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Rebanding FAQs: Private Radio
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1. |
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What
is interference and why is it a problem? |
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2. |
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Why
is the FCC doing this? |
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3. |
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Licenses
are not supposed to cause harmful interference. Why didn’t
the FCC just fine Nextel and the cellular companies? |
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4. |
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Is
the FCC Order final? |
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5. |
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Who
will be affected? |
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6. |
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When
will the system relocations take place? |
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7. |
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Do
I have to change out all of my frequencies? |
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8. |
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How
will I pay for all this? |
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9. |
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Just
what am I negotiating during the “negotiation periods”? |
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10. |
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Can
I have my own lawyers and engineers to help negotiate an agreement? How can Shulman Rogers help? |
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11. |
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What
are “comparable facilities”? |
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12. |
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How
do I get reimbursed? |
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13. |
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What
if the money runs out before I get reimbursed? |
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14. |
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How
can I reprogram my system without downtime? |
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15. |
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What
if my radios can’t be retuned? |
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16. |
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Who
is going to be doing the work on my system? |
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17. |
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When
can I get access to additional spectrum? |
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18. |
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Will
there be a freeze on license applications? |
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19. |
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I’m
building out a new system now. How will this affect my construction
deadlines and my relocation? |
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20. |
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I’m
in a Border area. How does this affect me? |
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21. |
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How
does the FCC know this will really eliminate interference? |
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22. |
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What
if I still get interference after I relocate? |
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23. |
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What
if I experience harmful interference before I relocate? |
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24. |
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I've got a license. The FCC can't make me move, can they? |
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25. |
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What
is an irrevocable stand-by letter of credit? |
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| 1. What is interference
and why is it a problem? |
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Interference in the public safety 800 MHz spectrum
is any type of inhibition or prevention of radio signal reception.
Currently, police officers, fire fighters, and emergency response
personnel across the country are experiencing episodes of interference
– garbled, fuzzy or blocked calls over their radios. This
happens because public safety channels are intermingled among
and adjacent to commercial channels such as those used for cell
phones. Clear communication is a critical component for first
responders to take action quickly and efficiently – when
it’s not possible, lives are at stake.
Return
to questions |
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| 2. Why is the FCC doing this? |
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After an exhaustive rulemaking proceeding in which
all affected and interested parties were given an opportunity
to comment, the FCC determined that a reorganization of the
800 MHz band is the most effective way to eliminate both of
the principal causes of interference: adjacent channel interference
will be eliminated because low-power cellular-type systems and
high-power high-site systems will no longer be spectrum neighbors.
This will eliminate interference caused by the near-by cellular
site’s signal overwhelming the public safety radio’s
receiver. Since intermodulation interference is caused by two
frequencies combining to create a new third frequency which often falls directly on a public safety frequency, public safety systems are being relocated so that they
will no longer be sandwiched between ESMR (i.e., Nextel) and
cellular (i.e., Verizon, Cingular/AT&T Wireless, Alltel)
systems.
Return to questions
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| 3. Licenses are not supposed to
cause harmful interference. Why didn’t the FCC just fine
Nextel and the cellular companies? |
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The Commission cannot fine or punish Nextel because
Nextel has not broken any FCC rules. Nextel, the cellular carriers
and public safety radio systems are all operating legally within
the technical parameters of their licenses. When the FCC authorized
the construction of ESMR systems in the 1990’s, it just
didn’t foresee these problems with interference caused
by the present spectrum allocation scheme. In the Consensus
Plan, Nextel volunteered money to pay the cost of solving the
problem, and the FCC decided to take the offer, but with its
own conditions. So, Nextel must agree to accept the FCC plan, which they did on February 7, 2005.
Return to questions
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| 4. Is the FCC Order final? |
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The Order became final on December 22, 2004, 30 days after it is published in the Federal Register. However, there were several Petitions For Reconsideration of the Order and Clarification Requests that have filed, and some considered, and therefore certain aspects of the Order have changed and still could change. Nextel accepted the Order on February 7, 2005 (and Nextel's agreement with Sprint provides that the merged company will accept all of the responsibilities of the Order). It should also be noted that the two parties who provided the most vocal opposition to the Consensus Plan, Verizon Wireless and Cingular, have each publicly announced they will not challenge the FCC Order.
Return
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| 5. Who will be affected? |
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Every licensee operating on frequencies in the 800 MHz
General Category band (851-853.9875/806-808.9875 MHz) will have
to relocate (the Order also affects non-public safety licensees
in the 800 MHz band, as well as incumbent licensees at 900 MHz
and 1.9 GHz). If you operate entirely above 853.9875/808.9875
MHz, you will not have to relocate.
Return
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| 6. When will the system relocations
take place? |
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The FCC has mandated that the nationwide retuning
process be completed in three years from the time the Order
becomes Final. Retuning will commence on a region-by-region
basis among the 55 NPSPAC planning regions (these are regions
in which public safety committees determine their own spectrum
allocation plans). The order of the regions has been determined
by the Transition Administrator, taking into account such factors
as the prevalence of interference, size of population served,
Border-region status, and impact on adjacent regions. The TA
released the schedule of
the regions on January 31, 2005, with a start date of June 27, 2005. Once the FCC issues an Order
commencing rebanding in a particular region, there will be a
180-day negotiation period for all affected licenses. If you
are currently experiencing interference or have special circumstances,
you may want to move earlier. We can help you engage Nextel
in these voluntary negotiations.
Return
to questions |
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| 7. Do I have to change out all
of my frequencies? |
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Not necessarily. If you operate both Lower 150
and “middle” channels you will be required to move
your lower channels from the General Category band (851-853.9875/806-808.9875 MHz) “up” to the “middle”
bands (854.0125-862/809.0125-817 MHz) to clear the way for the
public safety NPSPAC licensees. Your licenses in the “middle”
bands can stay where they are. The relocations will be staggered
across the 55 NPSPAC regions; in each region, the Lower 150
channels will be vacated first by Nextel and other licensees,
to clear the way for the NPSPAC systems to move.
Return
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| 8. How will I pay for all this? |
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Your system relocation should not cost you a cent.
The FCC requires that you be reimbursed for all of your reasonable
expenses, including your legal and engineering fees. You will
be paid or reimbursed by the Transition Administrator out of
funds provided by Nextel.
Return
to questions |
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| 9. Just what am I negotiating
during the “negotiation periods”? |
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When your NPSPAC region begins the retuning process
there will be a 90-day voluntary negotiation period followed
by a 90-day mandatory negotiation period. You will be negotiating
your System Relocation Agreement with Nextel. This agreement
will spell out the replacement frequencies, the amount you will
be reimbursed, any equipment which will be given or loaned to
you, and the timing of your move. Nextel will ask for certain
information about your system (such as the number of sites and
number and models of radios) and will use this information as
the basis of an offer to you. It is important that your information
is accurate (to ensure full compensation for your costs), and
it’s important that you respond in a timely manner (or
you could face FCC penalties).
Return
to questions |
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| 10. Can I have my own lawyers
and engineers to help negotiate an agreement? How can Shulman Rogers help? |
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Absolutely! You should retain your own independent
professionals to assist you in the details of relocation, and
these costs are reimbursable. You will be signing off with your
bosses on a plan to reconfigure critical communications systems
your customers (whether internal or external) rely on. If anything
goes wrong, the buck stops with you. Why wouldn’t you
want the assurance of experienced counsel who can review the
deal terms and the agreements for you to avoid trouble down
the road? And, your legal costs will be reimbursed, so it’s
like free insurance. The attorneys at Shulman Rogers have been involved in every aspect of the 800 MHz band for the past twenty years. Shulman Rogers was a part of the team that drafted the 800 MHz Consensus Plan, and Shulman Rogers attorneys have negotiated over 100 re-tuning agreements with Nextel. In short, Shulman Rogers brings to the you most experienced and qualified team for this effort.
Return
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| 11. What are “comparable
facilities”? |
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Under the Order, “Nextel is obligated [at
its cost] to ensure that relocated licensees receive at least
comparable facilities when they change channels.” The
FCC defines comparable facilities to include three main factors:
(1) Throughput (the amount of information transferred within
a system in a given amount of time); (2) Reliability (the degree
to which information is transferred accurately within a system);
and (3) Operating Costs (the cost to operate and maintain the
system). The FCC also requires that licensees must receive clear,
incumbent-free spectrum to the same degree as their current
channels, and providing at least the same geographic coverage.
So, a licensee on an exclusive channel cannot be moved to a
shared channel, but a licensee who currently shares a channel
(such as a community repeater user) is only entitled to shared
replacement spectrum. In other words, “you get as good
as you got.”
Return
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| 12. How do I get reimbursed? |
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The agreement you negotiate and sign with Nextel
will govern the amount and timing of the payments you receive.
The FCC has said that payments should be structured appropriately
to meet project needs (for instance, most radio service vendors
expect a deposit before work commences, with the balance paid
upon completion of their work). Once your agreement is signed,
the Transition Administrator will release those funds as you and Nextel provide written
notice that applicable contract milestones have been met.
Return to questions
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| 13. What if the money runs out
before I get reimbursed? |
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The FCC has taken great care to structure the
Order so that this will not happen. Nextel will be required
to post a $2.5 billion stand-by letter of credit to guarantee
its obligation to pay the relocation funds. If Nextel doesn’t
make any payments on time, the letter of credit will provide
money to the Transition Administrator, then the issuing bank
will collect from Nextel. Plus, the TA is required to earmark
the funds when your agreement is signed, before you start work
on your relocation.
Return
to questions |
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| 14. How can I reprogram my system
without downtime? |
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Your system can be fully reprogrammed while remaining
“live.” Hundreds of 800 MHz radio systems (including
mission-critical public safety and utility systems) have been
retuned without a fully redundant system or redundant subscriber
units. You will probably need some additional components (such
as extra repeaters to “bridge” the retune period),
but Nextel will loan out this equipment during the retune. Thus,
most licensees will not need a redundant system. However, the
FCC Rules provide that if a redundant system is the only course
to ensure no downtime for your operations, then you are entitled
to have that redundant system.
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| 15. What if my radios can’t
be retuned? |
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Nearly all radios currently in use can be retuned
to any frequency in the 800 MHz band, but a few of the oldest
models cannot. Those few radios will have to be replaced, but
most radios can be recrystalized or reprogrammed to your new
frequencies. If some of your radios must be replaced, you will
receive replacements (usually professionally reconditioned units)
or the money to replace them yourself.
Return
to questions |
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| 16. Who is going to be doing
the work on my system? |
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That’s for you to decide. No one will touch
any of your equipment without your permission. You have the
right to select the technicians who complete your retuning,
and you can choose to use your own employees, outside contractors,
or a combination of both. You will be reimbursed for all costs,
and reimbursement will be at market rates, so contractors will
want your business.
Return
to questions |
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| 17. When can I get access to
additional spectrum? |
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You will have access to some of the vacated channels,
but you will have to wait several years. Channels vacated by Nextel below 862 MHz, but not used in rebanding, will be available for licensing by public safety eligibles
exclusively for three years. For an additional two years after
that, it will be open only to public safety or “critical
infrastructure industries (CII)” (such as utilities).
After this five-year period, any unclaimed spectrum can be licensed
by any private radio applicant as well as public safety and
CII on a first-come, first-served basis. However, please note that any B/ILT spectrum that is available to you today, will remain available to you, it is not part of the public safety hold-back
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| 18. Will there be a freeze on
license applications? |
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As each NPSPAC region
begins its retuning process, there will be a Temporary Freeze
on applications and modifications. This “lock down”
will allow all licenses to be relocated in an orderly fashion.
After retuning is completed in a region, the freeze will lift.
Return to questions
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| 19. I’m building out a
new system now. How will this affect my construction deadlines
and my relocation? |
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Licensees who are building
out new systems may have flexibility to wait for their replacement frequencies.
The FCC will consider waivers of construction deadlines on a
case-by-case basis if licensees can demonstrate they would otherwise
be on track to meet the deadline. Licensees must be prepared
to provide evidence such as construction of a new tower which
is underway, a commitment to lease tower space, or a firm order
for 800 MHz repeaters and associated equipment. If the FCC grants
a waiver, your construction deadline will be extended to either:
(1) six months after the Transition Administrator designates
your replacement channels; or (2) if your replacement channels
are subject to interference today, six months after rebanding
is completed in your NPSPAC region.
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| 20. I’m in a Border area.
How does this affect me? |
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At this time, we don’t know. The FCC Order
says that, to the extent possible, the new 800 MHz band plan
should be adopted in the Border area, but this will require
revisions to treaties between the U.S. and Canada and Mexico.
The FCC has asked its international negotiators to begin discussions
with the other countries toward making those revisions, but
no one knows how long that might take.
Return
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| 21. How does the FCC know this
will really eliminate interference? |
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The Commission has reviewed extensive engineering
data filed by the commenters and has consulted its own staff
of experts, and the FCC believes this is the most effective
way to eliminate both of the principal causes of interference:
adjacent channel interference will be eliminated because low-power
cellular-type systems and high-power high-site systems will
no longer be spectrum neighbors. This will eliminate interference
caused by the near-by cellular site’s signal overwhelming
the public safety radio’s receiver. Since intermodulation
interference is caused by two frequencies combining to create
a new third frequency in between the two, public safety systems
are being relocated so that they will no longer be sandwiched
between ESMR (i.e., Nextel) and cellular (i.e., Verizon, Cingular,
AT&T Wireless) systems.
Return
to questions |
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| 22. What if I still get interference
after I relocate? |
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There are no guarantees the FCC plan will eliminate
all interference, since radio frequencies are ultimately controlled
by the laws of physics. The FCC has also adopted stringent “enhanced
best practices” which define harmful interference standards
(any licensee operating within their permitted contour is entitled
to protection if their measured received signal is at least
-101 dBm for portables and -104 dBm for mobiles). The new Rules
also require any licensee causing interference to private radio
systems to respond to the complaint within 48 hours. All of
the cellular carriers and Nextel have worked together
to establish a single electronic point of contact (an e-mail address) where licensees can file interference
complaints. Once you file a complaint, all carriers with sites
within 5,000 feet of the affected location are required to respond
to the complaint and begin investigations. The carriers must
complete an analysis of the situation within 96 hours from the
initial complaint, and all cellular CMRS carriers have to resolve
harmful interference at their cost.
Return
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| 23. What if I experience harmful
interference before I relocate? |
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The Commission is still operating under the “voluntary
best practices guide” for resolving interference, in which
Nextel and other carriers have voluntarily committed to responding
in a timely fashion, although the Order, when it becomes Final,
will make the “enhanced best practices” –
including the 48-hour initial response time – mandatory.
Further, the FCC adopted an "interim" protection standard. You can read the details on the interim standard in our Summary, found on the Resources page. Until a single point of contact for all carriers is created
under the Order, any licensee experiencing harmful interference
should contact Nextel directly at publicsafety@nextel.com.
Return to questions
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| 24. I've got a license. The FCC can't make me move, can they? |
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The Communications Act gives the FCC the authority to change your authorized frequency. If you refuse to change frequencies (assuming that the FCC determines that the re-banding offer extended to you meets the Commission's Rules), the Commission has the authority to fine you or revoke your license.
Return
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| 25. What is an irrevocable stand-by
letter of credit? |
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As part of the Order, The Commission is requiring
Nextel to obtain a $2.5 billion irrevocable standby letter of
credit to guarantee its commitment to pay for its retuning obligations.
This sounds like complicated financial stuff, but effectively,
this is just a really strong guarantee that Nextel will provide
the money. A standby letter of credit (LOC) is a contract between
a bank (or other financial institution) and Nextel, in which
the bank guarantees payment to a specified third party (in this
case, the Transition Administrator, or TA). If Nextel defaults
(doesn’t pay when it’s supposed to) on any of its
obligations to provide funds to the TA, then the TA can make
a demand on the letter of credit, and the bank will pay the
TA with few questions asked. (The bank will then turn around
and collect its money from Nextel according to the terms of
the LOC). The “irrevocable” part makes it even stronger:
the bank cannot cancel the letter during its term no matter
what happens, including Nextel’s insolvency. Short of
cash up front, this is one of the strongest guarantees of payment
that Nextel can provide. To obtain the irrevocable LOC, Nextel
will have to pay the issuing bank a substantial fee, and will
have to provide at least $1.5 billion worth of assets as collateral
that the bank can seize if Nextel can’t repay the bank.
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