Nextel to get more for spectrum swap

Dec 21 2004 - 05:53 PM ET | Nextel

Nextel is expected to get $452 million in additional credits for spectrum that it will gave up to the FCC to improve emergency communication (Nextel's phones have been interfering with 911 communications among other things). bq. If the FCC commissioners agree, which could happen as soon as this week, Nextel's credit for the airwaves it vacates to improve emergency service communications would rise to just over $2 billion from $1.6 billion.

Nextel, the No. 5 U.S. wireless carrier, had said the airwaves it would give up were undervalued because the FCC miscounted how many potential subscribers the spectrum covered. The company asked the agency to reconsider its decision. The spectrum that Nextel is getting in return is valued at $4.8 billion--Nextel will pay the difference after everything is finished.

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