Re the question of review by the Supreme Court of finding for NW as posted on AOL QUALCOMM message board by SROURA.
>From: MOENMAC
>Would appreciate...opinions...on the chances that the Supreme Court will review this case.
>From: SROURA
Here goes, Mo.
When NextWave lost a decision in the Circuit Court, in Nov. 2000 it requested that the Supreme Court take the case and the Court refused: Wireless News:
Supreme Court Delivers Second Setback to NextWave
This article stated that:
The justices, without comment, declined to hear NextWave’s argument that a decision by the FCC to reopen bidding on the frequencies, backed by an appeals court ruling, usurped the power of federal bankruptcy judges.
Now that the shoe is on the other foot, I doubt if the Supreme Court will grant certiorari to the FCC.
Supreme Court Delivers Second Setback to NextWave
By Los Angeles Newsroom
Wireless NewsFactor
November 28, 2000
The United States Supreme Court refused to hear an appeal Monday by bankrupted wireless provider NextWave Telecom, Inc., forcing the company to relinquish its formerly held wireless frequencies.
The move opens the door for the U.S. Federal Communications Commission (FCC) to auction off the air space -- valued at US$10 billion -- to competing wireless communications providers.
The justices, without comment, declined to hear NextWave’s argument that a decision by the FCC to reopen bidding on the frequencies, backed by an appeals court ruling, usurped the power of federal bankruptcy judges. Among those expected to participate in the December 12th auction are Verizon Wireless, Inc., Nextel Communications, Inc., SBC Communications, Inc. and AT&T Wireless Group.
Bankruptcy Busts Bid
Founded in 1995, NextWave made a winning bid of $4.74 billion for the frequencies in question in 1996, but later defaulted on it and sought bankruptcy protection in 1998, at which time the FCC reclaimed the air space. The company's competitors have accused NextWave of squatting on the spectrum ever since.
In December 1999, NextWave received a cash infusion of $1.6 billion from investors including Global Crossing Ltd., Liberty Media Group, Pacific Capital Group and Texas Pacific Group, enabling the company to modify its reorganization plan. Industry analysts say NextWave now has the capital to make good on its bid.
Twice Rebuffed
Monday’s action, however, marks the second time NextWave has been rebuffed by the Supreme Court, which rejected a similar appeal by the company in October. At issue is a decision by a New York appellate court that said a bankruptcy reorganization would infringe upon the FCC's authority.
Meanwhile, the FCC and the U.S. Department of Justice argue that the bankruptcy judge lacks the power to circumvent an FCC regulation requiring companies to meet the terms of their bids when such bids are made.
Court Battles to Continue
NextWave has vowed to continue its fight in the appellate courts. In a response to the Monday's decision, the company expressed "disappointment" that the Supreme Court did not address the contrasting earlier opinions between the 2nd and 5th Circuit U.S. Courts of Appeal.
The New York-based company also said that it will press on with its case against the FCC despite the Supreme Court ruling. |
