WSJ -- FCC's Powell Sees Decision On Nextel by End of May.
May 13, 2004 12:57 p.m
FCC's Powell Sees Decision On Nextel by End of May
By MARK WIGFIELD
DOW JONES NEWSWIRES
WASHINGTON -- Federal Communications Commission Chairman Michael Powell said Thursday he hopes the agency can make a decision regarding wireless provider Nextel Communications Inc.'s controversial spectrum swap by the end of May.
The decision by the agency's five commissioners "will be sooner rather than later," Mr. Powell told reporters following the FCC's monthly meeting. But when asked if the agency will make a decision by the end of the month, he said, "I'm going to shoot for that."
"We are working to really start to bring this to a close," he said. "We are still pretty confident we're making progress."
The FCC is reviewing Nextel's plan to resolve complaints that its wireless service interferes with public safety radios in the 800 megahertz band. The company has offered to pay $850 million to move public safety operations to one part of the band and give up some of its spectrum, in return for additional spectrum in the 1.9 gigahertz band.
But the rest of the wireless industry has been fiercely resisted the proposal as a windfall for Nextel, of Reston, Va. The industry is pushing for Nextel to receive spectrum in the less-valuable 2.1 GHz band, a plan Nextel says is unacceptable.
The issue has pitted Nextel against the nation's largest wireless provider, Verizon Wireless, a partnership between Vodafone Group PLC and Verizon Communications Inc. Verizon has promised a court challenge if Nextel is granted spectrum in the 1.9 GHz band, while Nextel has threatened to walk away from the deal if the FCC substitutes the 2.1 GHz spectrum.
Mr. Powell indicated that the public positions of both sides have belied some of the progress being made on the issue in private talks with the parties at the FCC.
He said there "is a whole lot going on at the table that I can't share with you, but I will say that we are working to really start working to bring this to a close."
Both the 1.9 GHz and 2.1 GHz proposals "have been worth combing through with a fine-tooth comb," Mr. Powell said. Asked what the commission will do if the FCC chooses the 2.1 GHz option and Nextel walks away, Mr. Powell said "we're not there yet."
The agency is still discussing how the spectrum should be valued in either of the proposals, he said.
"Whatever we do is going to be the thing that best takes care of the problems affecting public safety, no matter what option that is, and no matter what risk that presents," Mr. Powell said. "We will exhaust every possible option to find what we think is the best of what we've seen."
Write to Mark Wigfield at mark.wigfield@dowjones.com
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