Qualcomm Inc (QCOM)

[khemara_qc]

Nextel closer to spectrum swap
By Paul Taylor in New York
Published: November 2 2004 14:26 / Last updated: November 2 2004 14:26

Nextel Communications, the fifth largest US mobile carrier, on Tuesday moved closer to reorganising its wireless spectrum after Verizon Wireless said it would not oppose a plan that would give Nextel new spectrum valued at $4.86bn.


The move, part of a wide-ranging agreement between the rivals to resolve all their legal disputes, clears the way for the controversial spectrum swap plan thrashed out during more than two years of negotiations.

Under the proposal, Nextel will swap spectrum it owns in the 800Mhz band prone to interference with public safety service radios, including fire and police for new spectrum in the coveted 1.9GHz band used by most mobile operators.

The swap will make it easier and more cost-effective for Nextel to offer advanced data services to its expanding customer base. The announcement on Tuesday that Verizon would not seek to block the plan in court helped lift Nextel's share price by more than 3 per cent in early trading.

Verizon Wireless, a joint venture between Verizon Communications of the US and the UK's Vodafone group, and the second biggest US mobile phone network operator, was the most vocal opponent of the plan, approved in July by the Federal Communications Commission.

The company had argued that Nextel was getting the airwaves too cheaply and that the spectrum should be offered at public auction.

In return for Verizon Wireless's promise not to oppose the spectrum swap, Nextel said that it would forego ownership rights to the “push to talk” walkie-talkie style Direct Connect service.

http://news.ft.com/cms/s/180db97a-2cdb-11d9-b120-00000e2511c8.html