WASHINGTON-Earlier this week, Nextel Communications Inc. submitted the financial paperwork required by the Federal Communications Commission as part of its plan to resolve public-safety interference in the 800 MHz band.
The paperwork has not yet been made publicly available, but Nextel made copies available to RCR Wireless News.
Nextel has obtained a total of $2.5 billion in irrevocable financing from nine different banks. Each bank is securing $312,500,000 or 12.5 percent.
U.S. Bank National Association has agreed to serve as the trustee if the FCC grants a waiver because it is part of Nextel’s $4 billion revolving term loan. U.S. Bank’s current commitment is $25 million.
The Chicago-based law firm, Jones Day, submitted a bankruptcy letter confirming the letter of credit would withstand current bankruptcy rules. Jones Day refused to comment on future changes to the bankruptcy law. The U.S. Senate Thursday passed sweeping bankruptcy-reform legislation.
Nextel Partners Inc. also submitted a letter “confirming its commitment to retune its systems and cooperate in the license swaps and associated actions and procedures necessary to complete reconfiguration of the 800 MHz band.”
The documentation was filed March 7, one month after Nextel publicly accepted the FCC’s plan. The FCC in July adopted a plan to solve the interference problem by swapping some spectrum with Nextel and having Nextel pay to move other companies off the spectrum band Nextel would receive. The FCC released the text of the plan in early August and made modifications to it in December.
Nextel is now obligated to fix an interference problem public safety was experiencing because Nextel’s systems were interleaved with public safety.
In return for $4.8 billion in retuning costs and a payment to the U.S. Treasury, Nextel will get 10 megahertz of spectrum in the 1.9 GHz band, also known as the G block.
In December, Nextel agreed to merge with Sprint Corp. While Sprint was not a signatory to the acceptance, Robert Foosaner, Nextel chief regulatory officer and senior vice president, said last month that “the new company will meet all of the obligations.”
