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Nextel and FCC Swap Bandwidth
evilninja writes "Techweb is reporting on the sale of 10MHz worth of bandwidth to Nextel by the FCC. One term of the agreement will solve a problem that has been frustrating the FCC for some time. Nextel will return some of their bandwidth to the public domain, since it has been interfering with local emergency channels in some areas."
More importantly they were using the channels that the FCC gave them to use for cell phones right ext to emergency channels.
No sir I dont like it.
I don't think this part of the spectrum is in the "public domain" as if anyone can use it. More accurately, it's been returned to the highly regulated, unaassigned pool of the spectrum.
The issue here is simple: if the current allocation of frequencies is cutting into emergency services, then that needs to be fixed.
The FCC was debating letting Nextel reorganize the 800MHz band in return for their slice. This no doubt pissed off all their competitors who had to pay millions for their GHz freqs.
Usefull links:
Slashdot: FCC to Reorganize 800 band.
FCC Options and Alternatives for 800 band
In nature, there are neither rewards or punishments, there are only consequences.
except if your house blocks the highway, they pay you fair market value for it.. its the same thing here.
Verizon is probably just pissed because they don't like competition. As for the 1.6 vs 3 billion, I'm not sure its that big of a steal. The 800 MHz mobile band is much more valuable then the 1.8 GHz PCS band, from the providors point of view.
One of the rules of RF cost/design is that as frequency goes up the electronics to increase the power and quality of the signal goes up, while the cost/size of the antennia goes down. The problem is, that the cost goes up faster for the electronics then the cost goes down for the antennia.
So they gave up an 800 MHz block that would probably be worth at least 1.5 to 3 billion to them, and bought another block. The money almost works out the same. What would have really sucked for Nextel and probably what Verizon wanted was for them to give up the 800 MHz block. And then lose the auction for the new block, cutting Nextel out of the market and reducing competition.
Also the higher the frequency the worse it is for distance. I can't remember the exact figures but I think for PCS you need 3 - 4 times the number of base stations as you need for the 800 MHz band.
As for upgrading the customer's phones, it won't be much if they already support the new band as many newer phones do. If they don't the customers are going to have to get new phones. In BC when Telus upgraded their PCS base stations to 3G the old 2G phones wouldn't work. They gave out their cheep phones to the old customers and didn't make them get a new contract. Nextel can do the same thing.
For the phones that already support the new frequency. The new frequency plan can be downloaded over the air during off hours, or even when the customer is talking on the phone.
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The general rule is that if the interfering transmitter is operating within FCC rules and sound technical practices, it isn't responsible for solving interference problems that are the result of deficiencies in the equipment that is suffering the interference.
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Federal regulators said that they would vote next week on a proposal aimed at resolving problems with cellphone interference in police and fire communications systems. According to an agenda released, the FCC vote will come at the agency's monthly meeting. Nextel Communications is largely blamed for causing the interference. Radios used by police, firefighters and other first responders broadcast on the same 800 Mhz spectrum as Nextel phones. So, if a radio dispatch is made at 850 Mhz near a cell tower broadcasting at 851 Mhz, the radio signal can be drowned out. The commission is expected to approve a Nextel backed plan in which the company would abandon some of its airwaves in exchange for more lucrative spectrum in a band that won't disrupt the radio communications of emergency officials. Nextel would be relocated to more valuable spectrum in the 1.9 Ghz frequency range, where most other cellular companies operate. Nextel's competitors, Verizon and Cingular Wireless, have staunchly opposed the move.
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Verizon is a landline company.. Verizon Wireless is a cellular company and bought all their bandwidth. They are entirely seperate companies with Vodaphone PLC owning the majority of the company not Verizon.
Either way verizon wireless arguement is valid. Just giving Nextel a 10mhz peice of spectrum for free is a slap in the face to all the other companies that have paid billions for their specturm. Nextel cannot tell me they were not aware that there could be problems with them moving in on the 800mhz area or they dont know what a spectrum engineer is for.
No, it just means the Nextel cell phones will have to be replaced with ones that work on the new frequency. Unless Motorola has been very forward thinking...
You are not alone. This is not normal. None of this is normal.
That's a true statement about the state of Verizon Wireless today, but neglects the history of where the bulk of their bandwidth licenses come from...
Verizon Wireless has heritage in the fact that FCC handed out the original cellular licenses in pairs in each area.. one went to the Baby Bell company of the area, and another went to a competor company. (Celluar being an unproven business at the time, the competitor slot went to the first company to stand up and be willing to invest in the technology... and there was sometimes a wait to find that newcomer.) As a result, Bell Atlantic, NYNEX and GTE (the Baby Bells who'd eventually merge into Verizon) all got into the wireless business that way. Those licenses are now in the hands of Verizon...
As a result, much of Verizon's bandwidth wasn't won at auction either.
The editing is so bad it hurts.
Technically, they sold a 10Mhz wide band of spectrum. Bandwidth is a measure of throughput.
Funny thing about the whole deal. I work for a 2-way radio company that has a table in a back room full of 800 Mhz radios. The radios came from companies that were using them. When Nextel purchased the 800 Mhz spectrum, we (back before I started) had to sell all of these companies new radios in a different spectrum. Well, Nextel has yet to build out in my area and it has been several years since all of this took place.
I overheard some of our current customers complaining that they thought the whole deal was phony and created to sell them new radios. And I could see where they are coming from since Nextel didn't build out and it has been years, it does make us look a little bad (each one of the radios on that back table is hundreds of dollars, so this was a *huge* amount of money spread across a lot of companies).
It would be almost a kind of irony if Nextel's customers had to buy new phones. First it makes companies have to spend a lot of money, then it turns around and makes consumers spend a lot of money.
Maybe Nextel's catch phrase should be: Nextel, we make a lot of money change hands.
(And if anyone was wondering, the 800 Mhz radios can be used for non-profit emergency-type stuff (VFD, first responders, sheriff, etc.), so my company has just started building out an 800 Mhz system and has started installing all of the radios and is eating all of the installation cost!)
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