Subject: [NEXTEL-1] Congress contingent asks FCC for 800 MHz answers

From: Marcelrf <[email-masked]>
Date: Fri, 05 Mar 2004 14:01:19 -0500

Congress contingent asks FCC for 800 MHz answers

By Donny Jackson
TelephonyOnline.com

Feb 27 2004 

Amid speculation that the Federal Communications
Commission will reband 800 MHz frequencies soon,
federal lawmakers yesterday expressed opposition
to Nextel Communications getting 10 MHz of spectrum
at 1.9 GHz as part of the deal.
 
In a 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. Because its spectrum is interleaved
with airwaves used by public safety, Nextel has created increased
interference in the band that is expected to be resolved by realigning
Nextel and public safety into contiguous blocks of 800 MHz spectrum. 

http://telephonyonline.com/ar/telecom_congress_contingent_asks/index.htm
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," according to the letter.
"Since there is increased interest in using the 1910-1915/1990-1995 MHz
band, please explain how the Commission could simply give any entity a
license or licenses to use all, or even part, of the band without
violating … the Communications Act’s requirement to use competitive
bidding to resolve mutually exclusive applications," the letter states.
The letter requests the FCC respond by March 15 and asks that the
commission not take action on the matter until the members of Congress
have had time to evaluate the response. 

Separately, Verizon Wireless reiterated its belief that Nextel would
receive a $7.2 billion windfall if the Consensus Plan were adopted,
citing an appraisal that the 1.9 GHz spectrum is worth $5.3 billion.
Verizon Wireless said it would participate in an auction of the
airwaves, if one were conducted. 

In addition, Verizon said the FCC should refuse to adopt the Consensus
Plan proposal as the Department of Justice investigates Nextel for
possible antitrust violations in the push-to-talk market. 

"The FCC should immediately tell Nextel to clean up the interference
mess it has created, and pay for it," Verizon Wireless spokesman Jeffrey
Nelson said. "At the same time, the FCC should now prepare to auction
off the 1.9 GHz spectrum to the highest eligible bidder. 

"The FCC should not be giving free spectrum worth billions of dollars to
a company now under investigation for anti-trust violations using
valuable spectrum it was previously granted by the government." 

Nextel retorted with a press release stating it would lose $4.6 billion
under the Consensus Plan and calling the Verizon Wireless valuation of
the 1.9 GHz "flawed." "The highest bid ever for 10 MHz of spectrum at
1.9 GHz was $3.3 billion in 1999, which was never paid," Nextel said.
"The highest amount ever received by the FCC for 10 MHz of spectrum at
1.9 GHz was, in fact, $1 billion." 

Nextel also expressed "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 will 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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From: "rcwallenb" <[email-masked]>
Date: Sat, 06 Mar 2004 03:38:14 -0000

> Congress contingent asks FCC for 800 MHz answers

Has any group posted a copy of the letter?
Bob
New Orleans

 
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