|
-- FCC Accepts Major Pieces of Nextel Proposal, (July 8, 2004) -- Today the FCC unanimously approved a two-part plan to resolve the ongoing and growing problem of interference to public safety radio systems operating in the 800 MHz band, essentially accepting Nextel's original proposal for the long-term, but adding what the Commission called "enhanced best practices" for the short-term. The Commission said it based the decision on three essential goals: resolving the interference problem to public safety radio systems, ensuring equitable treatment of all affected licensees with minimal disruption to users and the public alike, and exercising sound principles of spectrum management. Despite Nextel's original plan, and all the subsequently submitted proposals, the FCC laid claim to its solution. "Based on the extensive record developed regarding the public safety interference problem, the Commission concluded that the most effective solution is a Commission-derived plan." The full text of the Report & Order has not yet been released. However, in a press release, the FCC said it implemented objective technical standards, or "Enhanced Best Practices" for defining 'unacceptable interference" to public safety systems operating in the 800 MHz band, and procedures detailing the responsibilities and expectations regarding abatement of such interference. It noted the similar Best Practices drawn up by public safety and commercial radio users back in 2000, but determined that, "reliance on these voluntary measures alone was insufficient and thus initiated a rulemaking proceeding to develop the effective solution it adopted today." But even Enhanced Best Practices aren't sufficient, the FCC said, "because the transactional costs of applying Enhanced Best Practices will continue to increase as new public safety and other non-cellular systems come on line and the commercial carriers using cellular-architecture increase the capacity of their systems by adding more cells." The commission believes these costs will disproportionately affect public safety agencies, "which operate with extremely limited resources." As for the hotly-debated issue of spectrum for Nextel, the FCC will require the company to give up right to certain 800 MHz frequencies, and all of its assigned 700 MHz frequencies. In exchange, the commission said it will modify Nextel’s licenses to provide the right to operate on two 5-MHz blocks in a different part of the spectrum (1910–1915 MHz and 1990-1995 MHz), "conditioned on Nextel fulfilling certain obligations specified in the Commission’s decision." Perhaps most important to critics, "The Commission determined that the overall value of the 1.9 GHz spectrum rights is $4.8 billion, less the cost of relocating incumbent users," and crediting Nextel for the value of the spectrum rights that Nextel will relinquish, and the actual costs Nextel incurs for to relocate incumbents in the 800 MHz band. The FCC explained, "To the extent that these combined credits total less than the determined value of the 1.9 GHz spectrum rights, Nextel will make an anti-windfall payment to the United States Department of the Treasury at the conclusion of the relocation process equal to the difference." The FCC's plan would result in an additional 4.5 MHz of 800 MHz-band spectrum being available to public safety users. The FCC will require Nextel to establish escrow accounts and a letter of credit in the amount of $2.5 billion to ensure adequate funding of relocation costs for other 800 MHz incumbents, and to fund the transition of incumbent users in the 1.9 GHz to comparable facilities. Lastly, the FCC said it would appoint a "Transition Administrator" for the plan, "to oversee the administrative and financial aspects of the band reconfiguration, provide accountability to the reconfiguration process, and ensure that band reconfiguration is achieved with minimal disruption to licensees, particularly public safety entities." The Commission recognized that, while it is essential to act promptly in light of the vital public safety interest served by this decision, the parties have raised novel issues regarding appropriations law, and the U.S. Comptroller General has agreed to review those issues. The Commission stated that, should the Comptroller General unambiguously conclude that the Commission's plan violates the appropriations statutes, the Commission will address – either on its own motion or on that of moving parties – whether it is appropriate to stay the effect of some aspects of the plan pending a final decision by the Court of Appeals on any application for review. Check our 800 MHz transition Web page for more links and the FCC commissioners' statements on the decision. Download the FCC press release (pdf) on their decision. Read press releases by Verizon Wireless, First Response Coalition The FCC has a very few historical documents on this Web page. |
