The FCC announced in 2004 that it had agreed upon a rebanding plan to consolidate public safety frequencies and those used by some other operators, such as utilities, in the lower part of the 800 MHz band, while moving some of the 800 MHz channels acquired by Nextel, and some other commercial users, to the higher end of the band. The conversion process was scheduled to be completed by June 26, 2008. Disputes related to cost reimbursement have delayed the transition, however. The FCC has ruled to establish December 9, 2013, as the final date for resolving all cost-sharing obligations. These provisions, negotiated with Nextel, apply to Sprint Nextel effective as of the date of the merger. Move channels designated for interoperability to the lower end of the band, close to the planned public safety band at 700 MHz. Require Nextel to make an "anti-windfall payment" to the Treasury at the conclusion of the relocation process that will equal the difference between the $4.9 billion valuation and the cumulative credits. Costs of Rebanding

The FCC rebanding plan required that Sprint Nextel pledge $2.5 billion in cash and letters of credit to cover relocation costs for public safety. The difference between the values of the spectrum Sprint Nextel is relinquishing and of the new spectrum it is receiving is an increase—a potential windfall—of approximately $2.8 billion. This is the value, before specified relocation costs, that Sprint Nextel might be obligated to pay the U.S. Treasury. If the costs exceed $2.8 billion, the Treasury receives nothing. Because the deadline for the completion of the rebanding has been extended several times, the deadline for the true-up has also been extended. The TA must file regular reports with the FCC with its recommendations as to whether it has sufficient information on the costs of rebanding to calculate the anti-windfall payment—if any—that Sprint Nextel will be obligated to pay, or whether the deadline must be postponed again. Transition Administrator

The Transition Administrator (TA) is an independent organization set up in accordance with FCC rules. Disagreements about the implementation of the plan that the TA cannot resolve on its own or through mediation will in most cases be referred to the FCC.
In mid-2005, wireless communications managers commenced the process of moving selected public safety radio channels to new frequencies. This step was part of a rebanding plan to mitigate persistent problems with interference to public safety radio communications. The majority of documented incidents of interference was attributed to the network built by Nextel Communications, Inc (now Sprint Nextel). As part of an agreement originally made between Nextel and the Federal Communications Commission (FCC), some public safety wireless users have moved or will move to new frequencies, with the wireless company paying all or part of the cost. The rebanding agreement was not affected by the merger between Nextel and Sprint Corporation. In return for the expenditures, and reflecting the value of spectrum that Sprint Nextel relinquished as part of the band reconfiguration, the FCC assigned new spectrum licenses to the wireless company. The FCC set the "windfall" value of the new licenses, after allowing for the value of the licenses being relinquished, at $2.8 billion. The costs that Sprint Nextel incurs in the rebanding process are being applied to the $2.8 billion windfall. If the total is less than $2.8 billion, Sprint Nextel will be required to make an "anti-windfall" payment to the U.S. Treasury for the difference. If the costs exceed $2.8 billion, Sprint Nextel is obligated to pay them without any new concessions from the FCC.
The rebanding plan is being implemented by the 800 MHz Transition Administrator (TA), created by the FCC for this purpose. The TA's ongoing responsibilities are to set priorities, establish schedules, and oversee reimbursement to parties for eligible expenses associated with relocation. Disagreements about the implementation of the plan that the TA cannot resolve on its own or through mediation are in most cases referred to the FCC. From the outset, there have been debates about the transition plan, such as maintaining interoperability, scheduling, and reimbursement for costs incurred. As the band reconfiguration proceeds, debates have often become protracted negotiations—and even litigatious disputes—slowing the transition process.
The original plan set a deadline of June 2008 to complete the transition, with the calculation—or true-up—of the anti-windfall payment to occur six months later. The deadline has been extended several times while issues regarding the transition process were resolved. Consequently, the deadline for the true-up has also been extended, most recently until December 9, 2013.