Source: http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=5622470
WASHINGTON (Reuters) - U.S. communications regulators on Thursday approved a plan to give Nextel Communications Inc. wireless airwaves it wanted in a swap aimed at ending interference with police, fire and rescue communications.
The Federal Communications Commission voted 5-0 for a plan in which Nextel would receive airwaves in the 1.9 Gigahertz band in exchange for returning other airwaves, including in the 800 Megahertz band where public safety groups operate.
Legal challenges by the carrier's rivals are expected and a review by congressional investigators could delay a final resolution to the plan.
The FCC determined that the airwaves Nextel would receive were worth $4.8 billion and the spectrum the No. 6 U.S. carrier is giving up is worth about $1.6 billion.
Nextel will have to establish a $2.5 billion letter of credit to cover costs incurred by public safety groups whose operations will be reorganized in the 800 MHz band. The agency said it expects the company to cover any costs beyond that amount.
If together the relocation costs, the value of the airwaves it is giving up, and credits for relocating its own services is less than the $4.8 billion value of the new licenses, Nextel would have to make an "anti-windfall payment" to the U.S. Treasury, according FCC Wireless Bureau Chief John Muleta.
Nextel had proposed paying $850 million to cover the costs of reorganizing the 800 mhz band and another $512 million to move some operations by television broadcasters out of the 1.9 Ghz band.
Verizon Wireless, the largest U.S. carrier, has indicated it will challenge the FCC's decision, arguing the airwaves in the more highly prized 1.9 Ghz band should be auctioned to the highest bidder. It has already offered to pay at least $5 billion.
Verizon Wireless, a joint venture of Verizon Communications and
Vodafone Group Plc, had warned the FCC that giving the airwaves
to Nextel in exchange for money could violate criminal laws. The General Accounting Office, the investigative arm of Congress, also plans to look into the legalities of the swap.
Public safety organizations have beseeched regulators to address interference with their communications during critical moments by commercial wireless services like Nextel.
WASHINGTON (Reuters) - U.S. communications regulators on Thursday approved a plan to give Nextel Communications Inc. wireless airwaves it wanted in a swap aimed at ending interference with police, fire and rescue communications.
The Federal Communications Commission voted 5-0 for a plan in which Nextel would receive airwaves in the 1.9 Gigahertz band in exchange for returning other airwaves, including in the 800 Megahertz band where public safety groups operate.
Legal challenges by the carrier's rivals are expected and a review by congressional investigators could delay a final resolution to the plan.
The FCC determined that the airwaves Nextel would receive were worth $4.8 billion and the spectrum the No. 6 U.S. carrier is giving up is worth about $1.6 billion.
Nextel will have to establish a $2.5 billion letter of credit to cover costs incurred by public safety groups whose operations will be reorganized in the 800 MHz band. The agency said it expects the company to cover any costs beyond that amount.
If together the relocation costs, the value of the airwaves it is giving up, and credits for relocating its own services is less than the $4.8 billion value of the new licenses, Nextel would have to make an "anti-windfall payment" to the U.S. Treasury, according FCC Wireless Bureau Chief John Muleta.
Nextel had proposed paying $850 million to cover the costs of reorganizing the 800 mhz band and another $512 million to move some operations by television broadcasters out of the 1.9 Ghz band.
Verizon Wireless, the largest U.S. carrier, has indicated it will challenge the FCC's decision, arguing the airwaves in the more highly prized 1.9 Ghz band should be auctioned to the highest bidder. It has already offered to pay at least $5 billion.
Verizon Wireless, a joint venture of Verizon Communications and
Vodafone Group Plc, had warned the FCC that giving the airwaves
to Nextel in exchange for money could violate criminal laws. The General Accounting Office, the investigative arm of Congress, also plans to look into the legalities of the swap.
Public safety organizations have beseeched regulators to address interference with their communications during critical moments by commercial wireless services like Nextel.
