The following news summary located at wow-com.com is provided by the Cellular Telecommunications Industry Association:
"FCC's Wireless Telecommunications Bureau Announces Conditional Grant of C-Block Licenses to NextWave Personal Communications, Inc."
WASHINGTON, DC, January 3, 1997 -- The Wireless Telecommunications Bureau (Bureau) announced today that it is granting, on a conditional basis, the licenses won by NextWave during the FCC's C-Block Broadband Personal Communications Services (PCS) auction.
"The arguments advanced in this proceeding raised difficult legal and financial issues," said Bureau Chief Michele Farquhar. "But having reviewed all the evidence, we believe that the decision to award these licenses on a conditional basis best serves the public interest and encourages new competition. At the same time, we are requiring NextWave to fully and completely comply with all legal requirements."
In reviewing NextWave's applications, the Bureau found that certain debt instruments negotiated by NextWave after the commencement of the PCS C-Block auction caused foreign investment in NextWave to exceed the limits on foreign ownership of telecommunications entities set forth in Section 310(b) of the Communications Act. The Bureau directed NextWave to modify its financial structure to cure these deficiencies within six months. The restructuring required by the WTB will ensure that NextWave fully meets all statutory provisions and FCC foreign ownership rules. This decision reflects the WTB's recognition that participants in the spectrum auctions often are involved in ongoing financial transactions that require restructuring of their corporations. For example, pursuant to Section 24.204(f) of the Commission's Rules, certain cellular and broadband PCS licensees are permitted to divest ownership interests in licenses that violate the CMRS spectrum cap. The Bureau's action was taken without prejudice to any other enforcement actions which may be taken with regard to NextWave's compliance with the Commission's rules.
The next step in this process is for NextWave to submit its final down payment of $237,182,402.54 by January 10, 1997. At the same time, those parties who have petitioned to deny also have the ability to appeal this decision to the full Commission after the full text of the Bureau decision is released.
Grant of NextWave's licenses is subject to the following conditions: (1) Six months from the date of these conditional grants, NextWave will submit a report to the Bureau documenting how its ownership and debt structure complies with Section 310(b); (2) Beginning one month from the date of the Public Notice (January 3, 1997, DA 97-12), NextWave will report to the Bureau on a monthly basis regarding the steps it is taking to come into compliance with statutory and regulatory foreign ownership requirements; and (3) NextWave will promptly provide the Bureau with copies of any correspondence to or from the United States Securities and Exchange Commission in connection with the proposed public offering described in its
December 30, 1996 proposal. Failure to meet any on of these conditions will result in automatic cancellation of NextWave's licenses.
A Public Notice was also released on January 3, 1997 (DA 97-12) listing licenses and down payment terms and instructions.
News Media contact: Kara Palamaras at 202/418-0654. Wireless Telecommunications Bureau Contacts: David Furth or Eric Bash at 202/418-0620. |
