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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 174.01

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Nov 14 9:30 AM EST

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To: Art Bechhoefer who wrote (19893)	3/4/2002 6:50:21 PM
From: pcstel	Read Replies (6) of 196654

Art: The whole mess is the fault of the FCC, which failed to write provisions into the bidding that would automatically return unpaid spectrum to the FCC (with a penalty, perhaps). This was an Auction set aside for "Entrepreneurial" bidding. That means "No Big Business", No Foreign Ownership interests above a certain threshold as consistent with FCC rules at the time. Auction 5 C Block provided "time payment options", all of which provided safeguards that guaranteed the FCC rights to recapture spectrum in which payments were not made! And the FCC did exactly that is several cases. These are licenses, they are not Nextwave's property. They are property of the US Govt. and leased to the Auction winners, as long as the covenants are upheld. If you lease a car, and file Bankruptcy. Do you get to keep the car that you leased? Of course not. It was never your car to begin with. The Supreme Court will simply clarify that these are simply regulatory approvals that are leased to the Auciton Winners! They are not owned by the winners, they are simply leased. When one license holder sells one of their authorities to another company. They do so using FCC Form 603. Question 3a states. 3a) Is this a pro forma assignment of authorization or transfer of control? They apply for approval of the FCC to transfer the assignment of authorization from one party to the next. Why, because they are simply leasing the right to use the spectrum from it's owner. The US Govt. And it's owner can decide if it will allow another party to lease it's property, or not. Regulator approvals are not the property of Nextwave. Nextwave violated the covenants surrounding their authority to use these spectrum grants, by not paying for them, and filing Bankruptcy. I think this will be very easy for the Supreme Court to decide! PCSTEL

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