Subject: [NEXTEL-1] FCC may let Nextel swap airwaves

From: Marcelrf <[email-masked]>
Date: Wed, 10 Mar 2004 20:00:39 -0500

Posted 3/10/2004 3:03 AM     Updated 3/10/2004 3:52 PM

FCC may let Nextel swap airwaves

By Paul Davidson, USA TODAY
Federal regulators are leaning toward
approval of a controversial plan to swap airwaves to reduce cell
phone interference with police and fire radio systems across the
country.

The development is significant because the interference has
hampered emergency response systems in dozens of cities since
the mid-1990s, including Denver, Miami, San Diego and Seattle.

A recommendation by the Federal Communications' staff that broadly
endorses the plan by Nextel Communications (NXTL) and public safety
officials was sent to the commissioners Tuesday, FCC officials told USA
TODAY.

But the proposal would require Nextel — which has been causing most of
the interference — to pay as much as several billion dollars for the new
spectrum it receives.

Nextel says the value of its airwaves would actually drop by $1 billion
under the proposed trade. Asked if the company would be willing to pay
for the airwaves, Nextel's Larry Krevor, said, "We'd have to look at the
numbers."
The interference occurs because frequencies used by public safety
agencies, Nextel and other mobile radio services are interlaced.
Nextel's numerous antenna towers sometimes overwhelm public
safety radios, causing "dead spots" in coverage.

Nextel in late 2001 proposed swapping airwaves so that it, public safety
and the private carriers each would get contiguous, static-free
airwaves. The company also agreed to pay $850 million toward costs for
public safety agencies and the private carriers to reprogram equipment
or buy new gear.

But other cell phone carriers say the plan, by involving several
spectrum bands, unfairly gives Nextel prime contiguous airwaves that, by
law, should be sold at auction by the FCC for billions of dollars.
Verizon Wireless says the airwaves are worth about $7 billion. Research
firm Legg Mason puts their value at about $1 billion.

In a recent letter to FCC Chairman Michael Powell, 23 lawmakers opposed
the plan, saying any swap should be limited to the band where the
interference is occurring. Nextel says that would leave too much
congestion in that band. While a more limited swap is still an option,
Legg Mason says four of the five commissioners appear to support the
broader trade.
Critics also say that plan would disrupt half the nation's 2,200 public
safety agencies, even though interference is isolated. It could take
several years to complete.

The cell phone carriers have proposed an alternative plan that involves
equipment upgrades and retuning antennas and radios. Nextel says that
won't fix the underlying problem.

http://www.usatoday.com/money/industries/telecom/2004-03-10-nextel_x.htm

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