WASHINGTON-Nextel Communications Inc. is charging that private wireless receives a subsidy because it does not pay for its licenses. The enhanced specialized mobile radio operator made the remarks in reply comments filed at the Federal Communications Commission.
The FCC is establishing a record on what services should make use of 36 megahertz of spectrum made available as part of the transition to digital TV. The spectrum is located in the 746-764 MHz and 776-794 MHz bands, known as TV channels 60-69.
Nextel, which won most of the licenses in the upper 800 MHz band auction, said, “Licensees assigned spectrum free of charge have little incentive to implement cost-effective, spectrum-efficient technology … [The FCC should] assign this [spectrum] for any fixed, mobile or broadcast use to any eligible bidder.”
Nextel goes on to charge that “among the large corporations currently holding licenses obtained at the American taxpayer’s expense (and seeking to continue these subsidies) are Ford Motor Co. and the Boeing Co., which are ranked second and ninth on the 1999 Fortune 500, respectively … There is no reason that the `owner’ of those private spectrum allocations, i.e., the American public, should not be directly compensated for use of this resource just as the owner of every other resource used in the production of these for-profit goods and services is compensated by the private licensee.”
The Industrial Telecommunications Association does not believe Nextel’s idea will sell at the FCC. “Private wireless serves an important need in the marketplace … It is just not feasible to force these companies to bid at auction. It is just ridiculous,” said Laura Smith, ITA executive director of regulatory affairs.
The Personal Communications Industry Association agreed. “It is clearly a position that is out of step with the majority of the land mobile community, and we hope the FCC will see it the same way,” said Don Vasek, PCIA director of government relations.
Smith also pointed out Nextel’s arguments follow closely with the arguments made in a recent petition by the American Mobile Telecommunications Association. In that petition, AMTA reminded the FCC that purchasing licenses at auction would lead to more efficient spectrum use. The petition urged the FCC to auction large chunks of spectrum in the 450-470 MHz band. The 450 MHz band is used by companies for private internal communications. Most have developed their own systems, but some use commercially operated systems.
AMTA President Alan Shark said while there were similarities between AMTA’s and Nextel’s positions, “their strategic game plan has a much different outcome than the rest of the industry’s … We feel less certain, at the moment, that we can serve all of private wireless’ needs.”
The sentiment echoed a caveat found in AMTA’s reply comments, which said, “Some private users have legitimate reasons for maintaining their own, purely internal operations, irrespective of the availability of commercial options. Others have such specialized requirements that they are ill-suited to a commercial system.”
Additionally, in its reply comments, AMTA reiterated its belief this spectrum holds promise as a future home for small SMR operators hoping to serve private business. AMTA represents the operators of these systems. Many of AMTA’s members say access to additional spectrum is their most pressing concern.
