Nextel Lays Out Objections to 800 MHz Rebanding Plan
Nextel made its most complete filing yet on its concerns about the 800 MHz rebanding proposal published by the FCC on Aug. 6. Most issues raised were highly technical, but Nextel continues to put the most emphasis on financial issues.
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A key issue Nextel has been raising is whether the order made 2 major financial miscalculations. First, Nextel is arguing, the FCC erred in not giving it back $400 million to reimburse the costs of filtering equipment it will need to install to make available to public safety the additional 2 MHz in the 800 MHz band it offered in June, in the closing days of negotiations over the FCC’s order.
Second, Nextel is arguing that the Wireless Bureau erred in how it calculated the value of the spectrum it will receive at 1.9 GHz as a key part of the plan. In the order, the FCC looked at several possible benchmarks -- and low proposals by Nextel and a high proposal by Verizon Wireless -- before concluding that the proper per-MHz POP price is $1.70. That translates to $4.86 billion for 10 MHz nationwide. Based on Nextel’s proposal, the carrier is now asserting, the real price should be $300 million- $700 million less.
However, the financial issues may be difficult to address in errata, sources said, and Chmn. Powell doesn’t want to reopen the order, which was years in the making.
“Based on its careful review, Nextel has identified a number of areas in which clarification of the [report and order] will serve the public interest by assuring that 800 MHz band reconfiguration is achieved in accordance with the Commission’s public policy objectives, as noted above,” Nextel said. The company said it emphasized in meetings at the Commission “the importance of operational flexibility for all incumbents during the retuning process and specifically for Nextel as it undertakes repeated retuning of its network on a region-by-region basis to facilitate reconfiguration and accommodate the retuning of other incumbents.”
Among the issues Nextel raised, the carrier asked that the FCC confirm Nextel may operate on all vacated channels below 817/862 during the transition. Nextel also asked for a clarification of some aspects of how it may negotiate with incumbents during the reconfiguration process.
“As we have stated since early Aug., Nextel has been reviewing the 256 page order to understand fully the implications and obligations on Nextel,” a spokesman said Fri. “We have had good discussions with public safety and have begun discussions with the FCC on issues that fall in to two main areas: Can realignment be completed successfully in an efficient way that meets the aggressive milestones set forth by the Commission? Can Nextel continue to operate its network serving its more than 14 [million] customers?”