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News | 02/08/2005 5:00 am EST

Nextel accepts FCC 800 MHz rebanding plan
Nextel Communications Inc. has accepted the Federal Communications Commission’s 800 MHz rebanding plan, bringing to a close three years of discussions to sort out interference issues. Under terms of the plan, Nextel will have three years to move public safety and other users to the 800 MHz band in exchange for 10 MHz of 1.9 GHz spectrum. The wireless operator is responsible for paying to move the users, and as such the FCC required Nextel to get a US$2.5 billion letter of credit. The transition will be done regionally with New York, Washington D.C. and San Francisco being first. FCC Chair Michael Powell said reaching an agreement was the easy part and that the hard part remains to be completed.

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