VI. Discussion

SDG&E, owns and operates a trunked radio system to communicate with its mobile service personnel throughout its service territory. For the past several years SDG&E and Nextel have experienced radio frequency interference from the other party. To alleviate this mutual interference, Nextel offered to pay for the cost of relocating SDG&E to a non-interfering band. SDG&E and Nextel now propose to exchange radio frequencies and related equipment subject to the Commission's and FCC's approval. As part of this proposed exchange, Nextel will warrant that the 900 MHz channels are free from interference, suitable for the purpose intended, and licensable to SDG&E under FCC rules.

The proposed exchange will enable SDG&E to replace its nine-year-old 800 MHz radio equipment with new 900 MHz equipment provided by Motorola. The new system, an upgrade from SDG&E's current system, will have essentially the same features and functionality as its current system. Although the acquisition, installation, optimization, testing, and acceptance of 25 telecommunications sites is a significant endeavor, SDG&E expects to complete acceptance of the telecommunications sites by November 2002. SDG&E seeks Commission approval of its application until June 30, 2003 to ensure that the Commission's approval does not expire in the event the parties encounter unforeseen project implementation delays.

SDG&E and its customers will benefit from this proposed exchange by receiving new functionally-equivalent equipment for SDG&E's aging equipment and by eliminating interference on SDG&E frequencies. The proposed exchange is in the public interest and should be approved to the extent it complies with the California Environmental Quality Act (CEQA).