NextWave inks deal with Lucent for 3G network
By Jeremy Pelofsky
WASHINGTON, July 2 (Reuters) - NextWave Telecom Inc. <NXLC.PK> said on Monday Lucent Technologies Inc. <LU.N> had been hired to begin building its advanced digital, mobile wireless network, signaling the company would use coveted licenses a court handed back last month.
The initial phase for the project will include building a CDMA full-scale voice and data service to be offered in Detroit and Madison, Wisconsin and a data-only network in 93 other markets over the next 10 months, NextWave said.
"We are striving to be the first to market with this innovative broadband wireless service," said NextWave Chief Executive Officer and Chairman Allen Salmasi. The company will also make its network capacity available to other wireless carriers, he said.
With Lucent's support under the agreement, "we will begin to build one of the most advanced IP-based networks in the world, one that will help maintain America's leadership in broadband wireless technology," Salmasi said.
The Hawthorne, N.Y.-based company declined to disclose the terms of the all-cash deal with Lucent.
NextWave won new life last month when a U.S. appeals court ruled that the Federal Communications Commission violated bankruptcy laws when it repossessed wireless telephone licenses from the company because of its failure to make timely payments.
While the FCC could appeal that decision, NextWave has said it will move ahead with launching an always-on mobile Internet service -- one type of so-called third generation (3G) service -- even though the federal government tried to resell the airwaves to other companies.
"We have ample funds on hand to finance this initial construction effort," said Frank Cassou, NextWave general counsel and executive vice president. "We expect to file a plan of reorganization shortly, and we anticipate emerging from bankruptcy soon thereafter."
NextWave also said that the spectrum was being cleared and the design work had been completed while tower sites had been identified and were easily accessible.
The deal comes despite recent talk of a settlement between NextWave and the companies that won in the re-auction of the NextWave licenses, Verizon Wireless <VOD.L> <VZ.N>, Cingular Wireless <BLS.N> <SBC.N> and others.
Shares of NextWave closed up 25 cents to $9 on the Pink Sheets. Lucent shares closed up 47 cents to $6.67 on the New York Stock Exchange.
18:18 07-02-01 |
