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Rebanding FAQs: Radio Dealers       1.   I don’t own any 800 MHz systems. How does this affect me?       2.   Why is the FCC doing this?       3.   Is the FCC Order final?       4.   Who will be relocated?       5.   When will the system relocations take place?       6.   What type of work will get done?       7.   Is there any geographic limit to the work I can perform?       8.   How will licensees get the money to pay for all this?       9.   How and when do I get paid?       10.   What if the money runs out before I get paid?       11.   How can I use this as a sales opportunity?       12.   How is 900 MHz affected by all of this?       13.   How can I help my customers understand this process?                                           1. I don’t own any 800 MHz systems. How does this affect me?     As a two-radio service company, you have an opportunity to earn significant revenue by conducting the system retunes for 800 MHz licensees. This Order will affect thousands of systems nationwide, and most system operators will need outside help to complete the process. 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 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           3. 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 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 to questions           4. Who will be relocated?     Most public safety systems will experience at least a partial relocation, if they have frequencies below 854/809 MHz, between 860-862/815-817 MHz, or above 866/821 MHz. Return to questions           5. 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. The order of the regions has been determined by the Transition Administrator (TA), 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, and the process formally started 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. It is currently anticipated that Nextel and the TA will attempt to engage as many as half of the NPSPAC regions simultaneously. Return to questions           6. What type of work will get done?     A typical system retune involves reprogramming repeaters to new frequencies, the temporary installation and programming of additional repeaters, tuning combiners, replacing combiner harnesses, and associated site work. On the radio side, all units must be located and reflashed with new information, often twice. This is basic radio technician work which requires no special training or tools beyond that needed for your everyday work. Most importantly, you will be paid in a timely manner at market rates for your work, so this is a good business opportunity. Return to questions           7. Is there any geographic limit to the work I can perform?     No, and the process is weighted toward creating nationwide opportunities. Retuning will be conducted on a regional basis, and it’s likely several regions will be going through the process simultaneously. This will create a flurry of activity which will likely overwhelm existing local radio service shops. So, there will be chances for you to bid on out-of-town work, either directly with licensees or as a subcontractor partner to a local shop. State and local government procurement rules may also require agencies to put the reprogramming work to a competitive bidding process. Return to questions           8. How will licensees get the money to pay for all this?     The system relocation should not cost Licensees anything. The FCC requires that they be reimbursed for all reasonable expenses directly attributable to retuning, including your invoices. You will be paid or your customer will be paid by by Nextel. The FCC also declined to adopt a detailed fee schedule, and left such details to the TA, so you can expect to be paid reasonable market rates for the work you perform. Return to questions           9. How and when do I get paid?     The agreement between the Licensee and 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), so you should be able to use your normal payment terms. You will be expected to prepare detailed invoices, which you will submit either to your customer or the Transition Administrator (TA) (depending on the procedures which are developed and the terms of the contract). Once the relocation agreement is signed, the TA will reserve funds for your project, and will release those funds as the Licensee provides written notice that applicable contract milestones have been met. Return to questions           10. What if the money runs out before I get paid?     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           11. How can I use this as a sales opportunity?     The relocation process through the Transition Administrator (TA) will fund costs associated with the move, but you also may be able to use the retuning process to create incremental sales. Since each radio on the system must be touched in many cases, this is the perfect opportunity for customers to schedule other system changes such as expansions and upgrades. If your customer has older radios they’ve been thinking about replacing they could use the reprogramming money as “trade in credit” toward purchasing new units to be deployed with the new frequencies. Because your employees will be in front of the customers, this is also a perfect opportunity to sell new or replacement accessories, or suggest routine maintenance like cleaning units or replacing broken antennas and connectors. While none of these items are reimbursable by the TA, this is the perfect opportunity to upsell your customer while they are focused on their radios. Since most government agencies have long budget cycles, you should begin discussing any planned system improvements now. Return to questions           12. How is 900 MHz affected by all of this?     As part of the Order, the FCC allowed the conversion of current 900 MHz Business and Industrial/ Land Transportation channels to commercial (CMRS) use. Nextel will be attempting to acquire these licenses in major markets to increase network capacity for their IDEN system (which now operates at both 800 and 900 MHz). For your conventional system customers at 900 MHz, such a transaction provides an opportunity to fund their migration to new technology (such as to a wide-area UHF Trunked system you may operate). We have strong contacts and experience negotiating hundreds of such deals with Nextel, and we can help you. Return to questions           13. How can I help my customers understand this process?     Our web site (www.800MHzrebanding.com) contains informational resources, including Frequently Asked Questions (FAQ) for public safety and private system licensees, pictorial explanations of the rebanding process, and a summary of the FCC Order. You should also attend, and encourage large strategic customers to attend, the various educational opportunities that arise (see the Calendar page). In addition, the attorneys at Shulman Rogers are poised to help both you and your customers in this process. Remember, attorney fees, as well as your fees, will ultimately be paid for by Nextel, so "teaming" with Shulman Rogers (and the engineering consultants who has sponsored this site) gives you a huge advantage in assisting your clients. Return to questions                       Sponsorship provided by