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To: Bux who wrote (2863)	11/1/1999 1:39:00 PM
From: quidditch	Respond to of 13582

Bux, among others, FCC rules classified the bidders for the spectrum that Nextwave "purchased" as "eligible entities", which, in effect meant that they were a class of smaller entities without ties to established carriers, with accompanying assets and revenue tests. Per the FCC auction rules, it was an invitation to problems in financing the purchase price for the auctioned spectrum. I'm sure there are other elements of the FCC rules that are implicated here. In addition, there are at least two constitutional issues here: i) Nextwave can argue bill of attainder-like issues, insofar as other purchasers of spectrum in the series (C-bloc?) in which Nextwave participated also fell afoul of financing problems, went Chap. 11 and still came away with spectrum intact, according to my understanding of some of the history here; ii) Congress adopted the statutory scheme under which the spectrum was auctioned and FCC implemented them, issued the regulations. For FCC to unilaterally change the terms upon which an entity may acquire spectrum, without the consent and participation of Wave, violates separation of powers principles. Steve