Why the FCC Will Side with Nextel

The Federal Communications Commission is expected to rule next week on a solution to the interference problems that plague the 800 MHz spectrum band and wreak havoc with public-safety communications nationwide (see story). Despite the efforts of Verizon Wireless and other wireless carriers that compete with Nextel Communications, the FCC almost certainly will approve something similar to the framework of the approach proposed by Nextel and most public safety groups: the so-called Consensus Plan.

Nextel, or more accurately its interleaved 800 MHz spectrum, is the root cause of the problem. To solve it, the carrier has proposed a radical rebanding of the 800-MHz spectrum. The end result is that both Nextel and public-safety licensees would receive contiguous blocks within the band, which is expected to mitigate interference issues in most cases. Nextel also would receive a 10 MHz block of spectrum at 1.9 GHz, which the carrier covets for the purpose of rolling out advanced services. Nextel has pledged $850 million to pay for the rebanding.

Opponents would prefer that interference be mitigated though engineering "best practices," a concept at the core of the rival Balanced Approach Plan favored by the Cellular Telecommunications & Internet Association and the United Telecom Council, which represents public utilities. Balanced Approach proponents believe most interference issues could be resolved within a 60-day window using techniques currently available to radio-frequency engineers, and like to point out that rebanding is expected to take roughly three years. (It should be noted, however, that major population centers are expected to be rebanded within a year after the FCC's order takes effect.) They also believe rebanding actually will cost more than $2 billion, far more than the $850 million suggested by Nextel, and wonder who will make up the difference.

Consensus Plan opponents, led by Verizon Wireless, further argue that the spectrum Nextel would hold after the plan takes effect would be worth far more than the spectrum it currently holds. Moreover, there is some question as to whether the FCC can even award the 1.9 GHz spectrum, as telecom law generally prescribes that spectrum be auctioned. FCC Chairman Michael Powell has stated that he believes the agency has the legal right to award the spectrum, a position that will be challenged in court--probably before the ink is dry on the order. However, multiple sources have predicted that the FCC will compel Nextel to pay far more than the $850 million it has pledged in an attempt to replicate the market value of the 1.9 GHz spectrum if it were auctioned; estimates range from $1.5 billion to $7 billion.

In the end, none of the arguments against the Consensus Plan are going to matter to the FCC, because the nation's largest public safety entities are united behind the Consensus Plan. The Association of Public-Safety Communications Officials, International Association of Chiefs of Police, International Association of Fire Chiefs and National Sheriff's Association are very concerned--for good reason--that a first responder or a citizen will lose his or her life as the direct result of radio failure stemming from 800-MHz interference. They are convinced the only viable, proactive solution available right now is rebanding. As Charles Werner, deputy chief of the Charlottesville, Va., fire department and an IAFC member, recently told me, "We've heard a lot about 'silver bullets,' but we don't think they exist. The only way [to solve interference] is to put more of the licensees closer to 700 MHz. Anything else is a shot in the dark."

Public safety carries a very big stick with lawmakers--for good reason. Recall that the FCC reports to the U.S. Congress. The last thing the FCC commissioners are going to want is to be dragged before some congressional committee to justify why they went against public safety's wishes and opted for something other than the Consensus Plan, or delayed the decision further. First responders--as represented by APCO, IACP, IAFC and NSA--want the Consensus Plan, and they want it now. They're going to get it, even if it means Nextel walks away with a windfall it doesn't deserve.

Glenn Bischoff is editor of Mobile Radio Technology, another Primedia Business Magazines & Media publication. E-mail him at gbischoff@primediabusiness.com