Tazewell Appeal May Have Chilling Effect on 800 MHz Negotiations
Sprint Nextel asked an administrative law judge to throw out an FCC ruling that the carrier must replace NPSPAC- capable radios in Tazewell County, Ill., in the 800 MHz rebanding. The Tazewell case has been among the most prominent disputes between Sprint and a licensee. The attorney for Tazewell told us Fri. the case shows why the FCC erred this week in denying that Sprint should have to pay postmediation litigation costs.
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“It’s devastating to now have to go into a hearing, because we won at the FCC, the FCC overturned the mediator’s decision, and now Nextel has asked for a hearing before an ALJ,” said Alan Tilles, who represents public safety licensees. “Now you're talking about Tazewell County having to spend what, $10,000-$40,000, in fees to do a hearing when they've already won.” Tilles said the result is to give the company “a hammer over licensees heads, because now a licensee knows that Nextel could appeal and start running up the bill on the licensee.”
Tilles filed at the FCC in Dec. 2005 asking the FCC to “clarify” that under its 2004 800 MHz rebanding order Sprint Nextel should have to cover licensees’ costs when rebanding decisions are disputed. The FCC last week dismissed Tilles’ petition in a broader order excluding legal fees from “reasonable and prudent relocation costs incurred by licensees” that should be paid by Sprint (CD May 31 p1). “We conclude that the Commission’s prior orders strike the appropriate balance between licensee rebanding costs that must be borne by Sprint and licensee litigation costs that must be borne by the licensee,” the agency said.
Tilles said the FCC made a bad policy call in an attempt to force agreements between Sprint and licensees and preventing frivolous appeals. “It forces agreements to be made, but it doesn’t necessarily force fair agreements,” he said. “To have to go through a hearing before an ALJ is absurd, particularly when the licensee has won an earlier decision… There’s just no way that licensees should have to pay their costs when it’s Nextel that files the appeal.”
Sprint said the FCC had made the right call in the 800 MHz order. “Sprint is gratified that the FCC decided Sprint is not required to bear the licensees’ legal cost of post mediation disputes,” a company statement said: “The Commission’s decision on this matter strikes the right balance and will help assure we reach agreements with licensees in a manner that will move the 800 MHz reconfiguration effort forward.” The carrier added: “Sprint, just like any other 800 MHz licensee, has the right to appeal a Bureau decision to an administrative law judge.”