Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: quidditch who wrote (3660)	11/26/1999 2:01:00 PM
From: quidditch	Respond to of 13582

Post, cont'd: Nextwave/Nextel Q had invested in Nextwave (since written off once Nextwave entered Chap. 11 proceedings) as a means to advance its strategy of CDMA adoption. Nextwave's largest creditor was the FCC in Nextwave's multi-billion obligation to purchase spectrum in FCC's C-bloc auction several years ago. This summer, as Nextwave drew closer to a plan of reorganization that was supported by virtually all of its creditors except the FCC, NXTL entered into closed door discussions with the FCC's office of general counsel to make an offer for Nextwave's defaulted spectrum of about (as I recall $2.1 billion, or roughly twice what Nextwave's plan of reorganization contemplated). This generated a good deal of controversy on the Q threads as to the legality/propriety of the FCC to attempt to block Nextwave's emergence from Ch. 11 through its challenge of the bankruptcy's court's reduction of Nextwave's FCC liability to around $1 billion. Now, it looks as though the appellate court has sided with the FCC. Huge windfall for Nextel, huger brouhaha for the other wirelss carriers that were prevented from bidding in the C-bloc auction (because of size/assets) and who were not given the private access to negotiate with the FCC. I don't see how NXTL alone will be allowed to purchase Nextwave's spectrum. I could see appellate court rejecting bankruptcy court's jurisdiction to alter the terms of the auction (though other bidders got away with this) but don't see how PCS, Bell Atlantic, others could be denied equal access to spectrum otherwise allocated by Congress to small, start-up carriers. Constitutional issues. Depending on the terms of the remand, unless Nextwave cuts a deal, I assume it will appeal to Supreme Court. Steve