WASHINGTON-The Federal Communications Commission last week said the Justice Department has made initial queries regarding Nextel Communications Inc.’s request to lift a 1994 antitrust consent decree so the nation’s largest dispatch operator can acquire more licenses, possibly those of bankrupt Geotek Communications Inc.
In fact, according to a government source, Justice questioning created quite a stir after the Wireless Telecommunications Bureau learned that FCC staffers in the Gettysburg, Pa., office had talked to antitrust officials.
Top WTB officials at the FCC’s headquarters here, the source said, thereafter directed Gettysburg licensing personnel to forward all Justice queries to them.
“It’s become very turbulent,” the source said of the Nextel-Justice issue.
“I think the level of contact has been mid-level staff to mid-level staff” and generic in nature, said WTB Chief Dan Phythyon. Phythyon downplayed the internal flap in Gettysburg.
In September, RCR first reported Nextel and Justice were negotiating the removal or modification of the 1994 consent decree. At that time, Nextel denied talks were not going well with Justice.
The 1994 antitrust settlement was prompted by Nextel’s huge purchase of specialized mobile radio properties from Motorola Inc. several years ago. Justice, foreseeing potential anticompetitive problems if the deal went through, got Nextel to agree to sell 900 MHz licenses in major markets where it already held 800 MHz licenses and to forgo 800 MHz licenses in Atlanta.
Nextel last week did not return calls for comment.
The Justice Department, for its part, also is being tight-lipped about discussions with Nextel.
“Nextel is seeking relief from the 1994 consent decree and the issue has not been resolved yet,” said Jennifer Rose, a Justice spokeswoman.
The Nextel request poses an interesting challenging to Justice trustbusters.
Just what antitrust analysis should apply?
Nextel controls more than half of the 3.1 million specialized mobile radio units in operation today. Yet Nextel also competes with cellular and personal communications services carriers-which have far more spectrum than Nextel-for high-end digital mobile telephone customers throughout the country.
Nextel devices offer a mix of mobile telephone, alphanumeric messaging and dispatch radio communications.
In the past year, innovative Nextel roaming and pricing plans have been emulated by cellular and PCS companies.
