House members expressed concern over the Nextel Consensus Plan in...

safety groups to relocate. The May 5 letter listed 4 concerns: (1) No guaranteed funding for public safety groups. (2) The plan caps relocation funding at $700 million for public safety agencies. (3) The plan will be tied up in litigation for years. (4) Several public safety organizations have expressed similar concerns. The letter raises the concern that public safety groups wouldn’t be able to afford the up-front costs. “This scheme is irresponsible because in order to front the costs, these agencies would initially be required to obtain appropriations from their local government,” the letter said, adding that public safety agencies would then apply for reimbursement from private entities such as a “fund administrator” and a “relocation coordination committee.” “Since neither of these private entities is associated with the United States government, they would not be held accountable for paying the reimbursements.” The letter also said Motorola estimates that Nextel’s projection of $850 million for handset replacement is low. Motorola has estimated that handset replacement could be as high as $2 billion. “If the FCC allows a cap on the already undependable funds for relocation costs, then the public safety agencies would risk imposing significant costs on local governments that could otherwise be avoided by dedicating spectrum auction funds,” the letter said. The members also questioned if the plan would hold muster in court. Noting that several wireless companies have already promised to sue, the members said the plan’s “centerpiece is a transfer of spectrum without the auction required by section 309(j)” of the Telecom Act. Members also doubted Nextel’s claim that the public safety community was behind the plan. The letter noted that the Fraternal Order of Police, the Federal Law Enforcement Officers Assn. and the National Volunteer Fire Council have raised concerns about the plan. Reps. Shimkus (R-Ill.), Strickland (D-O.), English (R-Pa.), Wexler (D-Fla.), Bachus (R-Ala.), Engel (D-N.Y.), Brady (R-Tex.), Green (D-Tex.), Forbes (R-Va.) and Barrett (R-S.C.) also signed the letter.