Subject: [NEXTEL-1] US FCC chief hopes Nextel airwaves decision in

From: [email-masked]
Date: Thu, 13 May 2004 13:17:39 -0400

US FCC chief hopes Nextel airwaves decision in
May

Thursday May 13, 12:57 pm ET

WASHINGTON, May 13 (Reuters) -
The Federal Communications Commission
hopes to have a solution to interference
between emergency communications and
wireless carrier Nextel Communications Inc.
(NasdaqNM:NXTL - News) by the
end of May, the agency's chairman
said on Thursday.

A source has said FCC Chairman
Michael Powell is leaning toward
permitting Nextel to move its
operations to airwaves in the 2.1
Gigahertz band, but the No. 6 U.S.
wireless carrier has rejected that
idea and prefers spectrum in the 1.9
Ghz band.

"People say whatever they want to
say in their letters (to the FCC), but it
doesn't mean the end of the story,"
Powell told reporters on Thursday.
"We're still pretty confident we're
making progress and we're going to
get there pretty soon."

Powell said the parties were in active
negotiations and that his goal was to finish
by the end of May.

"I'm going to shoot for that," he added.

Nextel and public safety organizations, which operate
in the 800 Mhz band, are clamoring for a solution to
the interference problems but are split as to how to
accomplish that.

Meanwhile, rival wireless carriers have said
they would challenge in court any decision
to give Nextel 1.9 Ghz airwaves.

Powell will have to win support for any
proposed solution from at least two of the
other four FCC commissioners and no formal
proposal is presently before them.

Nextel Chief Executive Tim Donahue
earlier this week wrote to Powell to tell
him that the spectrum in the 2.1 Ghz band
was unacceptable because the company
would still face interference issues and other complications.

The company has proposed paying $850 million to reorganize the 800 Mhz
band and move public safety communications to resolve interference
issues. It has also agreed to pay another $512 million to clear airwaves
in the 1.9 Ghz band.

Verizon Wireless, a joint venture of Verizon Communications (NYSE:VZ -
News) and Vodafone Group Plc (London:VOD.L - News), has said it would
bid at least $5 billion for the 1.9 Ghz airwaves that Nextel wants.
Nextel's rivals have also said the carrier should pay at least $3
billion for the airwaves in the 2.1 Ghz band.

http://biz.yahoo.com/rc/040513/telecoms_nextel_fcc_1.html

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