Nextel, FCC in Standoff Over Prime Cellular Spectrum (Washington Post)

[GoodmanR]

Nextel, FCC in Standoff Over Prime Cellular Spectrum

By Yuki Noguchi
Washington Post Staff Writer
Friday, May 7, 2004; Page E01


Nextel Communications Inc. yesterday made another pitch for valuable new cellular spectrum, as the Federal Communications Commission appeared poised to approve a proposal that would give the Reston-based company less desirable airwaves, a plan Nextel opposes.

In a filing with the FCC, Nextel criticized a study cited by Verizon Wireless that concluded Nextel should pay about $5 billion for the spectrum it wants, far more than it has proposed paying. Nextel filed a study it commissioned from American Appraisal Associates Inc., which said the earlier report contained faulty calculations.

Fire, police and emergency communications systems have complained of interference from Nextel's cellular communications systems.

Nextel has proposed giving up some existing airwaves and paying $850 million to move the public safety users. In return, Nextel wants a swath of spectrum in the 1.9 gigahertz range.

Competitors, as well as some politicians, including most recently Sen. Charles E. Schumer (D-N.Y.), have opposed Nextel's proposal, saying Nextel should pay far more for that spectrum.

The FCC agrees with Nextel that the public safety users should be moved, but a majority of the commissioners appear ready to offer Nextel a slice of less-valuable spectrum in the 2.1 GHz range, said sources close to the FCC.

The commissioners' main goal is to solve the public safety question in a way that would minimize the chance of a serious legal challenge. They also want Nextel to pay to move the public safety users. Initial problems with outages or dropped calls started to appear five years ago, and for the past two and a half years, the FCC has been considering solutions. The FCC can order Nextel to fix interference, but whether the commission can require the company to pay to move public safety groups is unclear.

The Cellular Telecommunications & Internet Association, which includes Verizon Wireless, Nextel's most vocal opponent, said it would endorse a deal that gives Nextel the less-valuable spectrum and requires it to pay $3 billion.

Lawrence R. Krevor, Nextel's vice president of government affairs, said the company would not accept the higher frequency airwaves. Cellular equipment isn't currently made to operate in that range, and Nextel would have to pay more to relocate current occupants in the 2.1 GHz range, he said.

"At this point, we don't see any scenario where 2.1 [gigahertz] comes close to the value" that Nextel is offering, Krevor said. "We are not doing this for charity."

Nextel wants the 1.9 GHz range because standard cellular equipment can be used there. The company's current airwaves make it dependent on a technology made by a single vendor, Motorola Inc. Nextel also needs more spectrum to offer high-speed data services and to continue to carry increasing call traffic.

Some FCC staffers, as well as lobbyists for other major carriers and a source close to Nextel, said they think Nextel would accept the 2.1 GHz range if the FCC were to offer a reasonable price.

"If Nextel walks away, the FCC holds all the cards, because they've created a record showing that they have a public-safety interference problem," said a lobbyist for a rival carrier, who asked not to be named because his information was based on private conversations with commissioners. "It's a question of who's going to blink first."

[GoodmanR]

I think this is the best article I have seen about this...

[agentHibby]

I this article reminds me of the Nextwave Verizon saga back in 2001-2002
I think the FCC should auction off PCS block G nationwide starts off at $5 billion.
If Nextel wins they get the license, if not they pay 3 billion for a AWS (Advanced Wirless Services) 10 MHz (Block C? I think is the one that is 10MHz?) 1700/2100 MHz in the areas they need it. Hopefully by then the millitary has moved off the 1700 MHz area where Nextel will need to move.
Old info onPCS Block G

[jones]

Why can't Nextel just fix the Problem or it can't be Fix?

[ehcruzan]

It's about time the FCC grow some b@11s!

[agentHibby]

Originally Posted by jones

Why can't Nextel just fix the Problem or it can't be Fix?

The real problem is that Nextel wants to go CDMA and phase out iDEN at their own discretion. Since Nextel is a SMR provider, they are required by the FCC to send out iDEN on the SMR band. Nextel can send out CDMA also, but they don’t want to send out both digital signals on the same band so they are causing problems with the band bellow them to change that. Fixing inference with the band for Local emergency responders can be done right now, but that would defeat the purpose. They want a new band with new rules PCS band requires digital (any kind) so they can go CDMA on that band, and hope that before 2010 that they can phase out iDEN on the 900 MHz part of the SMR band they have (problems are on the lower 800 MHz).

[agentHibby]

sorry if I sound kinda harsh toward Netxel. They have great customers and will continue to make an impact in the wireless business.

[GoodmanR]

They won't continue to make a huge impact if they don't get new spectrum. They do not have enough spectrum right now to run CDMA. They need to offer good data services if they wan't to be competitive 10 years down the road, something they are a long way from doing (despite testing in NC)

[DandyDon]

I bet Nextel is working something out with the FCC to use iDEN for public safety......in exchange for a fair price for 1.9.

Nextel also needs more spectrum to offer high-speed data services and to continue to carry increasing call traffic.

hmmmm.... I didn't know that. I thought Nextel owns MMDS spectrum in half the markets for a high speed data network. When 6:1 is released Nextel will double capacity, the average joe reading the story will believe this. A lie told over and over eventually becomes truth I guess.

[GoodmanR]

DandyDon,

I think it is hard to argue that Nextel doesn't need more spectrum. They do, and they need it badly. iDen can't continue to be their standard for all that long. Nextel agrees that they need more spectrum, everyone does, that's why they are pressing so hard for this.

[DandyDon]