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To: Michael who wrote (38272)	8/19/1999 12:39:00 PM
From: Boplicity	Respond to of 152472

Nextel Communications, a nationwide wireless-telephone company, said it would pay at least $2.1 billion for radio spectrum owned by NextWave Telecom if it can reach agreements with the bankrupt company's creditors and debtors. In a filing with the U.S. Securities and Exchange Commission yesterday, Nextel said it would pay $1.59 billion in cash to resolve claims by the Federal Communications Commission on the licenses. The FCC would also retain $499 million in deposits made by or on behalf of NextWave's debtors. NextWave filed for Chapter 11 bankruptcy protection in June 1998. The spectrum would give Nextel, which is controlled in part by cellular pioneer Craig McCaw, more capacity to handle rapid customer growth and more minutes of use. Nextel would also be able to provide new services, such as wireless Internet access, allowing it to compete better against rivals such as AT&T. Hawthorne, New York-based NextWave bid about $4.8 billion for the spectrum in a 1996 government auction. A judge later reduced the amount to slightly more than $1 billion. So far, NextWave has paid about $500 million. The filing also said that Reston, Virginia-based Nextel could make a payment to NextWave's equity holders, as well as a matching payment to the FCC, the filing said. Last week, Nextel said it got approval from the U.S. Justice Department and FCC to pursue the spectrum.