AT&T Wireless and VoiceStream Wireless Corp allowed to use NextWave spectrum under " special temporary authority."
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Sept. 11 Attacks Gave NextWave Airwaves Trial Run
By Jeremy Pelofsky
WASHINGTON (Reuters) - Valuable airwaves tied up for five years in a legal tussle involving mobile phone companies and federal regulators have not lain completely idle, it was revealed this week.
Days after the Sept. 11 attacks, some of the coveted frequencies held by bankrupt NextWave Telecom Inc. (NXLC.PK) were allocated to competitors in a scramble to boost New York capacity after the World Trade Center's twin towers collapsed.
NextWave won licenses to offer wireless service in dozens of U.S. markets in 1996 but ran out of money and went into bankruptcy protection in 1998 without launching service. The government has been in court trying to reclaim the licenses, and even trying to resell them to rival carriers.
``The Federal Communications Commission (news - web sites) issued special temporary authority to companies operating in New York City to deal with the crisis, that authority was to use these very NextWave licenses that have been encumbered for so many years,'' FCC (news - web sites) Chairman Michael Powell said Tuesday on Capitol Hill.
With networks overwhelmed and equipment destroyed, mobile telephone companies brought in mobile antennas called ``Cells on Wheels'' but they needed more airwaves to connect the calls.
Hours into the crisis on Sept. 11, David Jatlow, a lawyer for AT&T Wireless Services Inc. (NYSE:AWE - news), called NextWave deputy general counsel Michael Wack seeking permission to use 10 megahertz of the 30 megahertz of spectrum NextWave has to expand coverage for rescue workers in the destruction zone.
``We were scrambling and getting every single phone we had available and distributing them to law enforcement, to rescue operations, to the Red Cross, and anyone and everybody who needed it,'' said AT&T spokeswoman Alexa Graf. ``It's one thing to put phones in and give equipment to these rescue workers, but at the same time you need them to work.''
She said AT&T alone saw an 800 percent increase in call volumes in New York City as the company lost a handful of antennas necessary to connect calls when the towers collapsed.
NextWave's Wack said that after receiving the call from AT&T, he checked with his engineers to ensure that there would not be any interference problems. ``We worked hard to make sure it could be accomplished in a couple hours and we were obviously happy to do that,'' he said.
``Everyone understood that the legal issues needed to be put aside to work together to make sure that emergency operations were fully supported,'' Wack said. VoiceStream Wireless Corp. (DTEGn.DE) soon followed with its own request to borrow a second 10 megahertz slice.
The Federal Communications Commission, which regulates the telecommunications industry, approved special temporary authority for AT&T to use the airwaves through Nov. 27 and for VoiceStream through Oct. 12.
``When the disaster happened, we had so many calls on our network,'' said Brian O'Connor, vice president for legislative and regulatory affairs at VoiceStream. ``There wasn't a moment's hesitation. As soon as I asked, they agreed.''
Airwaves for mobile telephone services are a scarce resource and therefore expensive, especially in New York City.
When the government tried to resell NextWave's licenses earlier this year, companies bid as much as $2.2 billion for 10 megahertz slices covering New York City. AT&T's partner Alaska Native Wireless won one of those licenses with a bid of $1.5 billion.
And, Alaska Native may get that license eventually because NextWave, the FCC and mobile telephone companies have reached a settlement over the disputed airwaves which is now awaiting approval by Congress.
After the attacks, the mobile telephone companies and NextWave negotiated a settlement in which NextWave will give up airwaves covering dozens of markets, including New York, in exchange for $5.85 billion.
The government would receive $10 billion, all funded by the mobile telephone companies who bid on the NextWave licenses last January. |
