Verizon files for the rest of the deposit and to have the auction voided.
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Tuesday April 9, 3:47 pm Eastern Time
Reuters Business
Verizon Wireless files for Nextwave down payment
CHICAGO, April 9 (Reuters) - Verizon Wireless, the nation's largest wireless telephone service
provider, filed a petition with the federal court seeking to recover all of the $1.7 billion down
payment it made to acquire disputed wireless licenses, according to a filing obtained on Tuesday.
The petition, filed on Monday with the U.S. Court of Appeals for the District of
Columbia, follows an announcement by the Federal Communications Commission
last week that wireless operators will get back $2.8 billion, or 85 percent, of down
payments they made to the government for bankrupt NextWave Telecom Inc.'s
(Other OTC:NXLC.PK - news) licenses.
Verizon Wireless had bid about $8.5 billion for 67 licenses 14 months ago. It had
paid more than $1.7 billion as a down payment.
The wireless operators that bid on the licenses have not been able to acquire
them because the appeals court ruled last year that they belonged to NextWave,
which is in bankruptcy protection.
The FCC tried to take the licenses away from NextWave when the company
failed to pay for them on time but the court intervened. The U.S. Supreme Court
has agreed to hear the dispute, which could prolong the battle over the airwaves
for at least a year.
As a result, Verizon Wireless, a joint venture between Verizon Communications (NYSE:VZ - news) and Vodafone Group Plc (VOD.L), has said it wanted to end its participation in the government's 2001 resale of the disputed licenses.
Verizon Wireless in the filing said it ``seeks relief on the ground that the FCC has improperly decided its own contract rights.''
It claimed the FCC violated the terms of its contract with Verizon Wireless, its constitutional rights, and the decision of the appeals court siding with NextWave by refusing to return all of its down payment.
Verizon Wireless on Friday brought its case to the Court of Federal Claims, which handles contract disputes with the federal government, asking it to agree that the auction is void and to require the FCC to return all of its down payment as well as $100 million in unpaid interest. |
