WASHINGTON-Nextel Communications Inc. and the rest of the wireless world will have to wait a bit longer.
The Federal Communications Commission late Thursday put out its agenda for its meeting May 13 and again rules to solve the public-safety interference problem in the 800 MHz band were absent. It is now believed the FCC will release the rules after voting in private.
The continuing delay meant that each side had more time to lobby, and they did on Thursday, with Nextel filing a critique of a spectrum appraisal filed by Verizon Wireless and Verizon, releasing to the press a letter from a senator critical of Nextel’s Consensus Plan.
The American Appraisal Associates said Verizon’s consultant, Kane Reece Associates Inc., used faulty assumptions in determining the value that Nextel would receive under the Consensus Plan.
“Given the number of inaccurate financial assumptions and errors of methodology of the Kane Reece analysis, we must reject their valuation conclusions,” said Richard Billovits, American Appraisal vice president and principal.
Sen. Charles Schumer (D-N.Y.), a frequent critic of the wireless industry, urged the FCC not to give Nextel valuable spectrum in the 1.9 GHz band.
“I write to express my concern about the FCC’s reported plans for resolving the 800 MHz interference problem. I know that the commission shares my view that public-safety communication must be protected from interference resulting from the use of telecommunication technology. However, the solution to that problem should not needlessly disperse valuable public spectrum when other alternatives exist,” wrote Schumer. “I am also concerned that the spectrum Nextel is seeking is a very valuable public resource. Particularly in this time of growing deficits and rising costs of homeland defense and fighting the war on terrorism, we cannot afford to give away such valuable public resources.”
There are at least three different options on the official record.
The Consensus Plan would shuffle the 800 MHz band to eliminate the current situation where public safety, private wireless, Nextel, other SMRs and cellular carriers are intermingled. In exchange for giving up spectrum in the 700 MHz, 800 MHz and 900 MHz bands and for paying to retune public safety and private wireless, Nextel has asked for 10 megahertz in the 1.9 GHz band. It is supported by Nextel, the Industrial Telecommunications Association representing private-wireless interests, and some public-safety advocacy groups.
The FCC’s Wireless Telecommunications Bureau March 9 delivered its plan to the commissioners. The staff proposal closely tracks with the Consensus Plan, requiring Nextel to pay perhaps billions more than the $850 million it said it would pay as part of the rebanding agreement. Nextel would pay all of the relocation costs plus the difference between that amount and “fair-market value” of 10 megahertz of spectrum it seeks in the 1.9 GHz band. The staff proposal reportedly does not require Nextel to relinquish its 700 MHz and 900 MHz spectrum.
The Balanced Approach Plan calls for timely resolution of interference at the expense of the interferer, coupled with technical rules, notification and coordination procedures to prevent new interference. It has been pushed by the United Telecom Council, which represents utilities, and until recently the Cellular Telecommunications & Internet Association.
Finally, late last month CTIA said Nextel should pay $3 billion to cover the rebanding costs of the 800 MHz band but instead of getting spectrum in the 1.9 GHz band, it should get spectrum in the 2.1 GHz band. Nextel would get the 2.1 GHz spectrum as the retuning in the 800 MHz band was completed. The money would also be deposited in a third-party trust fund with protections against bankruptcy. Nextel has publicly rejected this proposal.
