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Technology Stocks : NEXTEL

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To: Rono who wrote (10219)9/9/2004 8:10:42 AM
From: Rono  Read Replies (1) of 10227
 
US FCC urges Congress to back Nextel airwaves swap
Wed Sep 8, 2004 06:30 PM ET
By Jeremy Pelofsky

WASHINGTON, Sept 8 (Reuters) - Congress should pass a law approving a swap of wireless airwaves with Nextel Communications Inc. designed to cut interference with public safety communications so it is not delayed by litigation, the top communications regulator said on Wednesday.

The Federal Communications Commission in July approved a three-year, multibillion-dollar plan for Nextel (NXTL.O: Quote, Profile, Research) to move operations to new airwaves it wanted while reorganizing police, fire and rescue communications in the 800 megahertz (Mhz) band.

Nextel, which has not yet agreed to the plan, would likely have to pay about $3.2 billion for the swap. However, some of its competitors have indicated they would challenge the FCC's decision in court, which can take months or possibly years.

"Given the uncertainty and drag of litigation by private companies, I would actually ask the Congress to consider codifying our action and put those issues to rest and allow public safety to move forward," FCC Chairman Michael Powell told the Senate Commerce Committee.

He later told reporters that Congress could easily solve lingering questions about whether the FCC acted properly when it approved the deal by passing a law backing the decision.

"If we care enough about public safety and interference issues, then just fix it," Powell said. "Because otherwise even if we win (in court), and I still remain confident that we will, I don't want to go through our classic six to eight months of litigation."

A Nextel spokeswoman had no immediate comment.

Congress is already considering other legislation that would require some television broadcasters to turn over to public safety groups certain airwaves in the 700 Mhz band by 2007 as the broadcasters move to digital signals.

Current law only requires the broadcasters to return those airwaves when 85 percent of the American public can receive digital signals, or by the end of 2006, whichever comes later. Few expect that 2006 deadline to be met and the FCC is contemplating setting a hard transition date of 2009.

The commission that investigated the 2001 attacks on New York and Washington urged Congress to support legislation that would speed the 700 Mhz airwaves to public safety groups to avoid the problems that were experienced during the attacks.

The panel determined that the inability of various agencies to communicate on Sept. 11, 2001, was a critical problem.

"Our first priority is the 9/11 Commission recommendation regarding the 700 megahertz spectrum," Senate Commerce Committee Chairman John McCain said through a spokesman. "That said, I respect Chairman Powell's opinions and recommendations and am not opposed to consideration of the FCC's recent 800 Mhz decision."
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