NextWave Settlement Talks Continue
wirelessweek.com
BY MARK ROCKWELL
MAY 13, 2002
WIRELESS WEEK
2002, REED BUSINESS INFORMATION, A DIVISION OF REED ELSEVIER INC. ALL RIGHTS RESERVED.
WASHINGTON Settlement talks among the participants in the re-auction of NextWave Telecom Inc.'s
spectrum heated up, or at least twitched a little, last week.
According to press reports, Sen. Ted Stevens of Alaska, ranking Republican on the Senate
Appropriations Committee, was behind an attempt to reach a settlement among the bidders, although
he may not have actively participated. Participants reportedly included Verizon Wireless, Alaska Native
Wireless and others.
Sources also said, however, that the significance of the discussions was overblown. The bidders, in
fact, have been making the rounds on Capitol Hill for months, talking about a settlement but not
actively pursuing it. "The meeting in Stevens' office wasn't unusual," one source said. "It may, however,
be the first time most of the parties have all been in one room at the same time."
In related action, House Commerce, Trade and Consumer Protection Subcommittee Chairman Cliff
Stearns, R-Fla., said he is considering introducing legislation to relieve NextWave re-auction bidders of
their debts from the auction, forcing the FCC to refund all of the down payments made and allowing
those companies to relinquish their licenses without further obligation.
The bidders already have received refunds on 85 percent of the billions of dollars in down payments
submitted to the FCC following the January 2001 re-auction. If the Supreme Court rules the FCC acted
lawfully in reclaiming and re-auctioning NextWave's licenses after the carrier declared bankruptcy, the
bidders would be liable for the full amount of their bids. The FCC filed its arguments with the court last
week, arguing that bankruptcy protection doesn't extend to NextWave's bid for the spectrum made in
1996. The FCC argued the bid was part of a regulatory proceeding and not a debt as defined by the
bankruptcy code. |
