FCC Clears Nextel Spectrum Swap

Federal regulators Thursday approved a deal handing Nextel (NXTL Quote) a valuable and controversial swath of wireless spectrum.

The Federal Communications Commission voted unanimously to give Nextel a chunk of 1.9 gigahertz spectrum in exchange for various parcels of 800 megahertz spectrum the wireless carrier had been using. The FCC said the swap will eliminate disruption to fire and police communication systems.

The deal calls for Reston, Va.-based Nextel to set aside $2.5 billion to make the switch. But Verizon Wireless, a big Nextel rival in the fast-growing cell phone business, has opposed the deal, saying rights to the spectrum would garner at least double that sum in an auction. ...