The FCC’s decision giving Nextel 1.9 GHz spectrum as part of the 800 MHz rebanding doesn’t violate federal law against private sale of public resources, the GAO found. Verizon dropped its legal objections to the rebanding order last week, and the GAO action was one remaining area of uncertainty (CD Nov 3 p1).
Nextel and Verizon Wireless Tues. called a truce ending their fight over the FCC’s 800 MHz rebanding order. Under an agreement, Verizon won’t oppose the plan, which will give Nextel 10 MHz of 1.9 GHz spectrum nationwide. In return, Nextel dropped a lawsuit against Verizon challenging its use of the term “push to talk,” “PTT” and all related terms. Nextel said it wouldn’t pursue trademark or other claims.
The FCC is likely only days away from a public notice (PN) seeking comments from the industry on issues that have been raised by Nextel as part of the 800 MHz rebanding order. The wireless advisors received the PN Tues. afternoon. A Commission source said release was “imminent.”
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.
Motorola is making the case on Capitol Hill that after the DTV transition 30 MHz more 700 MHz spectrum should be approved for public safety, for streaming video and other more “robust” applications that wouldn’t be supported by the 24 MHz currently destined for public safety. The Motorola proposal, which will be discussed during a presentation today (Thurs.) on the Hill, asks for 3 times the 10 MHz of additional spectrum sought by the Spectrum Coalition for Public Safety.
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.
Nextel’s broadband future relies on it getting 1.9 GHz spectrum but that’s far from assured, the Precursor Group said Wed. in a research note. Precursor warned that based on its reading of tea leaves the 800 MHz order isn’t likely to survive an almost inevitable legal appeal. However, Legg Mason is taking a less negative view. “[Nextel’s] successful narrowband past is unlikely to be repeated in the evolving wireless broadband future,” wrote Rudy Baca, wireless and media analyst. “While NXTL is likely to continue growing its narrowband business in the short-term, we believe the FCC’s 800 MHz decision is unlikely to survive administrative or judicial review -- putting NXTL back to square one in transitioning to a broadband future.” Precursor noted that “tellingly” -- while Nextel scored a “big regulatory win” -- it still hasn’t signed off on the agreement. “In the end, Precursor believes NXTL is highly likely to sign onto the FCC’s decision because it has no other viable alternative,” Precursor said: “Without the deal, NXTL lacks spectrum to compete in a broadband future.” From Nextel’s viewpoint there are negatives tied to the 800 MHz rebanding plan the FCC approved in July and released Aug. 6, Baca said: “Precursor believes the chief negatives for NXTL are the cost of the deal, which is much more than NXTL wanted or expected, and the very high risk that the decision is overturned on appeal -- at least the 1.9 GHz replacement spectrum part.” Legg Mason analyst Rebecca Arbogast told us she was on the whole impressed with how the FCC acquitted itself in its rationale for the rebanding. “I believe that the spectrum swap raises many legal issues of first impression, which means it could still go either way when it gets to court,” she said Wed. “I've always been sensitive to the risk that the structure of the swap might not pass muster with the courts, but having read the FCC’s justification, in my view it is well done, and I've revised upward my assessment that the courts will ultimately uphold the order. It could, however, still take a while before we get a final decision.”
The FCC should deny an IEEE 802.18 Radio Regulatory Technical Advisory Group request to extend the comment deadline for a proceeding on the use of the white spaces between TV channels, opponents said. Intel told the Commission a proposed 6-month delay was unnecessary and would hurt the progress of technology. The “white spaces” in the TV spectrum could be used for new services, including broadband wireless.
MONTREAL -- FCC Chief of Staff Bryan Tramont said at the APCO conference here that, with the 800 MHz order out, the Commission will make the digital TV transition “the primary policy imperative of the agency” the next 6 months. Tramont, speaking on a panel of top FCC staffers, said Chmn. Powell is eager to establish a date certain for the transition, which will provide 700 MHz spectrum for public safety.
MONTREAL -- Nextel officials were still reviewing the Commission’s 800 MHz rebanding report on Mon. The order, released late Fri. (CD Aug 8 Special Report), spells out in detail how the rebanding will work, potential penalties Nextel faces for noncompliance, and milestones for completion. A few critical issues remain, especially working out agreements with Canada and Mexico on cross-border issues, officials said, and the rebanding requires Nextel’s agreement.