Neko
Supreme Overlord
Dec 13, 2003, 9:55 PM
Post #1 of 1
(1178 views)
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RESTON, Va. Nov. 21, 2003 - Nextel Communications Inc. (NASDAQ:NXTL) yesterday filed two studies written by well-established wireless industry experts with the Federal Communications Commission (FCC) supporting the Consensus Plan as the most comprehensive way to eliminate public safety interference. The Consensus Plan is consistent with the objectives of the FCC's Notice of Proposed Rulemaking (NPRM) and its Spectrum Policy Task Force Report. These studies also present more complete and relevant information for assessing the true cost and value of realigning the 800 MHz band. Nextel cited the two submissions as further evidence that the Consensus Plan is in the public interest, is the best solution to the public safety interference problem, and makes economic sense for the FCC and all affected parties.
A study by Kostas Liopiros, Founder and Principal of the Sun Fire Group, concludes that the Consensus Plan will produce substantial and continuous societal benefits and explains how these important public benefits far outweigh any theoretical cost to the federal government in terms of forgone spectrum auction benefits. Dr. Liopiros points to the government's responsibility, when making regulatory decisions, to consider whether the benefits of a proposed action outweigh its costs. Considering the reduction in crime and fire related costs that improved public safety communications will provide, Dr. Liopiros concludes that the Consensus Plan compensates American taxpayers to a far greater extent than a one-time government spectrum auction.
In addition to believing that the Consensus Plan is by far a net win for the government and public safety agencies, Dr. Liopiros said in his study, "Attempting to definitively estimate the relative values of the spectrum swaps necessary to effectuate the Consensus Plan, however, essentially misses the whole point of this rulemaking. The valuation arguments of Nextel's competitors are a trap intended to misdirect the Commission's focus from solving the very real and very urgent problems facing public safety communicators."
The studies which were filed yesterday put to rest the specious arguments put forth by Consensus Plan opponents who have ignored the public interest. Under the terms of the Consensus Plan, Nextel's contribution of spectrum and re-location expenses more than offsets the market value of 1.9 GHz spectrum and results in substantial benefits for public safety and the American public.
Lawrence R. Krevor, vice president of Government Affairs at Nextel Communications said, "Under the Consensus Plan, Nextel Communications is to surrender 10.5 MHz of spectrum and receive 10 MHz of compensating bandwidth at 1.9 GHz. These studies demonstrate that the Consensus Plan is equitable for all parties. Nextel is committed to the Consensus Plan because it solves the intolerable problem of interference to public safety systems from 800 MHz commercial operators."
The second study, by Dr. Gregory L. Rosston, former Deputy Economist at the FCC and currently Stanford University's Deputy Director of the Stanford Institute for Economic Policy Research, evaluates the Consensus Plan in light of the of FCC's 2002 Spectrum Policy Task Force Report. According to Dr. Rosston, the Consensus Plan is the proposal most consistent with the FCC's current spectrum management policies because it corrects 800 MHz public safety interference with a market-based approach.
Dr. Rosston's study shows that the Consensus Plan embodies the core guidance of the Report that spectrum design should be set up to maximize efficiency for all licensees. In contrast, alternative proposals do not provide a clear guide to rights and responsibilities of solving interference, do not correct the root cause of the interference problem, and do not provide a funding mechanism for implementation of their proposals. Contrary to the FCC's stated spectrum management goals, alternative approaches continue to commit the FCC to inefficient regulation of the 800 MHz band. In essence, Dr. Rosston demonstrates that the Consensus Plan is consistent with the FCC's objectives in this proceeding, while the alternate proposals are not.
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