Countering a proposal by the Cellular Telecommunications & Internet Association that would grant spectrum in the 2.1 GHz band and force the carrier to pay at least $3 billion for spectrum realignment costs in the 800 MHz band, Nextel Communications Inc. reconfirmed its commitment to the proposed Consensus Plan, which calls for the carrier to receive spectrum in the 1.9 GHz band in addition to financial contributions it claims are worth more than $4 billion for spectrum realignment.
“Nextel is gratified that after more than two years of delay, the Cellular Telecommunications & Internet Association and its members companies, including Verizon Wireless, have endorsed the basic structure of the Consensus Plan, which includes a realignment of the 800 MHz band and the assignment of replacement spectrum to Nextel in return for its substantial contributions,” Nextel said in a statement. “However the association’s attempt to fundamentally alter the terms of the Consensus Plan only serves to delay a timely [Federal Communications Commission] decision and is clearly an attempt to penalize Nextel and it shareholders.”
Nextel also released portions of a letter Tim Donahue, Nextel president and chief executive officer, sent to FCC chairman Michael Powell claiming the Consensus Plan “exceeds every goal you and your fellow commissioners established for this proceeding,” including eliminating interference, providing additional spectrum for public safety and minimizing disruptions for incumbent 800 MHz licensees.
Donahue also dismissed CTIA’s proposal that Nextel should receive spectrum in the 2.1 GHz band, which was part of the original Consensus Plan filed in 2001, citing a lesser-perceived value for the spectrum compared with 1.9 GHz spectrum.
“My responsibility to Nextel’s shareholders requires that Nextel obtain comparable value in any retuning transaction,” Donahue wrote. “2.1 GHz does not meet that test. Nextel cannot and will not accept that result.”
