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Powell tells Congress it will cost billions to solve 800 MHz interference

WASHINGTON-It will cost billions of dollars to solve the public-safety interference problem in the 800 MHz band, the FCC Chairman told Congress Wednesday
Powell appeared before the House Appropriations commerce, state, justice and the judiciary subcommittee to defend the Federal Communications Commission’s $293 million budget request for fiscal year 2005.

The 800 MHz band issue was raised by Chairman Frank Wolf (R-Va.) but Wolf confused it with the public-safety interoperability issue, causing Powell to try and explain the similarities and differences between the 800 MHz public-safety interference problem and the inability of public-safety agencies to talk with each other during periods of crisis.

While Powell said the FCC is in the “final innings” of developing rules to solve the 800 MHz problem; the interoperability problem is more complex and will take more time. Powell also said it would probably take congressional action, noting later that some of the spectrum slated to be used for interoperability is still occupied by TV broadcasters.

Meanwhile posturing on the 800 MHz issue continues.

Rep. Vito Fossella (R-N.Y.) Tuesday said he supports rebanding the 800 MHz spectrum but does not support the Consensus Plan because the $850 million in funding proposed by Nextel Communications Inc. may not be sufficient.

“I remain convinced that the most effective solution to this problem is to implement the rebanding provisions of the Consensus Plan,” said Fossella. “I cannot support a plan that gives false hope to public safety but that very likely could leave our nation’s first responders without the resources to fully transition and/or utilize the rebanded 800 MHz spectrum. I believe other more viable and appropriate options exist and urge the FCC to explore selling or auctioning the new bandwidth on the 1.9 GHz band at market value. I believe it is critical that the FCC adopt a plan that rebands the 800 MHz spectrum and also guarantees the level and certainty of funding for public safety to fully and completely transition to the band.”

Fossella and Powell have been exchanging letters regarding the upcoming rules by the FCC. Fossella’s support of rebanding but not of the Consensus Plan shows how the lines of who supports what seem to be fracturing. Recently, two law-enforcement agencies sent letters to President George W. Bush complaining that they were not involved in the development of the Consensus Plan, and they do not believe the relocation funding Nextel has proposed is adequate.

The FCC has been struggling to find the best solution and reportedly the staff’s recommendation more closely tracks with the Consensus Plan developed by some public-safety advocacy groups, private-wireless entities and Nextel. The staff recommendation would require Nextel to pay more than the $850 million it said it would pay as part of the Consensus Plan. Nextel would pay all of the relocation costs plus the difference between that amount and “fair-market value” of 10 megahertz of spectrum it seeks in the 1.9 GHz band. This recommendation was delivered to the commissioners March 9. The FCC hopes to vote on rules at its April 15 meeting, but Powell told House appropriators it might take a couple of months to come to resolution.

The Consensus Plan would shuffle the 800 MHz band to eliminate the current situation where public safety, private wireless, Nextel and cellular carriers are intermingled. Nextel has said that it would pay $850 million for the necessary retuning of public-safety and private-wireless radios. Nextel said it would deposit $100 million in an escrow account and secure irrevocable lines of credit for the remaining $750 million. In exchange for giving up spectrum in the 700 MHz, 800 MHz and 900 MHz bands and for paying to retune public safety and private wireless, Nextel has asked for 10 megahertz in the 1.9 GHz band. The staff proposal reportedly does not require Nextel to relinquish its 700 MHz and 900 MHz spectrum.

On the other side is the Balanced Approach Plan supported by the Cellular Telecommunications & Internet Association and the United Telecom Council. The Balanced Approach Plan calls for timely resolution of current interference at the expense of the interferer, coupled with technical rules, notification and coordination procedures to prevent new interference.

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