Subject: [NEXTEL-1] Commentary: Nextel's "Consensus" Plan draws anything but]

From: Marcelrf <[email-masked]>
Date: Mon, 15 Mar 2004 00:10:53 -0500

Commentary by Rhonda Wickham Editor-in-Chief
Wireless Week Magazine
March 15th, 2004

Nextel's Consensus Plan Draws Anything But

If service providers have a raw nerve issue, it's spectrum. As limited
as spectrum is, carrier claws inevitably come out when it appears a
competitor might get a leg up without anteing up. For evidence, you need
look no further than the recent wrangling over Nextel's consensus plan.

The battle has heated up with almost daily jabs and punches between
carriers. (First clue: there isn't a consensus.) But with all of the
emotional tugs from points, counterpoints and finger-pointing, the
industry shouldn't lose touch with the bottom-line issue: public safety
in jeopardy.
Nextel's plan calls for public safety agencies to be moved from the 800
MHz band to eliminate interference issues. Nextel offered to give up
10.5 MHz of spectrum on the 800 MHz band in exchange for 10 MHz on the
1.9 GHz band. The plan would redesignate 1910-1915 and 1990-1995 MHz to
Nextel in exchange for parts of its 700, 800 and 900 MHz spectrum award
from the FCC, which by the way caused the interference issues for public
safety users.

Then the FCC would re-assign the spectrum to public safety and private
wire-less operators while Nextel would kick in $850 million to help with
the reassignment. In the last year, Nextel has amassed support from many
public safety associations, organizations, politicians and even John
Walsh of "America's Most Wanted" fame.
Opponents such as Verizon Wireless remind government of the economic and
competitive benefits of auctions - at least, in theory - and decry the
Pass Go andCollect $200 nature of Nextel's plan. Verizon too has lined
up support from the Hill, though it is not entirely clear how dedicated
those 23 members of Congress are to the subject.

Back in Nextel's camp, the Direct Connector continues to pluck
heartstrings with claims that lives will be lost or compromised if
emergency services don't get interference-free spectrum. On its Web
site, the carrier features a quote from the city representatives of
Denver, a city plagued with interference issues, to the FCC saying,
"Attempting to fix interference problems after discovery is a high
stakes whack-a-mole game, and life is the ultimate loser." Recent
promotions even suggest it is unpatriotic to be against the consensus
plan.
Nextel accuses its opponents of putting self-interest ahead of the
public safety's first responders. And from there you can expect more of
the same until an FCC decision is rendered. However, as we wait for this
issue to be sorted out, let's keep four things in mind.

First, no one, not even the opponents of Nextel's plan, wants fire,
police or emergency personnel who are racing up smoky stairwells or find
themselves in other dire situations to be faced with garbled, fuzzy or
blocked calls.  It is clearly a concern for every carrier as much for
their civic mindedness, concern for community and desire to maximize the
overall effectiveness of their E91 I systems, not to negate them.
Second, all sorts of price tags have been flashed for the cost vs. value
-
$850 million and $7.2 billion represent the ends of the spectrum. Maybe
Nextel will get the sweet or raw deal of the century, who knows? But
given the wide gap between what the consensus plan would require Nextel
to kick in and the value of what the company potentially would gain, it
certainly bears further investigation. There's a universe of difference
between millions and billions, just ask Ted Turner or Bill Gates.
Verizon claims putting the spectrum up for auction is the only way to
go.

Although that sounds like the fairest solution, let's not forget the
industry's rather checkered track record with auctions. The U.S. market
still has a bad taste in its mouth from the Nextwave Telecom encounter.
Just because a company bids megadollars doesn't guarantee it will pay
megadollars. And for all of their revenue-generating potential, auctions
take time and cost a lot of money.

Finally, there are intimations that this very subject that is seemingly
pitting the common public safety man against big bad wireless business
could become part of the "consensus building" for the 2004 presidential
campaign and debates.

Imagine President George W. Bush and John Kerry, with tears in their
eyes, regaling some event in which their Uncle Cecil or Aunt Mimi risked
certain death had it not been for interference-free radio
communications.
Please, if we can't expeditiously resolve this for the good of our first
responder agencies, let's do it for ourselves.

http://www.wirelessweek.com/article/CA403406?spacedesc=Departments&stt=000

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