Subject: [NEXTEL-1] `CONSENSUS' PLAN OPPONENTS SEEK SUPPORT OF WHITE HOUSE

From: Marcelrf <[email-masked]>
Date: Wed, 17 Mar 2004 19:37:21 -0500

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`CONSENSUS' PLAN OPPONENTS SEEK SUPPORT OF WHITE HOUSE

Opponents of the 800 megahertz band "consensus" plan today asked
President Bush to support their "balanced approach" proposal for
resolving commercial interference to public safety agencies and
criticized a letter FCC Chairman Michael K. Powell sent this week to
23 House members on the proceeding.

"At a time when our public safety community is desperately short on
funds for homeland security, it is remarkable that the FCC would
consider giving away spectrum worth billions of dollars to a private
company, in order to solve a problem created by that same company,"
said the letter to President Bush signed by some members of the
coalition backing the balanced approach.  "These funds could be used
to provide first responders with more modern communications systems
or to satisfy other homeland security needs."

The letter was signed by the United Telecom Council, the Cellular
Telecommunications & Internet Association, the American Gas
Association, the National Rural Electric Cooperative, the American
Public Power Association, the American Water Works Association,
and the Association of Metropolitan Water Agencies.  Four major
public safety organizations that back the consensus plan sent a letter
to
Mr. Bush in January.

Under the consensus plan, Nextel Communications, Inc., would
receive 10 MHz of spectrum in the 1.9 gigahertz band in exchange for
frequencies it would return in the 700 MHz, 800 MHz, and 900 MHz
bands; the carrier would pay up to $850 million to relocate public
safety and private wireless incumbents.  The balanced approach would
rely mainly on technical rule changes and the use of "best practices"
rather than rebanding.

However, three members of that coalition - Verizon Wireless, Cingular
Wireless LLC, and AT&T Wireless Services, Inc. - have said that if
the Commission decides to realign the 800 MHz band, it should not
involve other frequencies and should order Nextel to pick up the
relocation costs of all licensees.  They have argued that the value of
Nextel's spectrum would increase by billions of dollars in a
realignment because it would be contiguous.

A draft order that began circulating among Commissioners last week
calls for a realignment of the 800 MHz band and for Nextel to receive
the 1.9 GHz band spectrum, according to sources.  Nextel would be
responsible for picking up all of the relocation costs of public safety
and private wireless licensees and would have to pay the difference
between those costs and the value of the 1.9 GHz band spectrum, the
sources said.  FCC officials hope Commissioners will be able to vote
on the order at their April 15 meeting, although they acknowledge that
such a timeline could be too optimistic.

Opponents of the consensus plan held a Capitol Hill news conference
today to draw attention to their case.  Speaking at the news conference
were Rep. Vito Fossella (R., N.Y.); Jill Lyon, vice president and
general counsel of UTC; Brian F. Fontes, VP-federal relations for
Cingular; and Citizens Against Government Waste President Thomas
A. Schatz.

Rep. Fossella, one of the House members who signed the letter that
Mr. Powell responded to this week, said the FCC should auction the
1.9 GHz band spectrum and suggested lawmakers would be willing to
introduce legislation to create a trust fund that could be used to help
public safety agencies.  He acknowledged, however, that such a bill
might not "go quickly" in light of the fact that other spectrum
relocation fund legislation is still pending in Congress.

If the FCC decides to grant Nextel the 1.9 GHz band licenses, "then, at
a minimum, Nextel should pay fair market value for the spectrum that
they seek to obtain to help pay for the transition," he said  In a
statement released later, Rep. Fossella said he supported rebanding of
the 800 MHz band frequencies.  But he noted that agencies in New
York and other states have expressed concern that Nextel would not
provide sufficient funding to pay for all of the relocation costs under
the consensus plan.  If that happens, he said, "the taxpayers will
likely
be forced to foot the bill."

Mr. Schatz complained that granting Nextel the 1.9 GHz band
spectrum for free rather than auctioning it amounted to "corporate
welfare."  "This is very valuable property that's owned by the United
States taxpayer, not for somebody to give away in negotiations with
one company," he said.

Mr. Fontes argued that there is "legal precedent" for the FCC to force
an entity that causes interference to pay to resolve it and benefits
from
rebanding to pick up the relocation costs of other licensees.  Nextel
has
disputed that the Commission has such authority and contends that its
spectral and financial contribution would be worth more than $2
billion more than the value of the 1.9 GHz band frequencies.  A study
submitted by Verizon Wireless contends Nextel would get a windfall
of $6.5 billion; CTIA attacked Nextel's numbers in an ex parte filing
today.

In the letter he sent to House members Monday, Mr. Powell suggested
that any FCC effort to force Nextel to pay the relocation costs of
public safety and private wireless licensees as part of a realignment
could face the wrath of a court.  He also indicated he backed Nextel's
contention that such a realignment wouldn't increase the value of its
800 MHz band spectrum.

Mr. Fontes today criticized Mr. Powell's statement that 800 MHz band
interference couldn't be solved without using frequencies from other
bands because of the need for "green space" - channels to house
systems temporarily.  Mr. Fontes said other wireless carriers have
transitioned to digital technology without the benefit of such green
space, adding, "I don't understand the unique carve out for one
company."

Mr. Fontes also questioned Mr. Powell's suggestion that the
Commission would revisit whether Nextel would receive a benefit
from contiguous 800 MHz band channels if it adopted a technology
other than its  iDEN (integrated digital enhanced network) system.

Regarding Nextel's reimbursement of public safety retuning costs, Mr.
Fontes said many localities have restrictions on agencies taking money
from companies for public works projects.

During today's news conference, the representative of a firefighters
group stood up to criticize the speakers and defend the consensus plan.

"I don't like this, and I'm going to tell my people I don't like this,"
said H. Edward Woods Sr., legislative chair for the Maryland Fire
Chiefs Association.  He said representatives of Nextel have visited
fire
houses around his state to solicit views on actions the carrier could
take to address public safety interference, adding, "I haven't heard
squat from Verizon, from Sprint, from Cingular."

"We want somebody to fix the problem.  Nextel has offered a
solution," Mr. Woods added, stressing he wasn't working for Nextel.
He suggested that some companies are opposed to the consensus plan
because of "greed."

"I'm not here to bash Nextel," Mr. Fontes replied.  "I'm here to
challenge the proposal that they presented before the Commission."
He said that many in the public safety community don't "understand
the implications" of the proposal and how it could actually hurt them,
especially if Nextel's promised funding falls through or is not enough
to cover all of the relocation costs. - Paul Kirby, [email-masked]

http://www.tr.com/online/trd/2004/td031704/index.htm
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