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To: Rono who wrote (9611)	6/1/2000 8:57:00 PM
From: Rono	Read Replies (1) \| Respond to of 10227

Dow Jones Newswires FCC May Allow Large Wireless Companies In July Auction Dow Jones Newswires By Mark Wigfield WASHINGTON -- The Federal Communications Commission has proposed changing the rules for an auction of licenses for wireless spectrum. Technically a re-auction of licenses that were reserved for small entrepreneurs, the new auction will allow large wireless companies like SBC Communications Inc. (SBC) and Nextel Communications Inc. (NXTL) to bid. Among the licenses that would be up for auction are those won by NextWave Telecom Inc. (X.NWV), which is currently fighting to hold onto its licenses in a bitter bankruptcy dispute with the FCC. The auction is scheduled for July, but is likely to be delayed. Among other reasons, NextWave is challenging the FCC's authority to reclaim the bankrupt companies' licenses for re-auction. (Corrected 06:28 PM) The Federal Communications Commission has proposed changing the rules for an auction of licenses for wireless spectrum. (In a story published at 6:14 p.m. EDT, it was incorrectly reported that the FCC had already changed the rules.) Under the proposal, 30 megahertz of spectrum up for auction in markets of more than 2.5 million people would be split into three, 10 MHz chunks. Two of those chunks would be open to any bidder, while one would be closed to all but entrepreneurs, defined entities with gross revenue of less than $125 million and $500 million in assets. In smaller markets, two blocks would be reserved for entrepreneurs, and one for large carriers. An FCC official said demand for spectrum in large markets by large carriers was greater, and that entrepreneurs have been most successful in smaller markets. The auction is "vitally important," FCC Chairman William Kennard said, because it puts fallow spectrum into the marketplace for use by proliferating wireless handheld Internet devices and other uses. The proposals "are carefully balanced" to maximize the opportunity for small and large entrepreneurs, he said. The FCC doesn't plan to revise rules restricting any one carrier to 45 MHz of spectrum in a given market. In a dissent, commissioner Michael Powell said he was "dismayed" that the notice rejected the idea out of hand. Changes in the market require "the immediate re-examination of this artificial barrier," he said. However, the FCC official said the cap was retained for solid antitrust reasons. He added that few carriers are currently bumping up against the cap, and will be able to bid in the auction. He predicted the auction will occur sometime this fall. -Mark Wigfield, Dow Jones Newswires; 202-828-3397; mark.wigfield@dowjones.com