FCC, Nextel Get Signals Straight

Nextel Communications Inc. has agreed to a plan by federal regulators aimed at ending the interference from Nextel cell phones that disrupts public safety communication systems in hundreds of communities, The Associated Press has learned.

The Federal Communications Commission proposed giving Reston, Va.-based Nextel a new piece of broadcast spectrum in return for it vacating other spectrum and paying to reconfigure the airwaves it currently occupies.

Two sources close to the negotiations said Nextel has agreed to a deal. The sources requested anonymity and declined to give details ahead of a planned news conference Monday by FCC Chairman Michael Powell and Nextel officials.

FCC officials declined to comment.

Radios used by police, firefighters and other first responders now broadcast on the same 800-megahertz spectrum as Nextel cell phones. So, for example, if a radio dispatch is made at 850 MHz near a Nextel cell tower broadcasting at 851 MHz, the radio signal can be drowned out.

There have been no reports that interference caused injuries or deaths, though public safety officials have said personnel are endangered any time they respond to a call and cannot communicate.

The FCC last July approved a plan that would require Nextel to give up spectrum in the 800 band in exchange for new valuable spectrum in the 1.9-gigahertz range, where other major wireless carriers operate.

The commission had valued the spectrum being returned at about $1.6 billion, but Nextel contended it was worth more. The FCC reworked the deal in December to increase the spectrum's value to $2 billion, which would be credited toward the price Nextel would pay for the new spectrum it would receive.

Nextel also offered to pay about $1.3 billion for relocating public safety groups and clearing its new airwaves. That would also be deducted from the price for the new spectrum. In the end, the company could end up paying the government $1 billion to $1.5 billion.

Nextel rival Verizon Wireless had protested the FCC plan, saying it amounts to a taxpayer giveaway to Nextel. Verizon wants the 1.9-GHz spectrum to be publicly auctioned. Verizon has said it would be willing to pay $5 billion.

By Genaro C. Armas