FCC says yea to spectrum swap

Nextel got what it wanted, for a price. FCC yesterday gave the final order on the public safety spectrum swap. Nextel will spend $3.25 billion to get out of 800MHz and gain access to 1.9GHz spectrum. The 800-MHz band will be cleared to make way for additional public-safety agencies. $2.18 billion is for spectral relocation and $1.07 billion goes to the US treasury as away to make up for the difference between the value of spectrum Nextel is getting and giving up. Actually it is not such a big deal in terms of price – Nextel as a company is doing spectacularly well and is generating a lot of cash. This new spectrum also opens the door for the company to use Flarion as its next generation data service. Whiners over in New Jesey and New York will appeal this decision, but looks like FCC has made-up its mind.