12/17/99 Wireless Today (Pg. Unavail. Online)
1999 WL 6692495
Wireless Today
(c) 1999 Phillips Business Information, Inc.
Friday, December 17, 1999
Vol. 3, Issue: 243
NEXTEL, NEXTWAVE NOTE PROGRESS IN SPECTRUM GAMBITS
Wireless industry analysts are reporting that a federal court has
approved a modified antitrust decree ruling in favor of Nextel
Communications [NXTL] that will allow the Reston, Va.-based SMR giant
to buy additional licenses in the 900 MHz band in the top 25 markets.
A second carrier with licenses spectrum Nextel is seeking to
acquire, NextWave Telecom [NSV], has modified its bankruptcy
reorganization proposal after investors added more than $1.6 billion
to help it build its advanced wireless data network. The investors
include Global Crossing [GBLX], Liberty Media Group [LMG], Texas
Pacific Group and Pacific Capital Group, NextWave announced.
The ruling in the U.S. District Court for the District of
Columbia approved an agreement Nextel reached with the Justice
Department in June this year to own more 900 MHz SMR frequencies in
the top 14 markets in the United States. It apparently clears the way
for Nextel to begin operating on the full range of 900 MHz frequencies
as of Oct. 30, 2000, five years earlier than the carrier's original
consent decree with the government would allow.
Nextel, which is backed by telecom entrepreneur Craig McCaw, sued
the department last February because the parties' 1995 consent
agreement prevented the company from buying 191 licenses in the 900
MHz band from defunct SMR operator Geotek Communications Inc. for $150
million.
SoundView Technology Group today (12/17) advised buying Nextel
shares in part because of the court ruling. Also, SoundView analysts
reported that the carrier's projections for subscriber adds this
quarter appear on track for 425,000 this quarter.
In addition, Nextel's average monthly revenue per subscriber is
sustaining its level as the wireless industry's highest. SoundView
also considers the company to be a leading takeover target for foreign
telecoms.
Hawthorne, N.Y.-based NextWave, which filed for Chapter 11
bankruptcy protection in December 1998, has been trying to convince
the courts to increase the value of spectrum licenses it acquired in
from the FCC in a 1996 auction. The company was unable to continue
payments on the licenses after paying $474 million.
An appeals court in November overturned a bankruptcy-court ruling
that valued the spectrum at $1.02 billion, less than a quarter of the
$4.7 billion NextWave had bid.
NextWave said the bankruptcy court set a confirmation hearing for
Jan. 5 subject to the receipt of either the opinion of the appeals
court or an order from the appeals court allowing confirmation to
proceed.
Nextel has offered more than $6 billion for NextWave's spectrum
as part of a proposed settlement of the matter negotiated with the FCC
and the Justice Department. But that deal was put on hold by a
bankruptcy court ruling.
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