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800 MHz resolution delayed -again Page I of 5 .r;rH ae7 n., ,-,-.u,: - nrr. ;c s-,~;~s - rt o.,-~-v . n:+t ~,ierntte ~ mr~...r:~~ .KStt S00 MHz resolution delayed -again By Donny Jackson Mobile Radio Technology, May 1, 2004 Afier nearly two years waiting for the Federal Communications Commission to address interference problems at 800 MHz, anxious public-safety officials have been outspoken in their disappointment that the FCC did not issue an order last month as expected. "It's frustrating because we need to get a solution," said Bob Gurss, director of government affairs for the Association of Public-Safety Communications Officials International (APCO). "Every day we delay is another day people are at risk." But the matter has become increasingly complex, with Verizon Wireless vowing to bid at least $5 billion for the 1.9 GHz replacement spectrum earmarked for Nextel Communications and reports that the FCC might substitute 2.1 GHz airwaves for the 1.9 GHz frequencies contained in the proposal. Political pressures aze significant -Congress wants the revenue a spectrum auction would bring, while the security-conscious Bush administration wants the matter addressed before it becomes a potential election issue. "The administration is driving this. They want this done, and they want it done now," said Precursor wireless strategist Rudy Baca, who believes an FCC order is imminent and that the commission likely will take more of a "hazd-line" position with Nextel than it has in the past. Patrick Comack, telecom analyst for Guzman & Co., disagreed with the amount of leverage the FCC has, noting his belief that "Nextel can walk" if it doesn't like the terms. However, Comack echoed Baca's opinion that the administration is playing a big role, which he believes will benefit Nextel. "I guarantee you, President Bush did not spend time in [Nextel CEO Tim] Donahue's box at Daytona to talk about race cars," Comack said. But another source close to the negotiations indicated a deal might not happen until the FCC's meeting on May 13 "at the earliest," because there's no easily identifiable way to resolve all parties' interests. In an effort to resolve interference problems for public safety, the FCC is considering a staff report based on the framework of the so-called Consensus Plan, initially proposed by Nextel and which is supported by most major public-safety organizations. Under the Consensus Plan, interleaved spectrum at 800 MHz would be rebanded to provide contiguous spectrum for public safety and contiguous spectnam for Nextel. Nextel agreed to pay $850 million for the retuning of radios associated with rebinding and also would give public safety 4 MHz of additional spectrum that law-enforcement officials claim is sorely needed. In return, Nextel is seeking 10 MHz of nationwide spectrum at 1.9 GHz, which it would use to provide ATT. I http://iwce-mrt.com/microsites/magazinearticle.asp?mode=print&magazinearticleid=198444... 6/24/04