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To: ftth who started this subject	3/4/2002 10:01:08 PM
From: Raymond Duray	Read Replies (1) of 46821

U.S. high court to decide NextWave airwaves dispute totaltele.com Mobile & Satellite U.S. high court to decide NextWave airwaves dispute By Jeremy Pelofsky, Reuters 04 March 2002 The U.S. Supreme Court said on Monday it would step into a four-year legal battle and decide whether the government can repossess valuable wireless licenses from bankrupt NextWave Telecom Inc., a move that could push the two sides back into settlement talks. The Federal Communications Commission (FCC) tried to take back the licenses after NextWave entered bankruptcy protection, as well as resell them to other carriers like Verizon Wireless and partners of AT&T Wireless Services Inc. and Cingular Wireless. But a federal appeals court ruled last June the government violated bankruptcy law when it repossessed the licenses because of nonpayment and ordered the airwaves back to the company. The high court's action could shake up the wireless industry. If the justices rule that the FCC can repossess the licenses, Verizon Wireless and others will be on the hook for $15.85 billion, which they agreed to pay for the licenses back in 2001. But if the justices agree with the lower court that the FCC could not take the licenses back solely for nonpayment, it could close off the chances of the established carriers getting the airwaves they say they need to expand and improve service. Oral arguments will likely take place in the court's term that begins in October, with a decision expected in early 2003. Shares of NextWave shed more than half their value on the high court's decision to hear the case, falling to $2.65 from their $5.90 open on the pink sheets market. NextWave, which plans to act as a wholesaler providing airtime to content providers and rival mobile telephone carriers, has already begun activating its network in 60 markets and plans to have full commercial service launched later this year. The company argued that the justices should not hear the case because the appeals court ruling properly interpreted bankruptcy law, the decision did not conflict with other decisions and the FCC will not likely face the situation again since it no longer allows instalment payments. The FCC tried to broker a settlement to preserve the 2001 sale of the NextWave licenses to carriers like Verizon Wireless and VoiceStream Wireless, but that fell apart when Congress recessed last year without passing the necessary legislation to authorize the deal. The various parties walked away from the settlement at the beginning of the year. But with the Supreme Court agreeing to decide the case, analysts predicted that could spark a new effort at settling the dispute. The last proposed settlement entailed NextWave giving up the rights to the disputed licenses in exchange for about $5.85 billion and the government netting $10 billion. The funds would come from the bids by the established carriers back in 2001.

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