Wednesday March 21, 6:46 pm Eastern Time
Verizon Wireless seeks delay paying for PCS licenses
By Jeremy Pelofsky
LAS VEGAS, March 21 (Reuters) - Verizon Wireless, the nation's biggest mobile telephone company, is seeking to
delay forking over $8.8 billion to the federal government for wireless licenses it won in January until legal challenges
have been resolved, the company's general counsel said on Wednesday.
The Federal Communications Commission auctioned off 422 licenses this winter raising about $16.9 billion, including
90 licenses repossessed from NextWave Telecom Inc. after that company was unable to make timely payments.
NextWave argued last week in the U.S. Court of Appeals for the District of Columbia that the repossession of the
licenses by the FCC violated U.S. bankruptcy law and sought the return of the licenses covering lucrative areas like
New York City.
Verizon Wireless, a joint venture between Verizon Communications (NYSE:VZ - news) and Vodafone Group Plc
(quote from Yahoo! UK & Ireland: VOD.L) (NYSE:VOD - news), won 113 licenses covering New York City,
Boston and Los Angeles and is expected to use the airwaves to improve and expand services.
``We are reluctant to pay our $8 billion while the matter is still pending before the D.C. circuit,'' Verizon Wireless
General Counsel Mark Tuller told Reuters during the Cellular Telecommunications & Internet Association annual
meeting.
``On the practical basis, we are willing, in fact, wish to have it deferred until after the court of appeals rules,'' he said.
The FCC has said it would return the licenses to NextWave if the company was successful in its legal challenge.
The agency has not yet set a date for when final payments are due although down payments were due last month and
an agency spokeswoman was not immediately available for comment. NextWave has also petitioned the agency to
delay issuing the licenses until its legal challenges have been completed.
The appeals court heard oral arguments last week on NextWave's attempt to reclaim the valuable wireless licenses.
But it remains uncertain when the court will issue its decision and the ruling could be appealed to the U.S. Supreme
Court.
``We completely disagree with what NextWave had to say as a legal matter,'' Tuller said. ``When the court of appeals
has ruled all of the parties will have a better picture of what's going on.''
The sale of 422 C and F block licenses ended Jan. 26 breaking the agency's previous auction record set in 1996 when
it netted $9.2 billion for similar PCS licenses. Wireless firms are hungry for new spectrum so they can launch new
services and catch up with developments overseas.
``It is good spectrum ...I believe there is a very strong public interest in finalizing this auction and putting this
spectrum to good use,'' he said. |
