Donahoe: Nextel Could Survive Without 1.9 GHz Spectrum
Nextel CEO Timothy Donahue said his company could survive without the 1.9 GHz spectrum it’s to receive through the 800 MHz rebanding plan, if it rejects the plan. Donahue, who spoke Thurs. with reporters at some length for the first time since the order was approved by the FCC in July, also expressed confidence that the company’s concerns can be addressed through an erratum in coming weeks.
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Donahue indicated he disagreed with the contention of some financial analysts that the 1.9 GHz spectrum provided by the rebanding order is critical to Nextel’s growth: “We have our 800 [MHz] spectrum, which is extraordinary spectrum. We also have 900 spectrum, so have now about 21 contiguous MHz of spectrum at 800 and 900… We also have been acquiring 2.5 [GHz] spectrum. I think we have on average 90 MHz or so in the top 60 cities across the country. It’s not an issue that we're on our knees or that it’s critical for us to get this.”
The FCC should be able to make needed changes to the order through an erratum and Nextel hasn’t given much thought to filing a more formal petition for reconsideration, Donahue said. Nextel has been asking the Commission to change several key parts of the order on its own volition, a request strongly opposed by competing carriers (CD Sept 24 p9). “The people that are in the know on this subject have assured me that erratum will work,” he said. “We'll see if the FCC has the same reading of that as we do… I do really have a high degree of confidence that this can be done through the erratum process.”
Donahue also said the Nextel board has been briefed on all aspects of the order, which was released Aug. 6. “This has been a process that’s been going on, what, two and half years?” Donahue said. “Trust me when I tell you that our board has been kept up to speed at every turn. The board knows exactly where we are. The board is very supportive of management’s position.”
A decision is close, Donahue said: “I am very confident that we're getting to a point where we can be satisfied and the FCC can be satisfied… I would very much like to move forward and to accept the order and to get on with retuning public safety and stopping interference. I think the FCC is of the same mind. I think there isn’t anything in that order that we are necessarily opposed to. What we want is more granularity and more clarity around 2 or 3 of the issues.”
Donahue also said the order was “very complex and complicated,” at “over 250 pages with I think 1,000 footnotes.” But he said Nextel’s analysis is at this point largely complete. “We needed time to digest all of the issues that are inside the order. We have had that time. We have sat down with the FCC and we have ben trying to get some clarification and clarity around some of the issues.” - Howard Buskirk