The 800 MHz battle got hot again this week, as Verizon Wireless accused Nextel Communications of negotiating the value of Nextel’s spectrum behind closed doors at the FCC.
Verizon Wireless sent a blistering letter to the FCC charging that the FCC is illegally negotiating with Nextel Communications Inc. regarding a key portion of the FCC s plan to solve public-safety interference in the 800 MHz band.
We filed the attached letter with the FCC yesterday to expose, and demand a halt to, the private negotiations Nextel is engaged in at the FCC to cut its cost for getting the G-block spectrum, said Jeffrey Nelson, Verizon Wireless executive director of communications.
The G-block is the highly contested spectrum in the 1.9 GHz band that Nextel receives as part of the FCC s plan. FCC Wireless Telecommunications Bureau Chief John Muleta said a $3.2 billion minimum payment from Nextel reflects the commission’s $4.8 billion valuation of the 1.9 GHz airwaves minus the approximately $1.6 billion value given to Nextel’s 700 MHz and 800 MHz spectrum contributions.
The FCC’s proposed Consensus Plan is designed to eliminate interference in the public service band. Nextel would also cover the costs of relocation (“rebanding”) of public service users as well as its millions of current subscribers.
Derek Kerton of TechDirt points out:
Verizon should probably not call too much attention to itself, or people might start asking questions about how the “First Responders Coalition (FRC)” gets its funding. This is the coalition that is now lobbying hard against the FCC Swap plan under the guise of representing Emergency Workers, but is surprisingly poorly stocked with members from the emergency services community.
Under the order, public safety will not have to pay any costs associated with rebanding. In addition, public safety would receive 4.5 MHz of additional 800 MHz spectrum and 4 MHz of 700 MHz spectrum in the deal.
Some observers believe Verizon wants an auction simply to shut Nextel out of competition. Any spectrum auction would also require Nextel to move their frequencies. Verizon, unlike Sprint and Nextel, did not see fit to invest in MMDS (2.6GHz) spectrum. But, hey, Verizon could aways buy Craig McCaw out.
DailyWireless has more on The Consensus Plan, Security Planning & Communications and Consensus Plan From FCC?, Consensus Plan Near?, Freq Consensus?, Localizing Consensus Plans, Happy Town, Nextel’s Flarion Goes Live, Nextel’s Consensus Move and Nextel Gets 2.1 & 2.5 GHz.
