Nextel is granted approval for airwaves swap by FCC to end the interference with police, fired and rescue communications.

The Federal Communications Commission voted 5-0 for a plan in which Nextel would receive airwaves in the 1.9 Gigahertz band in exchange for returning other airwaves, including in the 800 Megahertz band where public safety groups operate.

The FCC determined that the airwaves Nextel would receive were worth $4.8 billion and the spectrum the No. 6 U.S. carrier is giving up is worth about $1.6 billion.  Of course, Nextel is expected to cover all costs related to the swap.

Verizon Wireless isn't taking this news lightly.  The company is challenging FCC's decision, arguing that the airwaves in the more highly prized 1.9Ghz should be auctioned off to the highest bidder.  They've already offered to pay at least $5 billion.

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