In a Bizarre Decision, Company That Causes Interference to Police Communications is Rewarded Handsomely by the Federal Government

BEDMINSTER, N.J., July 8 /PRNewswire/ -- The Federal Communications Commission (FCC) today announced its preferred way to eliminate interference caused by Nextel to public safety communications: a spectrum give-away worth billions of dollars in lost revenue to the U.S. Treasury. Bypassing both Congress and the FCC's own spectrum auction process, and conferring a multi- billion dollar windfall on Nextel at taxpayer expense, Commissioners took the bizarre step of rewarding Nextel, which acknowledges that its operations cause interference to police, fire department and other public safety communications. Verizon Wireless issued the following statement:

"The FCC has failed to provide a lawful solution to the challenge presented by Nextel's interference with communications vital to the nation's first responders. Now Congress must step in to fix this mess. Only Congress has the Constitutional authority to spend taxpayer dollars. Instead of seeking a lawful appropriation from Congress to finance the work of untangling public safety's frequencies from Nextel's interference, the FCC has pushed ahead, while serious legal questions raised by senior Congressional leaders remain unanswered. Has the FCC financed this project illegally by bypassing both the Congress and the auction process? Is the award of billions of dollars worth of prime spectrum to a private commercial service provider prohibited by federal law?

"As the GAO investigates the legality of Nextel's spectrum windfall and Members of Congress continue to express deep concern about the loss of billions of dollars to the U.S. Treasury, taxpayers and first responders would have been far better served if the FCC had allowed the GAO and Congress to assess the legality of the Nextel spectrum grab before approving it."

About Verizon Wireless

Verizon Wireless is the nation's leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 40 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com . To receive broadcast-quality video footage of Verizon Wireless operations, log onto http://www.thenewsmarket.com/verizonwireless.

Coalition: FCC's Approval of Nextel Spectrum Grab Fails Firefighters, Police and Other Emergency First Responders

Politics Puts Nextel Agenda Ahead of Police, Firefighter Communication Needs; First Response Coalition is Growing, Adds New Members

WASHINGTON, July 8 /PRNewswire/ -- The firefighters, police officers and concerned groups comprising the First Response Coalition (http://www.FirstResponseCoalition.org) said today that the endorsement by the Federal Communications Commission (FCC) of the Nextel spectrum grab "places politics ahead of the police and firefighter communication crisis highlighted by 9/11." The Coalition called on Congress to overrule the FCC's ill-advised decision and dedicate funding for interoperability.

Gene Stilp, who is coordinator of the Coalition and a volunteer firefighter, EMT and vice president of the Dauphin-Middle Paxton Fire Company #1, in Dauphin, Pa., noted: This is a sad day for firefighters, police officers and other emergency personnel across America. Since 9/11 this Administration has failed to provide funding to solve interoperability problems. Today's decision by the Commission continues to ignore this critical need. They had a major opportunity here, but they ignored the needs of first responders in order to solve a political problem and to bailout Nextel. We call upon the courts and Congress to reverse the FCC's decision. We urge them to adopt the first response plan, which will help solve the interoperability problem and the Nextel interference problem."

Stilp added: "The $2.5 billion letter of credit from Nextel pales in comparison to the five to 10 billion dollars that would be raised from a legitimate auction of this spectrum. This money could have been earmarked to make the interoperability problems in American cities and towns a thing of the past. Now we have another list of promises, inadequate funding and additional years of delay. To anyone who understands how thinly stretched the budgets of fire, police, and other emergency responders are today, this 'plan' is an extremely poor action that fails the public. Unfortunately, it is the American public that will pay the price here if the courts and Congress do not intervene to overrule the FCC."

COALITION EXPANDS

Since its launch in June, the First Response Coalition has grown rapidly in recent weeks to include the National Black Police Officers, the American Legislative Exchange Council and the California Seniors Coalition. In addition to Stilp and William Fox, commissioner, Metropolitan Fire Association, New York City, the Coalition's original members include the Gray Panthers, and the Black Chamber of Commerce, and the American Corn Growers.

BACKGROUND ON THE COALITION PLAN

On June 24, 2004, the First Response Coalition held a news conference to oppose the Nextel spectrum grab and to release a white paper entitled "Safety Over Spectrum: A Plan for First Responder Communications." The Coalition white paper outlined an alternate approach that puts the primary emphasis not on Nextel's commercial agenda, but, instead, on smoothing the way for police and firefighters struggling to address post-September 11th demands to improve and coordinate emergency communications.

The Coalition's white paper stated: "Today, and (as was) unfortunately evident on September 11th, the communications systems of public safety departments are not interoperable. It is difficult, if not impossible, for different departments from different (or sometimes the same) jurisdictions to communicate because their systems and equipment cannot interact. Resolution of this crisis must be swift, or the danger to our first responders and all Americans will continue to skyrocket. As urgent and complicated as this problem is, the situation is exacerbated by the actions of Nextel Communications. Guised as an effort to help public safety departments eliminate interference problems in their communications systems, Nextel is waging a multi-million dollar campaign which is diverting attention and possible resources away from the real issue of communications interoperability."

As outlined late last month, the First Response Plan calls for:

• Holding Nextel responsible for all instances of interference it causes and ensuring the company works with local public safety departments to resolve the problems.
• Auctioning spectrum in the 1.9 GHz band and earmarking the proceeds for upgrading first responder communications systems.
• Developing an accelerated regional deployment schedule to ensure that public safety communications systems are upgraded by 2006.
• Providing low-interest loans and guarantees to assist underserved and economically-disadvantaged communities in obtaining the newest communications technologies.
• Establishing advisory panels to recommend solutions that adequately address the disparate needs of America's diverse communities.

ABOUT THE COALITION

The First Response Coalition (http://www.FirstResponseCoalition.org) consists of citizens, individual first responders, and advocacy groups who are particularly concerned about first responders having the best possible communications capabilities. The First Response Coalition believes interoperability issues must be addressed by the FCC in any plan that reorganizes spectrum and will disrupt public safety communications systems across the country.

The First Response Coalition believes that adequate funding for improving public safety communication systems is the highest priority. It believes that a common-sense solution is for Congress to require an auction for the frequencies at 1.9 GHz, which the FCC is giving away for free, and to then dedicate that money for public safety improvements. The First Response Coalition recognizes that low income, rural, and underserved communities lack the resources to upgrade their technology. It supports an accelerated regional deployment schedule to ensure that all public safety communications systems are interoperable by 2006, and that low-interest loans and loan guarantees are made available to assist underserved and economically-disadvantaged communities in obtaining the newest communications technologies.

International Association of Fire Chiefs (IAFC)

FCC adopts Consensus Plan \ Plan will eliminate public safety radio interference in the 800 MHz band

Fairfax, Va., July 8, 2004 -- Today, the Federal Communications Commission (FCC) adopted a plan to resolve the ongoing and growing problem of interference to public safety radio systems operating in the 800 MHz band. The new band plan for the 800 MHz band will address the root cause of the interference problem by separating generally incompatible technologies. The costs of relocating 800 MHz incumbents are to be paid by Nextel Communications, Inc.

To accomplish the reconfiguration, the Commission will require Nextel to give up rights to certain of its licenses in the 800 MHz band and all of its licenses in the 700 MHz band. In exchange, the Commission will modify Nextel’s licenses to provide the right to operate on two five-MHz blocks in a different part of the spectrum – specifically 1910-1915 MHz and 1990-1995 MHz – conditioned on Nextel fulfilling certain obligations specified in the Commission’s decision.

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. In addition, the Commission concluded that it would credit to Nextel the value of the spectrum rights that Nextel will relinquish and the actual costs Nextel incurs to relocate all incumbents in the 800 MHz band. 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 U.S. Dept. of Treasury at the conclusion of the relocation process equal to the difference.

"For more than five years, public safety professionals have been struggling with unreliable and unclear communications, which has jeopardized lives and the citizens they protect. We applaud the FCC for its leadership and decision in support of the public safety community. We are grateful to FCC Chairman Powell and the Commissioners for their careful consideration in this important proceeding," said Chief Ernest Mitchell, president of the International Association of Fire Chiefs.

"The IAFC looks forward to working with the FCC and the wireless industry to implement this critical plan immediately. We understand the FCC has asked Nextel to go beyond their original pledge of spectrum exchange and supplemental financial compensation," Mitchell said, "We don’t know what Nextel is planning to do, it’s up to them to accept the plan."

The Consensus Plan was the solution recommended by public safety organizations like the International Association of Fire Chiefs (IAFC), the International Association of Chiefs of Police (IACP), the National Sheriff’s Association (NSA) and the Association of Public-Safety Communications Officials (APCO).

FCC 800 MHz Decision Falls Short

July 8, 2004

WASHINGTON, DC – Steve Largent, President and CEO of CTIA – The Wireless Association, called the Federal Communication Commission’s (FCC) decision today in the Nextel/800 MHz proceeding "disappointing." CTIA has argued repeatedly that the 800 MHz interference problem must be solved quickly, fairly, to the benefit of Public Safety, and in a way that will survive judicial scrutiny. Largent believes the FCC's decision fails on all counts.

"The FCC clearly didn't keep its eye on the ball. Its primary responsibility in this case is to look out for Public Safety and the American public and that didn't happen," observed Largent."It is unfortunate that the Commission’s plan does less to solve the Public Safety interference problem than other alternatives that were available. Among all of the FCC’s choices, this one provides Public Safety with the fewest assurances of success."

He noted CTIA had filed an alternative, the Compromise Plan, with the FCC on April 29th that focused on securing additional funding for Public Safety, provided significant incentives for Nextel to focus on solving the interference to Public Safety’s satisfaction, and set strict timelines for completion of rebanding. The Compromise Plan also proposed to provide Nextel with the 2.1 GHz spectrum that it had requested as part of its original proposal.

Largent emphasized that the FCC's decision to grant Nextel an upfront, nationwide 10 MHz spectrum license in the heart of the 1.9 GHz band, in exchange for Nextel's "contributions" worth much less than this spectrum, does a disservice to the American public and to the competitive wireless industry. "Giving up such valuable spectrum without a public auction means the U.S. Treasury is losing billions of dollars. Those funds could’ve been used to provide Public Safety with money to make much-needed improvements in the vital care it provides all of us," said Largent.

FOR IMMEDIATE RELEASE

Contact: Courtney McCarron

APCO SEEKS CONGRESSIONAL SUPPORT IN DTV TRANSITION

May 27, 2004, Washington, DC - The Association of Public-Safety Communications Officials (APCO) International sent a letter today to Rep. Fred Upton (R-Mich) seeking congressional assistance in the DTV transition. The House Committee on Energy and Commerce Subcommittee on Telecommunications and the Internet, chaired by Upton, will hold a hearing on "Advancing the DTV Transition: An Examination of the FCC Media Bureau Proposal" on June 2.

As required by Congress in 1997, the Federal Communications Commission (FCC) has reallocated 24 MHz of spectrum for public safety radio services at 764-776/794-806 MHz, which is now used for TV stations 63, 64, 68, and 69. Ongoing television operations on those and adjacent channels block use of the new public safety spectrum in much of the nation and current law allows those stations to remain on the air until December 31, 2006, or when 85 percent of households have access to DTV signals.

"These systems are needed today, not at some distant undefined date," the APCO International letter stated. "Public safety agencies need access to the reallocated spectrum to provide critical capacity for new and expanded wide-area, multi-agency radio systems."

The uncertainty as to when TV stations will give back their analog channels makes it difficult for state and local governments to plan or fund new radio systems on the reallocated public safety spectrum. These systems will include dedicated interoperability channels, and will be interoperable with the adjacent 800 MHz spectrum that is already heavily used by public safety agencies across the country. The new spectrum will also alleviate dangerous congestion on current public safety channels, and will facilitate deployment of state-of-the-art communications technologies for our nations' first responders.

"APCO and many others continue to urge Congress to require TV stations that block public safety allocations to relinquish their channels no later than December 31, 2006," the letter continued. "We also support the FCC Media Bureau recommendation that the Commission change its 'must-carry' rules to ensure that the 85 percent threshold is met as of January 1, 2009, though we suggest an earlier date for channels 60-69. The Media Bureau's proposal would be a major step forward, assuming that it provides state and local governments with sufficient certainty to begin the planning, funding, and construction process upon adoption of the rule change."

Download full text of the letter (pdf)