Subject: [NEXTEL-1] AT&T WIRELESS AGREES THAT FCC CAN FORCE NEXTEL TO PAY FOR REBANDING

From: Marcelrf <[email-masked]>
Date: Tue, 09 Mar 2004 17:21:07 -0500

AT&T WIRELESS AGREES THAT FCC CAN FORCE NEXTEL TO PAY FOR REBANDING

AT&T Wireless Services, Inc., has joined Verizon Wireless and
Cingular Wireless LLC in calling for the FCC to make Nextel
Communications, Inc., pay to retune public safety and private wireless
licensees in the 800 megahertz band if it decides to realign the
frequencies.  AT&T Wireless also agrees that any rebanding shouldn't
involve the 1.9 gigahertz band frequencies that Nextel is seeking as
part of a "consensus" plan.

While Verizon Wireless, Cingular, and AT&T Wireless have backed a
rival "balanced approach" for addressing commercial interference to
public safety systems in the 800 MHz band, some observers say the
recent developments indicate that the Commission plans to adopt some
realignment of the 800 MHz band.  The balanced approach relies
mainly on the use of "best practices," rather than rebanding.

In an ex parte filing Friday, Douglas I. Brandon, AT&T Wireless's
vice president-external affairs & law, called the balanced approach
"the most effective way to address interference to public safety
systems - wherever and whenever it occurs.  To the extent, however,
that the Commission is currently exploring spectrum rebanding
options, AT&T Wireless urges the Commission to adopt the in-band
realignment proposal."

Quoting from a Feb. 26 letter to the FCC from Verizon Wireless, Mr.
Brandon said his company agreed "that the proposal represents the
best rebanding solution that will both `respond to public safety's needs

and also best serve the public interest.'"

He said the FCC had "ample authority"to require Nextel to pick up the
costs of retuning incumbents, echoing the contention that a rebanding
would increase the value of Nextel's spectrum holdings because it
would give the carrier contiguous channels.

On Friday, Nextel executives countered that the FCC lacked the
authority to force it to pay for the relocation costs of public safety
and  private wireless licensees as part of a rebanding.  They said
Nextel's
receipt of contiguous spectrum didn't increase the value of its holdings

because its iDEN (integrated digital enhanced network) technology
could operate efficiently on noncontiguous spectrum.  The company
also estimated that its spectral and financial obligations under the
consensus plan were worth more than $2 billion more than the 1.9
GHz band spectrum it would receive.

Jill Lyon, general counsel and vice president of the United Telecom
Council, one of the drivers of the balanced approach plan, today said
she wasn't worried that the declaration of support for in-band
realignment by Verizon Wireless, Cingular, and AT&T Wireless
would hurt momentum for the balanced approach.  UTC, which
represents the utility industry, has been one of the most vocal
opponents of rebanding.

"They are not defecting," Ms. Lyon said of the wireless carriers,
noting that each has said that its first choice to address interference
would be Commission adoption of the balanced approach.   But for
"political reasons," it appears the Commission may decide to realign
the 800 MHz band, she said.  "Obviously, we still think it's the wrong
way to do this."

AT&T FCC Filing:

http://gullfoss2.fcc.gov/prod/ecfs/retrieve.cgi?native_or_pdf=pdf&id_document=6515784951

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