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FCC Approval of Sprint Nextel (FCC 05-148)

August 8, 2005

Although we decline to impose the conditions recommended by petitioners detailed above, we note that as part of the Application, the Applicants have made a voluntary commitment to observe two service implementation milestones in the 2.5 GHz band, unless circumstances beyond their control prevent them from achieving these milestones.   Applicants committed themselves to this restriction without regard to any finding that the merger of Sprint and Nextel would result in competitive harm in the mobile data services market or in the fixed broadband services market in the 2.5 GHz band.  We condition our grant of the Application on Sprint Nextel’s commitment to meet these milestones, described below.
First, within four years from the effective date of this Order, the merged company will offer service in the 2.5 GHz band to a population of no less than 15 million Americans.  This deployment will include areas within a minimum of nine of the nation’s most populous 100 BTAs and at least one BTA less populous than the nation’s 200th most populous BTA.  In these ten BTAs, the deployment will cover at least one-third of each BTA’s population. 
Second, within six years from the effective date of this Order, the merged company will offer service in the 2.5 GHz band to at least 15 million more Americans in areas within a minimum of nine additional BTAs in the 100 most populous BTAs, and at least one additional BTA less populous than the nation’s 200th most populous BTA.  In these additional ten BTAs, the deployment will cover at least one-third of each BTA’s population.  Accordingly, based on the four and six year commitments, within six years of the effective date of this Order applicants will offer service in the 2.5 GHz band to at least 30 million American in at least 20 BTAs, at least two of which are rural communities outside of the nation’s top 200 most populous BTAs.  The deployment in each of the twenty BTAs will cover at least one-third of each BTA’s population. 
We note that, while the service implementation milestones set forth above apply to the Applicants in the context of this proceeding, the issue of what performance requirements should apply to licensees generally in the 2.5 GHz band is the subject of a pending rulemaking.   Applicants will be subject to any performance requirements adopted by the Commission in that rulemaking, in addition to those set forth above.

See Ex parte Letter from Lawrence R. Krevor, Vice President, Government Affairs, Nextel Communications Inc. and Vonya B. McCann, Senior Vice President, Federal External Affairs, Sprint Corporation to Marlene H. Dortch, Secretary, Federal Communications Commission (August 2, 2005)(Applicant’s Buildout Commitment Letter).

See BRS/EBS R&O & FNPRM.