[TrunkCom] Re: 800 MHz

[Tom Swisher]

 From Mobile Radio Technology; looks like the rebanding will continue in 
spite of (or perhaps as part of) the Sprint/Nextel merger.

> ---------------
> 
> MRT Bulletin
> 
> Once again, Motorola appears to land on its feet
> By Donny Jackson
> December 23, 2004
> 
> As speculation of a Sprint-Nextel merger ran rampant a
> little more than a week ago, the notion of the merged
> carrier embarking on the construction of a CDMA EV-DO
> network was supposed to be bad news for Motorola.
> 
> Among analysts, the consensus was that the merger
> would bring an end to Motorola's exclusive supplier
> relationship with Nextel, which was assumed to be
> ditching its iDEN network for the CDMA upgrade.
> 
> The argument made perfect sense -- except that it
> turned out to be wrong.
> 
> Instead of trying to move Nextel customers onto a CDMA
> network to the detriment of enterprise customers'
> beloved push-to-talk service, the merged company plans
> to maintain both networks while building the EV-DO
> platform. In fact, Motorola was inked to a three-year
> extension to expand and enhance the iDEN network.
> 
> Better yet, Motorola will be asked to build dual-mode
> phones that will work on the CDMA network at 1.9 GHz
> and on the iDEN network at 800 MHz. This might have
> happened anyway with Nextel as a standalone company,
> but now Motorola will get to manufacture more than
> twice as many of the handsets, which should boost its
> bottom line while also letting the phones be more
> affordable.
> 
> It's not the first time Motorola has made lemonade out
> of alleged lemons. Four years ago, a struggling Nextel
> was contemplating an expensive switch to CDMA when
> Motorola officials convinced the carrier to stick with
> its iDEN technology -- a decision that helped generate
> the kind of profits and subscriber growth that made
> this week's merger announcement possible.
> 
> Meanwhile, the notion of integrating disparate
> networks via the handset will be watched closely. If
> Sprint, Nextel and Motorola are able to make this work
> economically, the precedent could impact thinking
> throughout the wireless industry -- not only on the
> commercial side, but also for public safety, which is
> seeking interoperable solutions.
> 
> --
> 
> In the news
> 
> FCC increases value of Nextel spectrum in 800 MHz swap
> By Donny Jackson
> 
> As expected, the FCC yesterday released an amended 800
> MHz order that reduces by $452 million the minimum
> amount of money Nextel would pay to reband the
> airwaves to alleviate interference to public-safety
> systems.
> 
> Under the original order -- approved in July and
> released in August -- Nextel was given a credit of
> $1.6 billion for its spectrum contribution in the 700
> MHz and 800 MHz bands. However, Nextel claimed the FCC
> erred in its calculations and undervalued its
> spectrum, in part by failing to recognize that the
> wireless carrier's nationwide airwaves serve 286
> million points of presence instead of the 234 million
> cited in the agency's calculation.
> 
> Initially applying the FCC's formula to estimates of
> its license holdings, Nextel determined that the
> corrected valuation would have increased the spectrum
> credit by $740 million. However, Nextel's more
> detailed study of its actual license holdings
> reflected that the corrected value should increase by
> $452 million -- the figure adopted by the FCC.
> 
> "This current order used the same formula but uses a
> much more granular set of data," FCC Wireless
> Telecommunications Bureau Chief John Muleta said in a
> press conference today. "I think this reflects a much
> higher level of precision."
> 
> As a result, the minimum amount of cash Nextel would
> pay in the rebanding proceeding is $2.8 billion. If
> the rebanding process costs less than that amount, the
> difference would be deposited in the U.S. Treasury. If
> rebanding costs exceed the $2.8 billion amount, Nextel
> would be required to pay the difference.
> 
> Muleta said the order also clarified that Nextel would
> be credited for any capital costs it incurs that are
> attributable to the rebanding process. Other aspects
> of the 800 MHz order that were altered or clarified
> included details regarding Nextel's $2.5 billion
> letter of credit, its payment procedures and a
> decision not to enforce more stringent interference
> criteria during the rebanding process.
> 
> FCC commissioners approved the changes by a 4-0 vote,
> with Commissioner Michael Copps concurring while
> expressing concern with the manner in which the
> spectrum valuation was calculated.
> 
> Nextel said it was "gratified" that the FCC took the
> action and said it is reviewing the 68-page amendment
> to the order.
> 
> "The detailed supplemental order addresses numerous
> issues, and Nextel will need to carefully study it, so
> we can fully understand the commission's decision,"
> Nextel spokesman Tim O'Regan said in a statement.
> "This is an important step in moving the 800 MHz
> proceeding forward."
> 
> Nextel must decide by Feb. 7 whether to accept the
> terms of the FCC order.
> 
> Analysts believe there is little doubt that Nextel
> will agree to the order, which would grant Nextel
> contiguous spectrum in the 800 MHz and 1.9 GHz band.
> Nextel needs the contiguous spectrum to offer advanced
> wireless services, and most industry observers believe
> Nextel's recently announced merger plans with Sprint
> are contingent upon Nextel receiving these blocks of spectrum.


-- 
Tom WA8PYR
--
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Tom Swisher, WA8PYR         wa8pyr-scan at sbcglobal.net
  "Restriction of free thought and free speech is the
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   un-American act that could most easily defeat us."
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