Subject: [NEXTEL-1] CONGRESS SEEKS QUICK 800 MHZ REBAND

From: Marcelrf <[email-masked]>
Date: Wed, 24 Mar 2004 10:12:33 -0500

CONGRESS SEEKS QUICK 800 MHZ REBAND
March 23, 2004 6:21pm
mrt

Amid speculation that the Federal Communications Commission will reband
800 MHz frequencies this month, some federal lawmakers threw their
support behind the plan but expressed significant opposition to Nextel
Communications getting 10 MHz of spectrum at 1.9 GHz as part of the
deal.

In a Feb. 27 letter to FCC Chairman Michael Powell, 23 U.S.
representatives said the commission should reband 800 MHz “as quickly as
possible” to remove most of the interference problems Nextel has caused
for public-safety organizations.
But a Consensus Plan proposal calling for Nextel to receive 1.9 GHz
should be discarded, according to the Congressional contingent. Not only
does the Communication Act prohibit such a spectrum grant, but there are
enough interested bidders that auctioning the airwaves would raise
“billions of dollars for the U.S. Treasury,” the letter stated.

Separately, Verizon Wireless reiterated its belief that Nextel would
receive a $7.2 billion windfall if the Consensus Plan were adopted.
Verizon also said the FCC should refuse to adopt the proposal as the
Department of Justice investigates Nextel for possible antitrust
violations in the push-to-talk market.

Nextel countered with a press release stating it would lose $4.6 billion
under the Consensus Plan and expressing “confidence that we have
conducted ourselves appropriately” with respect to the DOJ inquiry.

Rudy Baca, wireless strategist at The Precursor Group, said he believes
the FCC will decide in March to reband 800 MHz but avoid the “political
firestorm” that would come with granting Nextel spectrum at 1.9 GHz.
Nextel also would be expected to fulfill its commitment to ante $850
million to help pay for rebanding.

“It's not going to be enough to pay for it completely,” Baca said.
“They'll probably turn to the states for [funding] help.”

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