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Nextel Offers FCC $850 Million for Portion of Frequency Spectrum

The FCC is considering the proposal as a way to alleviate public safety interference problems

Last week, as reported by internetnews.com, Nextel offered the Federal Communications Commission (FCC) $850 million for a valuable swath of spectrum. Verizon Wireless, Nextel's rival, urged the FCC to auction the spectrum range saying that an auction is the only way to obtain fair market value and that the deal amounts to a "multi-billion-dollar give-away."

The FCC is considering Nextel's proposal as a way to alleviate interference problems on the frequency used by public safety agencies. A decision is expected in the next few weeks.

Nextel wants the FCC to relocate public safety agencies and private wireless licensees in a portion of the 800 MHz band. In exchange, the FCC would license a 10 MHz block of contiguous spectrum to Nextel at 1.9 GHz.

The move would be completed over 42 months. The first nine months would be devoted to frequency planning and data collection. Transfer of the largest public safety systems would occur in the final stages.

Nextel said its rival misrepresented the value of the spectrum, adding that the spectrum move will cost $4.6 billion to succeed.