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July 19, 2004
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FCC unanimously approves spectrum "Consensus Plan"

By Jeff Arnold
Deputy Legislative Director

The Federal Communications Commission has unanimously approved a plan aimed at eliminating cell-phone interference with hundreds of public-safety communication systems. This electromagnetic spectrum-swapping plan has been dubbed the "Consensus Plan."

The adoption of this framework on July 8 is particularly good news for county public-safety agencies because public-safety interference problems will be eliminated, and the cost of making any changes to their public-safety communications systems would be borne by Nextel. NACo is on record Ð with all the major public safety associations Ð supporting the Consensus Plan. Other plans were submitted, but none would have actually paid the costs to local governments for necessary modifications.

Nextel, the nation’s sixth-largest cell-phone company, will pay about $1.9 billion for the new spectrum. The spectrum it is giving up is valued at $1.6 billion, and the cost of ensuring public-safety agencies that have systems free of disruptions from cell phones is estimated at $1.3 billion. The value of the spectrum they will receive in exchange has been estimated to be worth $4.8 billion.

Radios used by sheriffs, police, firefighters and other first responders occupy the same 800-megahertz spectrum as Nextel cell phones. Public-safety agencies first started complaining about the interference five years ago and turned to the FCC for help. Hundreds of agencies nationwide have had difficulty making radio calls, or have had communications disrupted because of Nextel cell phones, and NACo has worked with Nextel and the FCC to find a solution.

This may not be the final chapter however. Verizon Wireless, the nation’s largest cell-phone company, strongly objects to the FCC’s action and may sue in federal court to stop the FCC from implementing the plan. They believe the spectrum should have been auctioned to the highest bidder, and that Nextel is getting an economic windfall.


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