Howard Buskirk

The FCC sent a clear signal last week that it will conduct a thorough investigation of the Cingular-AT&T Wireless merger, sending both companies a 12-page letter late Thurs. raising questions that probe fine points of the merger. Observers viewed the letter as a sign that the FCC may look at the merger more closely than had been thought, rather than leaving the more careful analysis to the Dept. of Justice (DoJ).

Verizon Wireless announced late Thurs. an agreement to buy Qwest Communications wireless assets for $418 million. The agreement includes spectrum licenses in 62 markets in 14 Western and Midwestern states in Qwest’s traditional service territory. All the licenses provide 10 MHz of spectrum in the 1.9 GHz range -- the same spectrum band at issue in the Nextel fight. The companies said 53 of the licenses are in markets where Verizon already has operations and the extra spectrum will provide additional capacity. These cities include Phoenix, Albuquerque, N.M., Tucson, Ariz., Salt Lake City, Minneapolis-St. Paul, Denver, Portland, Ore., Seattle, and Omaha, Neb. Qwest announced last year plans to wholesale wireless through Sprint while selling off its physical assets as well as the licenses for the spectrum. A Qwest spokeswoman said the company intends to continue as a regional carrier. “The sale completes our shift from a network-centric wireless provider to a more customer-focused operation that is designed to deliver exceptional value and service to customers,” said Oren Shaffer, Qwest vice chmn. “The monetization of the network assets further improves our liquidity.” The companies said they hoped to close the deal late this year or early in 2005. Unlike many such deals, the Verizon purchase had not been rumored prior to the announcement.

Comr. Abernathy’s 5-year term as a member of the FCC formally expired on Wed., but that event did not set off alarm bells in her 8th floor suite. Under the Communications Act a member of the FCC is allowed to serve through the session of the Congress that starts the following year. Abernathy would be able to serve without Senate action into Jan. 2006, through the adjournment of the 1st session of the 109th Congress. An Abernathy legal advisor said Wed. she was waiting until after the Nov. election before deciding whether to seek another term. Wed. also marked the one year anniversary of the expiration of Comr. Adelstein’s term. President Bush has yet to nominate him for a full term. Absent Senate action Adelstein will have to leave when this Congress adjourns sine die.

Comr. Copps Wed. sharply criticized a letter from Verizon Gen. Counsel William Barr suggesting that FCC Comrs. would violate criminal laws if they voted to give Nextel 10 MHz at 1.9 GHz as part of the 800 MHz rebanding proposal. Copps also said he had not seen any interim UNE rules, which he predicted will not be simple to put together.

Verizon Gen. Counsel William Barr, a former U.S. attorney general, warned in a letter to the FCC late Mon. that commissioners could open themselves to criminal prosecution if they sided with Nextel on its 800 MHz rebanding plan. The letter also argued that the FCC has no legal authority to expend federal dollars to support the relocation costs of public safety agencies or companies like Nextel.

The next focus of scientists examining the health effects of radiation frequency (RF) emissions across the world is likely to be the effects of such emerging technologies as Wi-Fi and radio frequency identification (RFID), according to speakers Mon. at an international workshop in Washington on mobile telephony and health.

CTIA Pres. Steve Largent expects major carriers to look to Capitol Hill for support in changing the rules for Auction 58, scheduled for Jan., which set aside a majority of licenses that will be auctioned for purchase by smaller carriers considered to be designated entities (DEs). Largent said members of Congress are “protective” of the revenue from spectrum auctions, but it appears unlikely the FCC will reverse course. “It’s just a dumb provision,” Largent said. “There are numerous ways that are apparent to everybody that people work around the DE [requirements]. What’s the point?” Asked about the FCC changing the rules, FCC Comr. Abernathy noted Thurs. that the Wireless Bureau has supported providing some licenses to just DEs. “I know it’s the rules the bureau wants to use,” she said. “Some of the large players wish there were fewer designated entities, but as of right now I'm unaware of any proceeding that would change that.”

The Administration’s spectrum management plans, unveiled late Thurs. following a speech by President Bush at the Commerce Dept., received mixed reviews. The Administration made 24 proposals for improving the management of spectrum policy, including a govt. testbed (CD June 25 p5), the proposal getting the most attention. Critics suggested Fri. that the reports are heavy on process, but on their own will do little of significance.

CTIA and other wireless carriers launched a massive, last minute offensive Thurs. aimed at turning around the FCC’s expected decision to give Nextel 10 MHz of spectrum at 1.9 GHz. CTIA said in a filing that NextWave auction reserve prices confirm that giving Nextel 1.9 GHz as part of a rebanding scheme would constitute a “massive giveaway.” Meanwhile, an alternate public safety group held a press conference to denounce the plan.

In his most comprehensive remarks so far on broadband and telecom issues, President Bush told a packed auditorium of public officials at the Commerce Dept. he views broadband rollout, including broadband over powerlines (BPL), more efficient use of the spectrum and wireless broadband, as key building blocks of the U.S. economy.