Timing lousy for emergency communications plan
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A government plan to build a nationwide emergency communications network using private money and public airwaves flopped earlier this year when investors stayed away in droves. On Thursday, the Federal Communications Commission was trying again, this time in the midst of a full-blown economic crisis. The commission was scheduled to vote on a tentative plan that makes the idea more palatable to potential investors -- perhaps too palatable, some say. The proposed network would be used by police, firefighters and other emergency crews responding to disasters or terrorist attacks. The draft rules would allow the private bidder to charge public safety organizations $48.50 a month, per user, which could be "cost prohibitive" to smaller and rural public safety users, according to Jessica Zufolo, a telecommunications analyst for Medley Global Advisors. Potential bidders include AT&T Inc. and Verizon Wireless, the nation's top two wireless providers. The companies have paid billions of dollars for similar spectrum. Adding a public safety component to their networks would be easier for them than for a company starting from scratch. Adding to the sense of uncertainty is the current financial climate. With Congress considering a $700 billion bailout of the financial industry, banks are not in a position to lend billions for a largely speculative undertaking.
