Use Of New Data Prompted Nextel Spectrum Revaluation: FCC

WASHINGTON (Dow Jones)--The use of more county-specific data prompted the Federal Communications Commission's revaluation of the assets Nextel Communication Inc.'s (NXTL) would give up in its proposed spectrum swap with the agency, an FCC official said Thursday.

Late Wednesday, the FCC improved the terms of its proposed deal with Nextel by giving the company an additional credit of $452 million for its spectrum assets, boosting the total credit Nextel would receive under the plan to $2.06 billion from about $1.6 billion.

"We were provided much more specific information," John Muleta, head of the FCC's Wireless Telecommunications Bureau, said in a conference call. "We felt it would be remiss of the commission not to address these issues."

In a July deal valued at $4.8 billion, the FCC voted to grant the company's request for a 10-megahertz swath of prized spectrum, capable of handling new services such as wireless Web browsing. In return, Nextel would give back slices of its interference-causing airwaves and pay to help relocate affected users.

In September, Nextel asked the agency to reconsider its valuation of Nextel's spectrum. The FCC used its same formula, but this time the company "came back with much more granular data" from 3,200 markets on a county-by-county basis, Muleta said.

Nextel has until Feb. 7 to accept or reject the deal.

- By Brian Blackstone; Dow Jones Newswires; 202-828-3397; brian.blackstone@dowjones.com

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Posted to the site on 23rd December 2004