Subject: [NEXTEL-1] Nextel sees spectrum alternative unworkable

From: [email-masked]
Date: Mon, 24 May 2004 20:00:34 -0400

Nextel sees spectrum alternative unworkable
Reuters, 05.24.04, 6:57 PM ET

WASHINGTON, May 24 (Reuters) - Nextel
Communications Inc. (nasdaq: NXTL - news - people) on Monday said
alternative airwaves proposed to resolve its interference with public
safety communications would not work for the company's business.

The No. 6 U.S. wireless provider has proposed moving its operations to
airwaves in the 1.9 Gigahertz band, but the U.S.  Federal Communications
Commission is considering instead offering space in the 2.1 Ghz band
because of opposition from Nextel's rivals.

FCC Chairman Michael Powell "would like to see us take 2.1, we're not
going to take it, the economic value does not meet our economic value
equation," Nextel Chief Executive Tim Donahue said at a Lehman Brothers
conference in New York.
Additionally, rivals Verizon Wireless and Cingular Wireless both operate
in much of the 2.1 Ghz band already and it would be hard to move their
operations, he said.

The FCC is trying to solve interference with critical wireless
communications of police, fire and rescue services in the 800 Mhz band
and has been considering plans for Nextel to move its operations there
to the 1.9 Ghz band.

"We're not looking at this for our voice services, we're looking at it
for the next generation of technology -- for broadband," Barry West,
chief technology officer, said at the conference, referring to
high-speed Internet service.

Separately, Nextel's Donahue reaffirmed the company's outlook for 2004.
In April, Nextel said it expects 2004 earnings per share of $2 or more
and would add 1.9 million new subscribers during the year.

On the swap issue, Nextel rivals like Verizon
Wireless, who want the 1.9 Ghz airwaves
auctioned to the highest bidder, have
threatened to sue if those airwaves are
assigned to Nextel. They have pushed for
2.1 Ghz and Nextel pay over $3 billion.

Nextel so far has offered to pay $850 million to reorganize the 800 Mhz
band to resolve interference problems and about $512 million to move
some television broadcasters' services out of the 1.9 Ghz band.

Powell has said he hopes to complete the proceeding by the end of May.
He initially backed a proposal for Nextel to move to 1.9 Ghz but now is
leaning towards the 2.1 Ghz band, a source familiar with the matter has
said.
Nextel shares closed down 46 cents, or 2 percent, to $22.21 on Nasdaq.

Verizon Wireless is a joint venture of Verizon Communications (nyse: VZ
- news - people) and Vodafone Group Plc. <VOD.L>.  Cingular Wireless is
a joint venture of BellSouth Corp. (nyse: BLS - news - people) and SBC
Communications Inc. (nyse: SBC - news - people).(Additional reporting by
Sinead Carew in New York and Justin Hyde in Washington.)
Copyright 2004, Reuters News Service

http://www.forbes.com/technology/ebusiness/newswire/2004/05/24/rtr1382933.html

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From: [email-masked]
Date: Mon, 24 May 2004 23:50:04 EDT

So what does the FCC do now? Go with the 2.1 GHz band and make Nextel the bad 
guy?

P. Waugh