FYI
Nextel sues U.S. court to overturn 900 Mhz limits
MCLEAN, Va, Feb 17 (Reuters) - Wireless telephone carrier Nextel Communications Inc. (Nasdaq:NXTL - news) sued a U.S. court on Wednesday in an effort to overturn limits on the amount of 900 Megahertz spectrum the company can use in its business.
The lawsuit, entered in the U.S. District Court for the District of Columbia, followed a court approval on Tuesday of Nextel's proposed purchase of the 900 MHz licenses of Geotek Communications Inc.
In Wednesday's suit, Nextel said the Department of Justice has failed to recognize changes in the wireless industry since a 1995 consent decree that limits the amount of megahertz Nextel can use to serve its wireless customers. The spectrum is used for such services as paging.
Nextel said reduced competition has been the result of the decree, which was imposed by the DOJ following concerns that acquisitions by Nextel in the traditional analog dispatch services would give the company a monopoly in the technology.
''There is no sound antitrust rationale for limiting Nextel's ability to compete in the advanced wireless industry,'' said Dan Akerson, chief executive of Nextel.
''The mere fact that Nextel had its roots in the analog dispatch business does not provide a sound policy basis for treating Nextel differently from the cellular and PCS carriers with whom we must compete,'' he added.
Nextel said that among the major domestic wireless telephone competitors, including AT&T and Sprint, it is the only company with restrictions.
--------------------------------------------------------------------------------
More Quotes and News: Nextel Communications Inc (Nasdaq:NXTL - news) |
