NextWave, Wireless Rivals Resume Talks to Settle Spectrum Allocation
quicken.com
Monday, May 6, 2002 12:35 AM ET
WASHINGTON -- Executives from NextWave Wireless Telecom Inc. and several
large wireless companies have resumed talks aimed at settling their battle over
dozens of valuable spectrum licenses, despite formidable legal, financial and
political hurdles that scuttled a similar attempt last year, Monday's Wall Street
Journal reported.
The talks, which will include a meeting tomorrow in the offices of Sen. Ted Stevens
(R., news, msgs, Alaska), come as the Supreme Court prepares to hear a
government appeal of a lower-court ruling that ordered it to return the spectrum
licenses to NextWave. The Federal Communications Commission will file a brief at
the high court today arguing its case for overturning that decision. Even if the FCC
wins, however, the case would simply move back down to an appeals court,
prolonging the dispute for several more years.
The negotiations offer a glimmer of hope that the wireless spectrum -- the biggest
block available and covering the nation's largest cities -- will finally be put to use.
Gaining access to the spectrum would be a boon for the nation's wireless
companies, which are desperate to find new spectrum to bolster their existing
networks and to roll out advanced new services such as high-speed mobile Internet
access.
"There are a lot of people on Capitol Hill who feel like this has gone on for far too
long already and want to see a deal come back together," said one person close to
the talks. "And all of the companies know what's at stake here."
People familiar with the situation said that company officials are discussing general
ideas for a settlement and don't have a specific deal on the table. But they said that
any agreement would likely differ sharply from last year's proposed settlement.
Under those terms, which collapsed in the face of intense political opposition,
NextWave would have relinquished the spectrum to carriers Verizon Wireless and
other carriers in exchange for almost $6 billion. The carriers would have paid an
additional $10 billion to the government. These people also said that the
involvement of Mr. Stevens was significant because of his close ties to Senate
Commerce Committee Chairman Ernest Hollings (D., news, msgs, S.C.), who
helped derail last year's agreement.
A spokeswoman for Mr. Stevens didn't return calls seeking comment. Officials from
NextWave and the carriers also declined to comment.
Wall Street Journal Staff Reporters Yochi J. Dreazen and Shawn Young
contributed to this report.
Copyright 2002 Dow Jones & Company, Inc.
All Rights Reserved. |
