[Federal Register Volume 64, Number 121 (Thursday, June 24, 1999)]
[Notices]
[Pages 33912-33913]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16120]
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DEPARTMENT OF JUSTICE
Antitrust Division
United States v. Motorola, Inc. and Nextel Communications, Inc.
Notice is hereby given that Nextel Communications, Inc.
(``Nextel'') has moved to modify the Final Judgment entered by this
Court on July 25, 1995. In a stipulation filed with the Court, the
Department of Justice (``Department'') has tentatively consented to
modification of the Judgment, but has reserved the right to withdraw
its consent pending receipt of public comments. On October 27, 1994,
the United States filed a civil antitrust complaint, United States v.
Motorola, Inc. & Nextel Communications, Inc., Civil No. 1:94CV02331
(TFH) (D.D.C.), seeking to enjoin a proposed transaction between Nextel
and Motorola which, it alleged, would violate Section 7 of the Clayton
Act, as amended, 15 U.S.C. Sec. 18. Nextel, then the nation's largest
provider of specialized mobile radio(``SMR''), or dispatch services,
had agreed to acquire most of Motorola's dispatch business. The
complaint alleged that the Nextel/Motorola transaction was likely to
reduce competition substantially in fifteen (15) major cities in the
United States in the market for trunked SMR services.
The Final Judgment, filed contemporaneously with the complaint and
entered by the Court on July 25, 1995, after review pursuant to the
Antitrust Procedures and Penalties Act, 15 U.S.C. Sec. 16(b)-(h),
contained three provisions designed to remedy the anticompetitive
effects of the transaction: (1) Nextel and Motorola were required to
divest themselves of substantially all of their SMR channels in the 900
MHZ radio band and to release, upon request of the license holders,
substantially all the 900 MHZ SMR channels they managed in a number of
large cities; (2) Nextel and Motorola, jointly, were prohibited from
holding or acquiring more than thirty (30) 900 MHZ channels in Boston,
Chicago, Dallas, Houston, Los Angeles, San Francisco, Miami,Orlando,
New York, Philadelphia, Denver, and Washington, DC (the ``Category A
Cities''), and ten (10) 900 MHZ channels in Detroit and Seattle (the
``Category B Cities''); and (3) Nextel and Motorola were required to
sell 42 800 MHZ channels to an independent service provider in Atlanta,
Georgia. These provisions were specifically designed to preserve
competition for trunked SMR customers by limiting for ten years the 900
MHZ spectrum Nextel and Motorola would own and control and by ensuring
that there would be sufficient 900 MHZ capacity to permit the entry of
new trunked SMR service providers.
Many of the 900 MHZ channels divested pursuant to the Final
Judgment were acquired by Geotek Communications, Inc. (``Geotek''),
which acquired additional 900 MHZ channels and used the spectrum to
offer dispatch services in competition with Nextel. However, Geotek's
efforts to enter the dispatch market ultimately failed, and its sizable
blocks of the 900 MHz licenses in metropolitan areas nationwide will be
available for use by some other firm.
On February 16, 1999, Nextel filed a Motion to Vacate Consent
Decree, a motion which, if granted, would have allowed Nextel to
acquire the Geotek licenses, as well as additional 900 MHZ spectrum.
The United States opposed Nextel's request for immediate termination of
the decree. The Court scheduled an evidentiary hearing on Nextel's
motion to vacate the decree to begin on June 14, 1999. Thereafter, on
the eve of that hearing, the United States and Nextel reached agreement
on the terms of a proposed modification of the Final Judgment, and
signed a Stipulation reflecting that agreement, as well as their
agreement that proceedings in connection with Nextel's motion to vacate
the decree should be stayed
[[Page 33913]]
pending final resolution of the motion for proposed modification of the
decree.
The terms of the proposed modification would (1) prohibit Nextel
from acquiring Geotek's 900 MHZ licenses in the Category A and B
Cities; (2) increase the limits on Nextel's and Motorola's 900 MHZ
channels, to permit them to hold or acquire up to one hundred eight
(108) 900 MHZ channels in the Category A Cities, and fifty-four (54)
900 MHZ channels in the Category B Cities; and (3) terminate the
Modified Final Judgment on October 30, 2000. Finally, the proposed
modification would vacate the provision of the Final Judgment that
alters the standard of review for modification as of July 25, 2000.
The Department and Nextel have filed memoranda with the Court
setting forth the reasons why they believe that modification of the
Final Judgment would serve the public interest. Copies of Nextel's
motion to modify, the stipulation containing the Department's consent,
the supporting memoranda, and all additional papers filed with the
Court in connection with this motion will be available for inspection
at the Antitrust Documents Group of the Antitrust Division, U.S.
Department of Justice, Room 215, Liberty Place Building, 325 7th
Street, N.W., Washington, D.C. 20004, and at the Office of the Clerk of
the United States District Court for the District of Columbia. Copies
of these materials may be obtained from the Antitrust Division upon
request and payment of the duplicating fee determined by Department of
Justice regulations.
Interested persons may submit comments regarding the proposed
termination of the Judgment to the Department. Such comments must be
received by the Antitrust Division within thirty (30) days. The
Department will publish in the Federal Register and file with the Court
any comments and responses thereto. Comments should be addressed to
Donald J. Russell, Chief, Telecommunications Task Force, Antitrust
Division, U.S. Department of Justice, 1401 H Street, N.W., Suite 8000,
Washington, D.C. 20005, telephone (202) 514-6381.
Constance K. Robinson,
Director of Operations and Merger Enforcement.
[FR Doc. 99-16120 Filed 6-23-99; 8:45 am]
BILLING CODE 4410-11-M
