Verizon crying foul over spectrum swap

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There are three things you can count on in life: taxes, death and baby bells being sore losers. RCR Wireless News reports that “Verizon Wireless has sent a blistering letter to the Federal Communications Commission charging that the FCC is illegally negotiating with Nextel Communications Inc. regarding a key portion of the FCC’s plan to solve public-safety interference in the 800 MHz band.” Verizon says that FCC met secretly with Nextel while negotiating the big spectrum swap. VZ is presenting an analyst note from investment house, Legg Mason as evidence. Apparently, “an investor note released by Legg Mason Sept. 9, which reportedly says Nextel is attempting to reduce its payment by $600 million to $700 million.”

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This is one of the very few issues on which I agree with VZW’s thinking. Nextel basically got to trade in an un-unified network that was scattered everywhere across the 800MHz band for a 1900MHz system.

The 800MHz band(s) that Nextel currently operates in doesn’t allow them to offer any true 3G solutions like the other mobile companies are deploying. Nextel will now be in the position to compete with the other carriers on 3G thanks to the spectrum swap. The 1900MHz spectrum Nextel got was a “steal”, that spectrum would have sold for billions more in an auction.

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