Nextel Explains Arguments to FCC on 800 MHz Rebanding
Nextel late Tues. filed the most detail so far on its discussions at the FCC after the Commission’s release of the 800 MHz rebanding order Aug. 6. A Nextel spokesman said the company wanted to put an end to any accusations that the company was trying to renegotiate the report and order after the fact. The Nextel filing contains in some detail the carrier’s arguments on valuation of its spectrum and on how the FCC erred. The filing also confirms meetings this week between CEO Timothy Donahue, Senior Vp Robert Foosaner and 4 members of the FCC (CD Sept 22 p5). Nextel officials also met with FCC Chief of Staff Bryan Tramont.
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“We're not negotiating with the Commission,” the spokesman said: “We're not fundamentally looking to change the report and order. We want to get this done and we believe that this can be done, but there are a number of issues that need to be addressed and they need to be addressed by the Commission.” Despite reports to the contrary, other technical questions not related to valuation “are of great, great concern to Nextel,” the spokesman said. Verizon Wireless in particular has accused Nextel of illegally seeking to renegotiate the order at the FCC (CD Sept 17 p2).
Nextel explained in the filing that its fundamental objection to the valuation of the spectrum it would contribute under the plan concerns the number of POPs, which Nextel charged the FCC had miscounted. “Nextel covers 286 million pops (nationwide coverage) not 234 million,” the company said. The discrepancy “resulted in almost $740 million under-valuation of Nextel’s spectrum contribution.” Responding to a request for more data from the FCC, Nextel also filed Sept. data on its county-by- county spectrum position in all U.S. markets.
The Nextel spokesman said Nextel may not agree with the MHz/pop valuation of $1.70 -- $1.49 for the lower 80 interleaved channels -- but it was not explicitly challenging that valuation. “We're asking that only one metric be changed,” he said: “All of the issues Nextel has raised with the Commission are already central to the order and are largely clarifications that can be addressed easily by the FCC.”
Among other issues, Nextel said the FCC should recognize it will need to add base stations to replace 800 MHz capacity lost in the band reconfiguration. The FCC should “clarify that Nextel should receive credit for these costs, which are integral to achieving 800 MHz reconfiguration.” Nextel asked the FCC to act quickly on its objections to the order: “Clarifying certain aspects of the [report and order] before Federal Register publication will promote this goal, minimize uncertainty and serve the public interest.” - Howard Buskirk