Cingular Opposes Nextel on Regulation Costs

[Barry]

Cingular has urged U.S. communications regulators to reject a request by rival Nextel to lower the cost of its plan to swap airwaves with the government, which is aimed at reducing interference with public safety communications.
The FCC in July approved a plan for Nextel to swap some of its airwaves for new spectrum, reorganize public safety communications and pay any difference in value of the swapped airwaves, a deal that could carry a $3.2 billion price tag.


Nextel, the No. 5 U.S. wireless company, argued that the FCC undervalued some of the spectrum it would return by $452 million because it covered more areas of the country than was considered in the agency's calculations.

The carrier also sought credit for the costs it would incur for deploying additional equipment to new sites so it can maintain network capacity during the reorganization. Depending on the FCC's decision, Nextel may accept or reject the plan.


Cingular, the biggest U.S. wireless company, said Nextel previously had a chance to show the FCC its coverage area data, and therefore the request should be denied. Cingular said in a filing made Thursday with the FCC. Additionally, Cingular said the agency had not intended to credit Nextel for deploying the additional equipment it said would be needed. The FCC approved the swap plan to try to resolve interference by wireless companies' services with communications by police, fire and rescue organizations. Any major changes would likely have to be voted on by the five FCC commissioners.

What are your thoughts? Should Nextel be funded by tax payer dollars?

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