Nextel-FCC Pact Could Be
Headed For Hearings
By Caron Carlson
WASHINGTON--Last week's chapter in the ongoing attempt to shed light on the
pact secretly signed by the FCC and Nextel Communications Inc. in August
featured a volley of correspondence among Congress, the Department of
Justice, Nextel, the FCC and CTIA.
The letters ultimately could prove no more than sound and fury, evaporating
in time like previous congressional inquiries regarding backroom FCC deals.
Or they could lead to hearings and more formal investigation into the FCC's
handling of controversial spectrum assignments.
In a Sept. 14 letter to Janet Reno, House Commerce Committee Chairman Tom
Bliley, R-Va., said he was perplexed by the Justice Department's agreement
to support Nextel's reorganization proposal for spectrum held by bankrupt
NextWave Personal Communications Inc., particularly because Nextel was not a
party in interest. The agreement "could easily be seen as an effort to aid
conduct by Nextel that could violate bankruptcy rules ..." Bliley said,
detailing a list of questions about the process he wants the department to
answer.
In a related letter to Dan Akerson, chairman of Nextel's board of directors,
Bliley asked who initiated the negotiations leading to the agreement with
FCC General Counsel Christopher Wright and requested copies of all records
relating to it.
Akerson left Nextel's day-to-day operations in July to become co-chairman of
Craig McCaw's Eagle River Investments, and Tim Donohue moved into Nextel's
CEO position. Akerson is expected to stay on as Nextel chairman until
January, when McCaw plans to take over.
The letters are a preliminary step in the Commerce Committee's
investigation. Whether hearings are held depends on the responses received,
a spokesman for committee said.
On a separate front Sept. 14, FCC Chairman William Kennard answered CTIA
President Tom Wheeler's letter of two weeks ago, although letters sent
earlier by Vodafone AirTouch plc, Southwestern Bell Wireless and the law
firm of Wilkinson Barker Knauer LLP linger without responses.
The Nextel agreement would come to pass only if "a number of important
contingencies occur," Kennard wrote. The bankruptcy court would have to give
Nextel the right to offer the proposal, competing bids would have to be
permitted, and transfer applications and ownership waivers would be subject
to public comment.
Wheeler summarily wrote back to Kennard, repeating previously expressed
concerns about equal regulatory treatment for all companies.
In his first letter, Wheeler had asked for specific procedures companies
interested in countering Nextel's plan could follow.
Instead, he received a statement from Kennard that the bankruptcy procedure
would assure an open and fair process--a perplexing response given the
commission's objection to the court's jurisdiction over the spectrum.
Kennard pointed out that the FCC's appeal of NextWave's bankruptcy rulings
is being heard and, at the same time, Congress is considering legislation
that would direct licenses held by bankrupt companies to revert directly to
the FCC.
While the letters were flying back and forth across Washington, the 2nd U.S.
Court of Appeals in New York reviewed briefs filed by the FCC and NextWave
regarding the bankruptcy procedure. |
