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Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: JF Quinnelly who wrote (9486)	11/12/1999 9:14:00 PM
From: Rono	Read Replies (2) \| Respond to of 10227

From the November 15, 1999, issue of Wireless Week C-Block Proposal Favors Nextel By Caron Carlson WASHINGTON--The wireless industry was assured in recent months that if the FCC takes back NextWave Personal Communications Inc.'s licenses, it would determine future assignment in an open process fair to all carriers. But last week, advocates for reclaiming the spectrum lobbied behind closed doors for a legislative outcome that appears to favor Nextel Communications Inc. After failing several times to achieve spectrum recovery authority for the FCC through appropriations and bankruptcy legislation, advocates attempted to attach an amendment to the budget bill, which was under heavy negotiations as Congress tried to wrap up its work for the session. A draft of the amendment obtained by Wireless Week late last week appeared to address NextWave's licenses alone. It would require the bankruptcy court to auction C-Block and F-Block licenses that are part of a confirmed plan of reorganization for a minimum of $3.5 billion within 45 days after confirmation. It would direct the FCC to transfer the licenses to the highest bidder within 60 days after the auction and forbid the commission from considering petitions to deny or any other objections to the transfer. It would also prevent the transfer from being subject to administrative or judicial review. The amendment appears to facilitate the type of agreement FCC General Counsel Christopher Wright signed with Nextel in August. It would expedite license transfer by overriding the "designated entity" rule that restricts the C-Block licenses to small businesses. Under existing rules, the FCC is not able to transfer NextWave's licenses to Nextel or any other large carrier without granting a waiver, and that process could take months or years--something secured creditors do not find attractive. If enacted, the provision for a speedy auction with little advance notice would favor companies with large cash reserves-- something Nextel has been active in achieving in the past month. The amendment does not address the spectrum cap rule, which would be key in disqualifying many potential Nextel rivals. Although the House of Representatives rejected FCC spectrum recovery provisions in previous negotiations, the urgency of budget legislation could turn the provision into a bargaining chip.