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Time Trippin’: Spectrum swaps; Execs profit from Sprint-Nextel … 8 years ago this week

Editor’s Note: The RCR Wireless News Time Machine is a way to take advantage of our extensive history in covering the wireless space to fire up the DeLorean and take a trip back in time to re-visit some of the more interesting headlines from this week in history. Enjoy the ride!

Spectrum swapping, consolidation shake carriers’ spectrum holdings
Wireless carriers’ spectrum positions have changed radically during the past six months due to industry consolidation, spectrum auctions and other spectrum deals. These changes have been driven mostly by the country’s larger operators, which-in addition to supporting an increasing number of wireless subscribers-are being more aggressive in launching spectrum-hungry data services. While the amount of spectrum available to carriers has remained at 170 megahertz for nearly a decade, the distribution of that spectrum has shifted. The country’s five nationwide operators control all of the spectrum in six of the nation’s top 30 markets. Just three years ago, the six nationwide carriers did not control all of the spectrum in any of those top 30 markets. Those exclusive markets include New York; Philadelphia; Washington, D.C.; Boston; Seattle; and Baltimore. … Read More

Donahue, Forsee to gain major bonuses if merger closes
Nextel Communications Inc. President Timothy Donahue and Sprint Corp. Chairman Gary Forsee are eligible for major bonuses following the completion of their companies’ proposed $35 billion merger later this year. According to documents filed Tuesday at the Securities and Exchange Commission, Donahue and Forsee each could be paid a minimum performance-based bonus of $10 million in the first year following the closing of the transaction and another $10 million bonus each the following year. The SEC filings amend both executives’ employment agreements with their respective companies. … Read More

New phone recycling programs give consumers options
A handful of new wireless recycling initiatives were announced at last week’s CTIA Wireless 2005 show. A new phone recycling program by GRC Wireless Recycling pays companies for their unwanted inventory of retired cellular phones. The company’s Wireless Industry Recycling program pays companies at least $1 per pound for phones shipped to GRC’s facility in Mirimar, Fla. GRC said it pays for shipping and recycling of the phones. … Read More

New youth-oriented MVNO using Verizon Wireless’ network planned
Amp’d Mobile, a mobile virtual network operator that targets the youth market, has signed a letter of intent with Verizon Wireless to develop a fully integrated MVNO for youth and young adults using Verizon’s broadband EV-DO network. The service is expected to launch during the third quarter with an entry-level handset from Kyocera and a higher-end model from Motorola Inc. Amp’d said it plans to target users in the 18 to35 age group with mobile entertainment content and both prepaid and postpaid payment options. The company said it will offer its products and services online and through select retail outlets. … Read More

Leap, Dobson sell towers
Both Leap Wireless International Inc. and Dobson Communications Corp. in unrelated deals said that with the help of Daniels & Associates, they are selling and then leasing back towers. Leap is selling 142 towers to Mountain Union Telecom L.L.C. for $18 million. It will then lease back the sites for $1,500 per month per site. … Read More

Consumer safety group working with industry on exploding phone safety
The U.S. Consumer Product Safety Commission today said it is working the wireless industry to develop a safety guide to prevent injuries from exploding cell phones, like the one at issue in a new lawsuit filed by Thailand prosecutors against handset giant Nokia Corp. after a Thai welder reportedly was seriously injured from a phone that ignited in his pocket. According to news reports, the Thai suit was filed last Friday on the recommendation of the country’s Consumer Protection Board. The suit, according to the reports, seeks more than $25,000 in damages for injuries sustained by 50-year-old Prasit Sriseeluang in the March 2004 accident. In addition to amputations of his right leg and five toes on his left foot, news accounts said Prasit’s right hand was seriously injured. … Read More

Cingular Wireless reaches agreement with union
The Communications Workers of America said it reached a tentative agreement with Cingular Wireless L.L.C. on a new contract covering 5,300 workers 15 states and several provinces of Canada. CWA said the accord provides for a wage increase of 11 percent for Cingular workers during the four-year contract term and improves base compensation for retail sales members by more than 25 percent. … Read More

Motient to shut down network in rural areas
Motient Communications Inc. announced it will shut down the rural sections of its network, reducing its DataTAC network coverage from 200 million people to 137 million. The move is not totally unexpected-Motient has been bleeding customers and revenues for years, and has lately been using its remaining cash reserves to increase its stake in Mobile Satellite Ventures. Motient said it would focus on its top 40 markets and would continue to supplement its network offerings by reselling services from Verizon Wireless and T-Mobile USA Inc. … Read More

Rural wireless carriers ask FCC to reject Alltel-Western Wireless merger
The Rural Telecommunications Group trade association, which represents small wireless operators in rural markets, filed a petition asking the Federal Communications Commission to deny Alltel Corp.’s pending acquisition of Western Wireless Corp. RTG cited a lack of information in the acquisition application, potential harm to competition in rural markets and possible anti-competitive roaming practices. The deal, which was announced earlier this year, would bolster Alltel’s position as the largest regional operator with more than 10 million wireless customers and spectrum licenses covering approximately 50 percent of the nation’s land mass. Alltel would also become one of the largest roaming providers in the country with networks supporting analog, TDMA, CDMA and GSM technologies. … Read More

CTIA sets adult content guidelines as Hustler comes to U.S. wireless users
The wireless carrier trade association agreed to produce guidelines for managing wireless porn, even as porn giant Larry Flynt announced plans to enter the U.S. wireless market. CTIA said Tuesday it would add adult content guidelines to its voluntary carrier code of conduct by the second quarter with implementation by the end of the year. Thus far, the group has outlined voluntary policies for labeling content as either unrestricted or available only to consumers ages 18 or older. The guidelines also call for controls and age-verification mechanisms to block minors attempting to access restricted content, CTIA President Steve Largent said. … Read More

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