CEO Says Nextel 800 MHz Decision Unlikely This Year
Nextel’s decision on whether to accept the terms of the FCC’s 800 MHz rebanding order probably will slip a month or more beyond the company’s previously stated year- end target date -- CEO Timothy Donahue told us Mon.
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The FCC handed down its massive 800 MHz rebanding order Aug. 6, after approving it 5-0 in July. During an Oct. 22 conference call with analysts, Donahue said he hoped to make a decision by the end of Dec. (CD Oct 25 p1). Last week, various groups responded to a public notice asking for comments on various ex parte filings Nextel has made at the FCC, but the comments produced little in the way of fireworks. Donahue said Nextel was still evaluating the matter.
“Comments were due on the 2nd of Dec.,” Donahue said after a meeting of the Network Reliability & Interoperability Council (NRIC), which he chairs. “We're in the process of going through the comments. Our attitude is we'd very much like to get this done. There are some certain clarifications that we need from the FCC and it’s still in progress.”
Based on the publication date of the Aug. order in the Federal Register, Nextel could put off a decision on the rebanding order until as late as Feb. 7. The FCC is expected to address a number of the more substantial Nextel complaints about the order in a sua sponte order this month; however, that order isn’t yet circulating on the 8th floor.
“It’s difficult to say exactly when we'll make a decision because there is a lot of information yet we have to go through,” Donahue said. “I can tell you my attitude is we'd like to do it sooner rather than later but it’s just a matter of getting through the information, understanding the clarifications and then making a decision… We're on track. We feel pretty good about it. We're just trying to see if we can get the final clarifications, and we'd like to move ahead.”
Meanwhile, in a late filing, the United Telecom Council, the National Rural Electric Cooperative Assn. and the American Water Works Assn. asked the FCC to hold Nextel to its commitment to pay at least $4.8 billion for the 1.9 GHz spectrum it will get under the rebanding plan. The groups said they're “confident that the FCC will continue to require the carrier to fund the retuning of all incumbents in the 800 MHz and 1.9 GHz bands as set forth in the” 800 MHz order.
“However, in an abundance of caution, we stress that, whatever the value of Nextel’s returned spectrum, that figure - changed or not -- must not reduce Nextel’s responsibility to fund relocation fully,” the groups said. “The $4.8 billion provided in the [report and order] must remain the minimum amount of Nextel’s indebtedness, whatever value of returned spectrum is added to the costs of retuning.” - Howard Buskirk