WASHINGTON-Verizon Wireless and Nextel Communications Inc. have buried the hatchet.
The companies have agreed to drop their lawsuits against each other. The agreement includes a pledge by Verizon Wireless to stop protesting the Federal Communications Commission’s plan to solve public-safety interference in the 800 MHz band by retuning the band and giving Nextel the G-band as replacement spectrum, and Nextel said it will stop complaining about Verizon Wireless’ marketing of its walkie-talking service.
“The two companies are dismissing their pending lawsuits against each other and releasing each other from all other existing claims. Nextel also agreed to forgo any trademark and other ownership rights to the phrase “push to talk,” “PTT,” and all related “PUSH” names. Both parties retain the right to utilize those terms in connection with the marketing of their services. Verizon Wireless has agreed not to oppose the FCC’s decision to realign the 800 MHz band, including Nextel’s receipt of spectrum in the 1.9 GHz band,” reads a joint statement. “In the spirit of cooperation, Verizon Wireless and Nextel each have committed to work together, along with the Cellular Telecommunications & Internet Association, to protect customers from harmful regulation and unfair taxation.”
At present there are no legal documents available, and other terms of the settlement were not disclosed.
The settlement means the FCC can move forward with its 800 MHz plan without fear of a costly and time-consuming lawsuit from Verizon Wireless.
Verizon Wireless had claimed the FCC violated the Communications Act by saying it would modify Nextel’s 800 MHz licenses to include spectrum in the G-block. Before the FCC announced its 800 MHz plan in July, Verizon Wireless had said commissioners could be held individually liable for violating the Miscellaneous Receipts Act. The Government Accountability Office is preparing a legal document on the MRA implications of the FCC’s 800 MHz plan.
While the settlement clears away a major obstacle, there are other economic area 800 MHz licensees that have expressed frustration with the FCC’s 800 MHz plan. These carriers-either individually or collectively-could still take the plan to court.
In September, FCC Chairman Michael Powell urged Congress to codify the FCC’s 800 MHz plan to thwart any litigation, but Congress left town without considering the issue.
The wireless industry now awaits publication of the FCC’s plan in the Federal Register. Once the rules implementing the plan are published, the FCC will have 30 days to make changes-it has asked for comment on some clarifications requested by Nextel-and Nextel will have 30 days to say whether it will accept or reject the plan. If the FCC makes changes, the clock for Nextel will start over, but Tuesday’s action and statements by Timothy Donahue, Nextel’s chief executive officer, seem to indicate Nextel is willing to accept the plan.
On the PTT issue, Nextel had objected strongly to Verizon Wireless’ use of the term and other similar terms in advertising materials, with Nextel claiming the terms were trademarked.
