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The fight for the chunks of spectrum in the 700MHz and 800MHz bands have been among the worst examples of wireless politics, delaying the benefits to the industry and consumers of freeing up more space in this area - ideal for mobile, high data rate communications - possibly by years. In the 700MHz band, broadcasters are fighting any deadline to vacate the frequencies and free them up for communications as they move to digital TV. A great step backwards was taken this week, when the Senate Commerce Committee voted by 13 to nine to possibly never require broadcasters to return their spectrum in the 700MHz band.

The current law requires broadcasters to return the spectrum when 85 percent of the viewers in their area can receive a digital signal, or by the end of 2006, whichever is later, although Congress is divided on whether the 85 percent should include cable and satellite subscribers. Senator John McCain, a prominent campaigner against the broadcasters, who believes the rapid freeing of the frequencies is essential for public safety applications, criticized the committee's amendment to his public safety bill, claiming it showed how a "powerful special interest could trump public safety". His bill, among other measures, sought to set a hard date of 2009 to end the digital TV transition and improve spectrum availability for emergency response and law enforcement.

While McCain fumes against the lobbying power of the broadcasters, an even more unsavoury side of US telecoms policy making is shown by the long story of the Nextel spectrum swap. Nextel is to return spectrum in 700MHz and 800MHz that it holds, but which risk interfering with public safety applications, in return for purchasing new space in the sought-after 1.9GHz or 'G block' range. The main opponent of the agreement is Verizon Wireless, which claims the 1.9GHz frequencies should have been auctioned and that Nextel is getting them too cheaply.

Verizon now accuses the FCC of illegal negotiations with its rival, basing its claim on an investor note released by Legg Mason, which reportedly says that Nextel is seeking to reduce its payment for its new spectrum by $600-$700million. The FCC has valued the G block at $4.86bn and the spectrum that Nextel will relinquish at over $1.6bn. Nextel is to pay the balance to the Treasury, after relocation expenses are considered, but now seems to be trying to reduce this payment by upping the valuation of its 700MHz and 800MHz holdings - with its key bargaining counter the urgent requirement to sort out the public safety situation rapidly, both to avoid disasters and allay public opinion.

All this shows both the desperation of the carriers to acquire and hold on to spectrum (and prevent rivals getting it), and the murky climate in which the fight is being waged, almost worthy of Al Capone himself. This will only be worsened by the involvement of other parties, not just broadcasters but broadband wireless, cable, ILEC and computer interests. This mass of sometimes conflicting parties could strike a severe blow to the FCC's hopes of effecting a wireless revolution through auction of significant new swathes of 1.9GHz PCS spectrum.

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