WASHINGTON—The team designated by the Federal Communications Commission to manage the reconfiguration of the 800 MHz band necessary to solve public-safety interference reported that it has billed nearly $30 million since it was chosen in the fall of 2004, and that fees and expenses for the fourth quarter of 2005 were $600,000 less than the estimate. But the 800 MHz Transition Administrator cannot say whether total costs will be less than the original estimates since Sprint Nextel Corp. has yet to file any expenses.
The FCC in 2004 said it wanted to reconfigure the 800 MHz band, changing it from slices of various types of licenses—public safety, enhanced specialized mobile radio and private wireless—to a band with three distinct sections: public safety, cellular and non-cellular.
Sprint Nextel is paying to retune public-safety and private-wireless licensees in the 800 MHz band. As part of the deal, Sprint Nextel is giving up 700 MHz and some 800 MHz channels in return for 10 megahertz of spectrum in the 1.9 GHz band. The FCC has valued the spectrum Sprint Nextel is returning at $2.059 billion. The spectrum Sprint Nextel is receiving in the 1.9 GHz band is valued at $4.89 billion, according to the commission. Sprint Nextel must make a payment to the U.S. Treasury if the retuning costs and the Sprint Nextel spectrum credit do not equal $4.86 billion. Sprint Nextel may also claim its retuning costs as part of the plan so the fact that the nation’s third-largest wireless carrier has not sought reimbursements for any of its expenses is a significant missing piece of the puzzle.
“Our highest priority is on incumbent licensees, including public safety, and making certain that we agree on costs and completing those transactions as quickly as possible. That said, Sprint Nextel is currently working with the TA to determine how our costs are calculated and credited. Once that process is complete, we will begin submitting our expenses,” said Sprint Nextel spokesman Tim O’Regan.
The FCC selected an outside team to manage the 800 MHz reconfiguration and required it to file quarterly progress reports.
The TA reported significant progress in the fourth quarter of 2005. “Although there were many challenges and lessons learned during this initial period, the TA finds that the reconfiguration process is largely working as intended by the FCC. However, in looking at what lies ahead in 2006, the TA also believes that all stakeholders must intensify their efforts if the program is to remain on schedule,” according to the report, filed late Wednesday.
The first stage of the reconfiguration was moving private-wireless licensees in the part of the country known as Wave 1. The TA reports that 47 percent of the necessary final retuning agreements have been completed.
One of the biggest hurdles the TA faced in the first quarter of 2006 is the number of retuning agreements that were sent to it for alternative dispute resolution. After voluntary and then mandatory negotiations fail, then the parties enter the ADR process. If this is unsuccessful, the TA refers the case to the FCC for final resolution. While the number of ADRs—172 out of a total of 369—was high, the TA is only sending six cases to the FCC since 152 reached final agreement and 14 were given additional time.
The TA said that all parties need to engage in all stages of the negotiations. “Perhaps the most significant lesson learned from the past eight months is that negotiations between parties must begin as soon in the process as possible. Early and frequent dialogue is essential in framing the key issues to be resolved and to ensuring that adequate time is available in the schedule to resolve them,” said the TA.
A reoccurring sticking point may have been resolved recently when Sprint Nextel and the State of Utah signed a planning-funding agreement and announced it hopes to have a completed frequency relocation agreement by June 30.
The Utah Communications Agency Network serves 115 public-safety agencies covering 12 counties and 85 percent of the population of the Beehive State. The UCAN-Sprint Nextel agreement represents a milestone of sorts since it is the first large system to use the TA’s new system for planning funding.
The issue of planning funding has been bubbling under the surface of the 800 MHz rebanding process for months. Public-safety licensees say it is difficult for them to enter negotiations unless they know they will be reimbursed for their troubles. When the first wave of licensees entered the mandated alternative dispute resolution process late last year, funding was one of the first issues addressed. The second wave is already well into the negotiation process. The TA recently said it was taking a more proactive role in the planning-funding process.
