CTIA Conference Notebook...

A rebanding plan to mitigate public safety interference at 800 MHz would still be a “fair value proposition” if blocks at 700 and 900 MHz weren’t part of a spectrum exchange, said Nextel Senior Vp-Chief Regulatory Officer Bob Foosaner at a media and analyst briefing Sun. The FCC recently began considering a draft staff proposal on how to correct public safety interference at 800 MHz (CD March 11 p1). Under this draft, Nextel would pay for incumbent retuning at 800 MHz and the company would pay the difference between that and the value of 10 MHz at 1.9 GHz. But spectrum at 700 and 900 MHz that was part of a swap under the “consensus plan” backed by Nextel, public safety organizations and others wouldn’t be included in a proposed exchange. Asked whether Nextel would find favor with a plan that didn’t cover 700 and 900 MHz as part of a swap, Foosaner said: “We will have to understand what is acceptable to Nextel as we fully understand what the thought processes are at the Commission. We have always indicated we are willing to talk about various parts of the proposal.” Foosaner said any plan must eliminate interference and give Nextel 10 MHz at 1.9 GHz. While he said opponents to the consensus plan have successfully focused attention on valuing this spectrum at 1.9 GHz, Foosaner reiterated Nextel’s concerns that valuations floated by Cingular, Verizon Wireless and others were too high. Nextel has said it would contribute $5.3 billion in retuning and other expenses under the consensus plan, while the spectrum at 1.9 GHz is worth $3.5 billion. Verizon Wireless has charged Nextel would receive a spectrum “windfall” under the plan, with the 10 MHz at 1.9 GHz worth $5.3 billion. Foosaner said Verizon Wireless figures didn’t take into account the extent to which this 10 MHz at 1.9 GHz is occupied by Broadcast Auxiliary Service licensees, or the retuning costs that reduce the market value of this spectrum. “Did they look at the spectrum?” he asked: “The spectrum is occupied.” Also at the briefing, Nextel CEO Tim Donahue said the company plans to spend $600 million this year on network expansion. He also was bullish on the continued growth prospects for Nextel’s push-to-talk walkie-talkie type service, despite similar offerings that rivals are beginning to market. “Our ability to sell push-to-talk has never been stronger,” he said. Push-to-talk products such as those offered by Verizon Wireless appear to have simply refocused attention on Nextel’s plans, Donahue said, calling Verizon’s walkie-talkie version “not much of a product.” The proposed merger of AT&T Wireless and Cingular has a likely upside for Nextel, Donahue said. “We think it’s going to give some opportunity to us, because during times of mergers you typically have distraction; so it’s an opportunity for us to go and talk to AT&T and Cingular customers,” he said. -- MG