Subject: [NEXTEL-1] Mobile Radio Technology- Tells Public Saftey- Boycott Nextel

From: [email-masked]
Date: Fri, 14 May 2004 17:56:12 -0400

MRT's Wavelengths 

Money talks: 
Public safety should play carriers' game

By Glenn Bischoff
May 14, 2004 

Over the past few months I have heard a common lament from 
public safety regarding the 800 MHz interference crisis. Officials 
seem genuinely dismayed -- and even perplexed -- that the debate 
and eventual solution hinges on money. They don't believe it should. 
They contend that the lives of first responders and civilians are at 
risk, so the Federal Communications Commission should fix this now, 
fiscal consequences be damned. 

Their instincts are well directed, of course. No one wants to see
misfortune befall a citizen or first responder because a public-safety
radio failed due to 800 MHz interference -- not me, not the FCC, not
Nextel Communications (whose networks are the root cause of the
problem), and not Verizon Wireless (which wants to make sure whatever
solution the FCC comes up with doesn't include a competitive advantage
for Nextel). Public safety couldn't care less about the commercial
implications of potential solutions, nor should it. What's important is
keeping first responders and civilians as safe as possible -- it's a
black-and-white issue. 

Unfortunately, the FCC, Nextel and Verizon Wireless have to consider the
many shades of gray that cast a shadow over this debate. Of course this
is about money -- unfortunately, it has to be. Nextel CEO Tim Donahue
and Verizon Wireless CEO Denny Strigl, as well as the chief executives
of every other wireless carrier that could be affected by the outcome,
have a fiduciary responsibility to their shareholders to ensure their
best interests are served. Donahue acted upon that responsibility this
week in a letter to FCC Chairman Michael Powell (see story below). 

Donahue was reacting to a recent proposal floated by the Cellular
Telecommunications & Internet Association that would replace the 1.9 GHz
spectrum sought by Nextel under terms of the so-called Consensus Plan
with spectrum at 2.1 GHz. The 2.1 GHz spectrum is considered less
valuable than the 1.9 GHz airwaves, and would be "unacceptable,"
according to Donahue, who vowed that Nextel would "avail itself of every
possible legal challenge" to such an outcome. At the same time, CTIA
member Verizon Wireless has said it would not litigate should the FCC
award the 2.1 GHz spectrum in lieu of the 1.9 GHz airwaves -- otherwise,
see you in court. It's safe to assume that Strigl also has shareholder
reaction in mind. 

While public safety needs to accept the fact that Donahue and Strigl are
simply doing their jobs, the sector shouldn't sit in the stands and
watch this heavyweight fight -- with the FCC as referee -- play out. On
the contrary, it should jump into the ring. If this indeed is really
about money, public safety should take the gloves off and start to hit
back. 

Recently, Bob Gurss, director of government affairs for the Association
of Public-Safety Communications Officials International (APCO), told MRT
senior writer Donny Jackson that public safety would "hold accountable"
any entity that "holds up" an 800 MHz solution. However, Gurss didn't
say what public safety might do. As a public service-minded individual,
I'd like to make a couple of suggestions. 

First, Nextel has been aggressively selling public safety on the merits
of its Direct Connect push-to-talk service as an adjunct to their land
mobile radio networks. In fact, the sector currently represents about
20% of Nextel's new business, and the carrier expects that percentage to
rise over time. Public safety should cancel those contracts, or at least
put Nextel on notice that it will move its business to other carriers --
recall that Verizon Wireless and Sprint both are now offering P2T
service -- should Nextel fail to compromise. Similarly, public safety
should punish Verizon Wireless and any other commercial wireless carrier
that wants to move into the mobile data market opportunity that will be
created when CDPD networks are shut down in a few months, if they choose
to block an 800 MHz solution in court. 

Second, there are about 50,000 public-safety agencies nationwide, which
employ hundreds of thousands of first responders. It is safe to think
that tens of thousands of them use Nextel or Verizon Wireless for their
personal mobile phone service. APCO and other major public-safety
organizations should start a grassroots effort to punish any carrier
that won't compromise by getting first responders to abandon the guilty
carrier(s), something that is much easier to do after the advent of
wireless local number portability, which took effect last November. 

Granted, public safety might be hesitant to attack Nextel, as many
officials see the carrier as something of a savior. They give Nextel
high marks for being the only entity that -- in their mind -- has
presented a viable solution; better still is that Nextel is willing to
foot the bill for the rebanding of 800 MHz spectrum, as long as it
doesn't cost more than $850 million. In contrast, Verizon Wireless is
seen as a grubby interloper. 

Also, considering that Nextel and Verizon Wireless both are
multibillion-dollar companies, the effect of such strategies would
resemble more a jab than a haymaker. But just as a good jab can get a
boxer's attention, perhaps public safety can give Donahue and Strigl
something to think about. 

Here's something else Donahue should consider in the meantime: A few
months ago, the families of 12 New York City firefighters filed a $5
billion lawsuit alleging their relatives died because their radios
failed to receive evacuation orders before the World Trade Center towers
collapsed. Eventually, a judge blocked the suit, but only because the
families had applied for awards from the Victim's Compensation Fund; one
of the stipulations of receiving compensation from the fund is a waiver
of civil litigation. If not for that, it is likely the case would have
gone to trial. 

Given this, it is a virtual certainty that the survivors of any first
responder(s) killed in the line of duty as a direct result of radio
failure due to 800 MHz interference would file a multimillion-dollar --
perhaps multibillion-dollar -- lawsuit against Nextel. I wonder what
Donahue's shareholders would think about that? 

http://enews.primediabusiness.com/enews/mobileradiotech/mrt_bulletin/2004_may_14_5142004/view.html

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