Stearns To Propose Partial Solution To NextWave Case
wirelessweek.com
MAY 7, 2002
CQ (5/6, Cohn) reports, "Unresolved issues surrounding bankrupt NextWave Telecom Inc. continue to
dog lawmakers trying to write a comprehensive policy for managing the airwaves." But Rep. Cliff
Stearns, "chairman of the House Energy and Commerce Subcommittee on Commerce, Trade and
Consumer Protection, may have a partial solution."
Industry and congressional sources say Stearns "is working on legislation he may introduce this week
that would allow wireless carriers to walk away from their bids on NextWave's spectrum licenses -- a
combined $ 16 billion. Stearns' measure also would allow full refunds of the companies' deposits with
the Federal Communications Commission (FCC)." Stearns' proposal, if "enacted quickly, would free
the industry's big players to spend billions on a separate June 19 FCC auction of spectrum." Verizon
Wireless Inc.," a joint venture of telecommunications giant Verizon Communications Inc. and United
Kingdom-based Vodafone Group PLC, was the largest bidder at close to $ 9 billion when the FCC put
NextWave's airwaves up for auction. The fate of NextWave's spectrum licenses rests with the
Supreme Court, which could rule later this year on whether the company can keep them." If NextWave
loses, Verizon "and the other bidders will have to pay the FCC in full within 10 days of the ruling to
take possession of the licenses." But "coming up with almost $ 9 billion in 10 days would be difficult,
even for a company with Verizon's deep pockets. Verizon and other bidders, including VoiceStream
Wireless Corp., a unit of German- owned Deutsche Telekom AG, are looking for a way out of their
commitment to NextWave's licenses if an out-of-court settlement can't be reached |
