DISSENTS POSSIBLE AS POWELL CHANGES STANCE ON NEXTEL PLAN
FCC Chmn. Powell is proposing an 800 MHz rebanding plan that would require Nextel to pay for public safety retuning, but not the value of the spectrum itself, unlike an earlier proposal that had been floated, sources said Wed. The order also would require Nextel to provide an additional 2 MHz at 800 MHz as a buffer for public safety communications, a proposal made by the carrier in June.
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The 2 Democrats on the Commission, Copps and Adelstein, are the most likely to dissent, though no decisions had been made at our deadline. Powell and Comr. Abernathy, who had reservations about giving Nextel 1.9 GHz spectrum, have signed off on the plan. Comr. Martin, the 3rd Republican, is viewed as the key vote.
“There’s a lot of potential for last minute deals, because the chairman would really like a unanimous decision,” said a regulatory attorney. While details were somewhat fluid, one source confirmed that under the latest iteration Nextel would have to set aside $2 billion-$3 billion to pay for retuning, though some of that amount could later be returned to the carrier.
Not requiring Nextel to pay for the 1.9 GHz spectrum per se, just retuning costs and contributed spectrum, could potentially innoculate the FCC against some claims it violated the Anti-Deficiency Act and the Miscellaneous Receipts Act by illegally selling off spectrum, some said. Verizon and Sen. Lautenberg (D-N.J.) raised those issues last week.
On Fri., staffers for Copps called Nextel representatives in for a meeting, asking the carrier to reiterate the details of its proposal. Nextel said in a filing Tues. questions arose about “Nextel’s spectral and financial contributions” to the 800 MHz “consensus” plan. Nextel cited costs including $850 million for retuning public safety, $400 million for Nextel’s own 800 MHz retuning costs, $407 million for additional filters at Nextel’s base stations and $527 million for clearing the 1.9 MHz spectrum. Nextel cited spectrum contributions including 4.5 MHz at 800 MHz and 4 MHz at 700 MHz worth almost $4 billion. Nextel has set the value of the package at $5.4 billion.