WASHINGTON-Verizon Wireless and Nextel Communications Inc. say they have buried the hatchet on several issues.
The truce included the companies dropping their lawsuits against each other and a pledge by Verizon Wireless to stop protesting the Federal Communications Commission’s plan to solve public-safety interference in the 800 MHz band. In addition, Nextel said it will stop complaining about how Verizon Wireless is marketing its walkie-talking service.
“The two companies are dismissing their pending lawsuits against each other and releasing each other from all other existing claims. Nextel also agreed to forgo any trademark and other ownership rights to the phrase `push to talk,’ `PTT,’ and all related `PUSH’ names. Both parties retain the right to utilize those terms in connection with the marketing of their services. Verizon Wireless has agreed not to oppose the FCC’s decision to realign the 800 MHz band, including Nextel’s receipt of spectrum in the 1.9 GHz band,” according to a joint statement from the companies.
At present there are no legal documents available and other terms of the settlement were not disclosed.
The settlement means the FCC can move forward with its 800 MHz plan without fear of a costly and time-consuming lawsuit from Verizon Wireless. But there are other economic area 800 MHz licensees that are frustrated with the FCC’s 800 MHz plan. These carriers, either individually or collectively, could still take the plan to court. In September, FCC Chairman Michael Powell urged Congress to codify the FCC’s 800 MHz plan to thwart any litigation, but Congress left town without considering the issue.
“Although we were confident about our litigation position, we are pleased that the parties have reached this agreement. Importantly it will allow us to move forward with our 800 MHz plan and the corresponding homeland security and public-safety benefits that flow from that decision,” said Bryan Tramont, FCC chief of staff.
Verizon Wireless had claimed the FCC violated the Communications Act by saying it would modify Nextel’s 800 MHz licenses to include spectrum in the G-block. Before the FCC announced its 800 MHz plan in July, Verizon Wireless had said commissioners could be held individually liable for violating the Miscellaneous Receipts Act. The Government Accountability Office is preparing a legal document on the MRA implications of the FCC’s 800 MHz plan.
Public safety was ecstatic. “A very good thing for public safety! Prayers answered, Amen!” exclaimed Charles Werner of the Charlottesville Fire Department and a frequent advocate for 800 MHz rebanding.
The Association of Public-safety Communications Officials urged the FCC and Nextel to resolve all of the remaining issues so rebanding can move forward.
“We urge Nextel and the FCC to proceed as quickly as possible so that all 800 MHz licensees can move towards implementing the 800 MHz rebanding, which will end dangerous interference to public-safety radio systems,” said APCO President Greg Ballentine.
Nextel has asked the FCC to clarify some issues in the 256-page order and the agency in turn has asked the wireless industry to comment on these clarifications. All of this has happened while the wireless industry still waits for publication of the FCC’s plan in the Federal Register.
In the end, Nextel is expected to accept the plan, said Ric Prentiss of Raymond James, commenting in an investor note about the Verizon Wireless/Nextel truce.
“Great news for wireless companies. Verizon Wireless is (in our opinion wisely) dropping the fight with Nextel over the FCC spectrum decision. This paves the way for Nextel to announce its high-speed wireless data technology decision by early 2005 and start actively building out its third-generation network in 2005 and 2006 using the new spectrum critical for Nextel,” said Prentiss.
On the PTT issue, Nextel had objected strongly to Verizon Wireless’ use of the term and other similar terms in advertising materials, with Nextel claiming the terms were trademarked. However, critics have argued that the word “walkie-talkie” and other phrases have been around since World War II.
