800MHz Rebanding Resource

<%@LANGUAGE="JAVASCRIPT" CODEPAGE="1252"%> 800MHz Rebanding Resource


Rebanding FAQs: Public Safety/Government
	1.	What is interference and why is it a problem?
	2.	Why is the FCC doing this?
	3.	Licenses are not supposed to cause harmful interference. Why didn’t the FCC just fine Nextel and the cellular companies?
	4.	Is the FCC Order final?
	5.	Who will be affected?
	6.	When will the system relocations take place?
	7.	Do I have to change out all of my frequencies?
	8.	How will I pay for all this?
	9.	Just what am I negotiating during the “negotiation periods”?
	10.	Can I have my own lawyers and engineers to help negotiate an agreement? How can Shulman Rogers help?
	11.	What are “comparable facilities”?
	12.	How do I get compensated?
	13.	What if the money runs out before I get reimbursed?
	14.	How can I reprogram my system without downtime?
	15.	What if my radios can’t be retuned?
	16.	Who is going to be doing the work on my system?
	17.	When can I get access to additional spectrum?
	18.	Will there be a freeze on license applications?
	19.	I’m building out a new system now. How will this affect my construction deadlines and my relocation?
	20.	I’m in a Border area. How does this affect me?
	21.	How does the FCC know this will really eliminate interference?
	22.	What if I still get interference after I relocate?
	23.	What if I experience harmful interference before I relocate?
	24.	I've got a license. The FCC can't make me move, can they?
	25.	What is an irrevocable stand-by letter of credit?



1. What is interference and why is it a problem?
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

2. Why is the FCC doing this?
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 falling 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

3. Licenses are not supposed to cause harmful interference. Why didn’t the FCC just fine Nextel and the cellular companies?
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

4. Is the FCC Order final?
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 filed, and therefore certain aspects of the Order could change. In addition, since the Order requires Nextel to voluntarily surrender spectrum and money to solve the interference problems, Nextel must consent to the Order. Nextel accepted the Order on February 7, 2005, and as part of their merger with Sprint the new company will fulfill its obligations under the Order. In addition, the Order is still subject to challenge in federal court. At least two SMR operators have filed such a request with the Court Of Appeals. 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 to questions

5. Who will be affected?
Every licensee in the 800 MHz General Category band (851-853.9875/ 806-808.9875 MHz) will have to relocate on frequencies from 809/854.0125 to 816/861.9875 MHz (the "Middle Channels"). If you operate entirely above 853.9875/808.9875 MHz (and not on NPSPAC frequencies), you will not have to relocate. It should also be noted that public safety licensees on frequencies from 815/860.0125 to 815/860.9875 MHz, you may move lower in the band, if you wish, to be farther away from cellularized systems. Return to questions

6. When will the system relocations take place?
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 25, 2005, with the first regions beginning on 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. We can help you engage Nextel in these negotiations. Return to questions

7. Do I have to change out all of my frequencies?
Not necessarily. If you operate both Lower 150 and “middle” channels (other than in Canadian and Mexican Border Regions) 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 to questions

8. How will I pay for all this?
Your system relocation should not cost you a cent. The FCC requires that you be compensated for all of your reasonable expenses, including your legal and engineering fees. Further, you should not have to go "out of pocket" for any costs, and the TA has put in place a "Planning Funding" process so that you may receive "up front" money to plan your retune. For our part, we will time our billings with payment events in the agreement that is negotiated with Nextel, so that we'll receive payment when you receive payment. Return to questions

9. Just what am I negotiating during the “negotiation periods”?
When your 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 compensated, 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

10. Can I have my own lawyers and engineers to help negotiate an agreement? How can Shulman Rogers help?
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 that 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 to questions

11. What are “comparable facilities”?
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 to questions

12. How do I get compensated?
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 review the agreement and, if the Transition Administrator agrees that the costs are reasonable, the Transition Administrator will then authorize release of those funds as you provide written notice that applicable contract milestones have been met. Return to questions

13. What if the money runs out before I get reimbursed?
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. Return to questions

14. How can I reprogram my system without downtime?
Most systems 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. Return to questions

15. What if my radios can’t be retuned?
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. Motorola has recently created an 800 MHz information web site, which includes a listing of Motorola radios which must be replaced, and which may be reprogrammed. All Motorola radios operating on NPSPAC frequencies will, at a minimum, require new software. See Motorola's presentation on which radios will need replacing here. Return to questions

16. Who is going to be doing the work on my system?
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

17. When can I get access to additional spectrum?
Any frequencies that are "given up" by Nextel in the 854.0125-862 MHz band that are not used for rebanding will be made available to public safety agencies exclusively for three years once rebanding has been completed in that region. 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. Presently, the FCC has not decided what allocation mechanism it will use for this spectrum, and there is no "queue" at this time for potential applicants. Return to questions

18. Will there be a freeze on license applications?
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

19. I’m building out a new system now. How will this affect my construction deadlines and my relocation?
Licensees who are building out new systems have some 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. Return to questions

20. I’m in a Border area. How does this affect me?
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 to questions

21. How does the FCC know this will really eliminate interference?
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

22. What if I still get interference after I relocate?
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 once rebanding is completed). 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 to questions

23. What if I experience harmful interference before I relocate?
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, there is an "interim" protection standard until rebanding is completed. You can read more about the interim standard in the Summary on our 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

24. I've got a license. The FCC can't make me move, can they?
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 to questions

25. What is an irrevocable stand-by letter of credit?
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 the strongest guarantee possible 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. Return to questions

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