WASHINGTON-The official wireless world was strangely silent last week with everyone from Nextel Communications Inc. to Verizon Wireless refusing to say what happens now that the Federal Communications Commission has released the details of its plan to solve public-safety interference in the 800 MHz band.
“We have no timetable for when we will respond,” said Leigh Horner, Nextel director of policy communications. “We are taking the time to review the details.”
A senior Nextel executive appeared last week in Montreal at an education session on the FCC’s plan sponsored by the Association of Public-safety Communications Officials. Robert Foosaner, Nextel senior vice president and chief regulatory officer, expressed concern that the FCC did not take the Consensus Plan in its entirety. Foosaner also noted that the 256-page document has internal inconsistencies that make it difficult to digest.
The Consensus Plan was the proposal put forward by Nextel, some public-safety advocates and private wireless entities. The FCC adopted significant portions of the plan but has made some changes including requiring Nextel to pay money into the treasury if the value of the spectrum it returns and relocation expenses do not equal $4.86 billion.
However, analysts were not silent, including one that owns a large chunk of Nextel stock.
Legg Mason Inc., which owns just more than 9 percent of the stock for Nextel, said it expects Nextel to accept the FCC’s plan. It is the second-largest institutional investor in Nextel. Fidelity Management & Research Corp. is Nextel’s largest institutional investor. Legg Mason has never been shy about its relationship with Nextel, even hosting an investor call on the Consensus Plan when it was first presented to the FCC in 2002.
George Reed-Dellinger of Washington Analysis said the FCC took pains to protect itself from legal challenges.
The United Telecom Council, which had fought against Nextel, said it supports the plan in its final form.
“UTC sees more benefits to critical infrastructure and utilities,” said UTC, noting it has been chosen for the transition administrator search committee. “UTC appreciates the FCC’s recognition that critical infrastructure must be grouped with traditional public safety for spectrum-based interoperability and emergency response.”
As part of its plan to solve public-safety interference in the 800 MHz band, the FCC is creating a transition administrator to facilitate the shuffling of the 800 MHz band.
“The transition administrator will perform a variety of administrative functions and mediate or refer to mediation, any disputes that may arise in connection with band reconfiguration. Should any such disputes not be resolved by mediation, the transition administrator will compile a record and transmit it to the FCC,” said the commission. “We believe that reliance on the expertise of our existing frequency coordinators, together with our use of the services of an independent transition administrator is preferable to the Consensus Plan’s proposed Relocation Coordination Committee and multiple committees. Moreover, given the detailed guidelines under which the coordinators and transition administrator will operate, coupled with the procedures for ongoing FCC review, we conclude that commission use of such expertise and services is well within our authority.”
If it accepts the plan, Nextel will pay for the transition administrator as part of the relocation expenses. The transition administrator’s salary and expenses will be included in the credit Nextel receives.
The transition administrator search committee is to meet before Aug. 21, according to the document. This is before Nextel, which is a member of the search committee, is required to say publicly whether it will accept the plan. It does not have to accept the plan until 30 days after publication in the Federal Register.
“The fact the search committee would meet before we know whether Nextel accepts the plan is a way to get things moving as soon as possible,” said an FCC official. “This is something the commissioners thought could be done before we actually know whether Nextel accepts. We have chosen to require an action that can reasonably be taken even before Nextel signs on the dotted line.”
In addition to UTC and Nextel, other members of the search committee are APCO, the Industrial Telecommunications Association, which represents private-wireless users, and SouthernLinc.
SouthernLinc is part of a group of non-Nextel economic area licensees that also must accept the plan. SouthernLinc and Nextel said in June that they are negotiating how to reconfigure the licenses so that both operate in the cellular band.
The FCC also is relying on the fact that Nextel owns 30 percent of Nextel Partners Inc. and can use that influence to make the plan work.
Nextel Partners is expected to move the same way as Nextel, but will not receive spectrum in the 1.9 GHz band, said Michael Wilhelm, chief of the public safety and critical infrastructures division of the FCC’s Wireless Telecommunications Bureau.
Also, Nextel Partners will not be expected to pay relocation expenses, said Wilhelm. “It is Nextel itself that must provide for all of the funds for reconfiguration. If Nextel wants to go to Nextel Partners to help pay for the relocation, that is between them.”
A relatively new opponent to the Consensus Plan decried the FCC’s version and urged Congress to overturn the FCC plan, auction off the 1.9 GHz spectrum and use the proceeds to facilitate public-safety interoperability.
“The commission’s final rule may be a sweet deal for Nextel, but it leaves a bitter taste in the mouth of the police, firefighters and emergency medical technicians who would be best served by a more comprehensive approach. Congress can set this mess straight by killing two birds with one stone: the Nextel-created interference problem and the unresolved interdepartmental communications problems highlighted in recent days in the 9/11 commission report,” said Gene Stilp, coordinator of the First Response Coalition.
Although Stilp’s credentials have been questioned, he assured RCR Wireless News that he cares about solving the interoperability problem facing public-safety. Stilp said he joined the fire community following the terrorist attacks on Sept. 11 as a way to serve his community. He has been certified as a firefighter 2, an emergency medical technician and a hazardous materials technician.
The FCC released the details of its plan after the close of business Aug. 6 and adopting the plan July 8. Nextel has said it would not comment on the plan until the full text was released.
Some of the specifics included in the decision are:
c That the band reconfiguration be completed in phases within three years from the public notice announcing the start date of the reconfiguration. Nextel also would have to meet interim benchmarks at 18 months or face potential fines or other penalties.
c Nextel gives up spectrum at 700 MHz and 800 MHz, but not 900 MHz, in exchange for nationwide authority to operate in 10 megahertz of spectrum at 1910-1915 MHz and 1990-1995 MHz. Nextel must reimburse UTAM Inc. and other incumbents for relocation costs within 30 months.
c Nextel must secure its commitment to pay all relocation costs with an irrevocable letter of credit for $2.5 billion.
c At the end of the 36 months, when the re-banding process is completed, Nextel would be given a $1.607 billion credit for relinquishing rights in the 800 MHz band.
c The commission set technical specifications defining “unacceptable interference.”
