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. It is supported by Nextel; the
Industrial Telecommunications Association, which represents
private-wireless interests; and some public-safety advocacy groups.
Other public-safety advocacy groups have expressed concern about the
Consensus Plan.

The FCC's staff proposal closely tracks with the Consensus Plan,
requiring Nextel to pay perhaps billions more than the $850 million it
said it would pay as part of the rebanding agreement. Nextel would pay
all of the relocation costs plus the difference between that amount
and "fair-market value" of 10 megahertz of spectrum it seeks in the
1.9 GHz band. The staff proposal reportedly does not require Nextel to
relinquish its 700 MHz and 900 MHz spectrum.

The Balanced Approach Plan calls for timely resolution of interference
at the expense of the interferer, coupled with technical rules,
notification and coordination procedures to prevent new interference.
It has been pushed by the United Telecom Council, which represents
utilities, and until recently, the Cellular Telecommunications &
Internet Association.

Late last month, CTIA said Nextel should pay $3 billion to cover the
rebanding costs of the 800 MHz band, but instead of getting spectrum
in the 1.9 GHz band, it should get spectrum in the 2.1 GHz band.
Nextel would get the 2.1 GHz spectrum as the retuning in the 800 MHz
band is completed. The money would also be deposited in a third-party
trust fund with protections against bankruptcy.

http://rcrnews.com/cgi-bin/news.pl?newsId=18094

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