Subject: [NEXTEL-1] FCC Staff Moving From Nextel Spectrum Swap Proposal

From: [email-masked]
Date: Tue, 09 Sep 2003 01:55:57 -0400

FCC Staff Moving From Nextel Spectrum Swap Proposal
www.telecomweb.com

Sep 10, 2003

Momentum at the FCC staff level seems to be moving away from a Nextel
proposal calling for a spectrum swap that would resolve public-safety interference

in the 800 MHz band. The commissioners have not yet made a final policy
decision, but a number of factors are now emerging suggesting that the FCC may
adopt a staged approach - one that would give Nextel some - not all - of what it
wants, while at the same time delaying "rebanding" even longer.

Under Nextel's spectrum swap proposal, the FCC would deal with interference to
public-safety operators in the 800 MHz band by consolidating Nextel's spectrum in
that band and giving Nextel 10 MHz of spectrum in the more desirable 1.9 GHz
band. In return, Nextel would turn over spectrum it is holding in the 700, 800,
and
900 MHz bands.

The proposal, which is backed by a majority of the public-safety community and
private wireless licensees, calls for Nextel to provide $850 million in cash and
services to pay the costs of the public and private users moving to new spectrum.

There are alternative proposals in play from other wireless carriers, individual
public-safety agencies, a few private-wireless licensees, and Motorola - all of
which discuss "technical solutions" and industry "best practices" as ways to
reduce interference.

"In the near term, we believe the commission likely will require all 800 MHz
licensees to adopt some technical and behavioral solutions to reduce public-safety

interference," Legg Mason telecom analyst Rebecca Arbogast told TPR. "We
also believe it is still likely that the FCC will reband 800 MHz in a way that
gives
Nextel the contiguous spectrum it seeks, but working out the details could take
longer than previously expected."

It may be that the FCC will give Nextel replacement spectrum for approximately 2
MHz rather than the 10 MHz Nextel wants in the 1.9 GHz band. This would force
Nextel to decide whether to take a lesser deal than it originally sought or try
walking away from any deal the FCC might otherwise offer.

Given that FCC staff believe rebanding is not necessary in order to resolve
interference, the possibility remains that the commission might end up giving
Nextel nothing at all. "We believe a critical factor to watch is whether
public-safety
associations remain aligned with Nextel - in which case Nextel will likely get
more
of what it seeks - or break ranks," Arbogast said.

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