The Verizon CEO said the telecom would challenge any attempt by the top court to return the licenses to the FCC for fear that the government would force the companies to pay the prices they bid a year ago.
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Supreme Court takes on NextWave case
by Ron Orol in Washington and Leon Lazaroff in Orlando, Fla.,
Posted 06:56 PM EST, Mar-4-2002
The justices agreed March 4 to review the bankrupt company's case, with a decision expected to help resolve whether federal bankruptcy law or government agency rulings have legal primacy.
"The court is going to be looking at the issue of who has jurisdiction over the case — the FCC or bankruptcy law," said Frank Marsala, wireless analyst at Robertson Stephens Inc. in New York.
But observers say a ruling is unlikely until 2003, and litigation in the dispute could drag on for years. For one, the top court ends oral arguments for its current session in May, leaving little time to rule on NextWave, said Stephen Wermiel, professor of government at American University in Washington.
The justices also are likely to remand the case to an appeals court for a final decision, propelling the conflict into 2004, Marsala said.
Hawthorne, N.Y.-based NextWave purchased wireless spectrum licenses for $4.7 billion in a 1996 auction, but went bankrupt ...
Susan Lynner, an analyst at Prudential Securities Inc. in Washington, said that the Supreme Court would not decide on the dispute until after the Jan. 1, 2003, date set by the FCC for abolishing restrictions on ownership of mobile telecom airwaves ... elimination of spectrum caps will likely lead to rampant consolidation in the wireless industry ...
"The Supreme Court case is a factor of uncertainty that wireless telecom companies will have to deal with when making decisions on who to partner with after the [spectrum] restrictions are removed," Lynner said. "Companies like Verizon are not likely to go ahead with acquisitions until after the NextWave issue is resolved."
Meanwhile, a proposed NextWave settlement between the FCC, NextWave and the Department of Justice is now even more unlikely...
For Verizon, much rides on the Supreme Court's decision ... lost its attempt to force the federal government to return $1.7 billion the company paid last year as a down payment ...
The Verizon CEO said the telecom would challenge any attempt by the top court to return the licenses to the FCC for fear that the government would force the companies to pay the prices they bid a year ago.
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