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Technology Stocks : Nextwave Telecom Inc. -- Ignore unavailable to you. Want to Upgrade?

To: JohnG who wrote (573)	11/16/2001 4:19:30 PM
From: Jon Koplik	Respond to of 1088

Leap Wireless NOT mentioned in NextWave settlement news release (as always ...) Here is some news from Leap : (Yes, I am aware this is long, and possibly considered boring). Title: Leap Supports FCC Settlement of Auction # 35 Date: 11/16/2001 SAN DIEGO, Nov 16, 2001 /PRNewswire via COMTEX/ -- - Leap Expects to Become Country's Seventh Largest Wireless Carrier - Leap Wireless International, Inc. (Nasdaq: LWIN), an innovator of wireless communications services, today welcomed the settlement reached between various parties including the Federal Communications Commission (FCC), NextWave Telecom, Inc. and Leap and other wireless carriers regarding the wireless operating licenses auctioned by the FCC in Auction #35, which concluded in January 2001. As part of the settlement, Leap expects to take ownership in mid-2002 of the 22 licenses covering 23.8 million potential customers (2001 POPs) for which it was the high bidder, subject to legislative action, approval by the U.S. Bankruptcy Court and FCC approval of the license transfers. "Upon satisfaction of the conditions and taking possession of the licenses, Leap expects to be the seventh largest wireless carrier in the country based on licenses covering 76.8 million potential customers (2001 POPs) in 36 states," said Harvey P. White, Leap's chairman and CEO. "As an active participant in settlement talks, Leap has been a strong proponent of getting the licenses into the hands of successful bidders in the auction, including Leap. We are pleased that this long-standing issue has finally been resolved." Leap bid the lowest average price per POP among the ten most active bidders in the auction, with the company's high bids totaling approximately $350 million, or $14.73 per POP (2001 POPs). Leap already paid the FCC a deposit of $85 million prior to the auction. Leap expects to fund the remaining $265 million, which it expects to be due in mid-2002, through its current vendor financing facilities, a $125 million senior secured credit facility from QUALCOMM Incorporated, and existing cash. While demand for Cricket's compelling value proposition remains strong, Leap intends to grow its business prudently given the current state of the capital markets. The licenses need to be built out five years after they are granted to the company by the FCC, which gives Leap flexibility to decide when to expand its business. Leap currently offers Cricket, its flat-rate, all-you-can-talk local wireless service, in 30 markets in 17 states throughout the country, and had more than 724,000 customers as of Sept. 30, 2001, the end of its third fiscal quarter. "We are growing our business market by market, and that flexibility gives us an important advantage when it comes to financing growth," White said. "We expect to seek additional financial resources to support the further expansion of our business when terms and conditions appear favorable to the Company and its stockholders. We also intend to continue pursuing opportunities to maximize the value of our current spectrum portfolio." The largest markets that Leap expects to acquire as a result of the settlement are Columbus, Ohio; Providence, R.I.; and Houston and San Antonio, Tex. The complete list of new licenses includes: New London, Conn.; Jacksonville and Melbourne, Fla.; Columbus and Indianapolis, Ind.; Lexington and Louisville, Ky.; Worcester, Mass.; Asheville, N.C.; Las Cruces, N.M.; Albany and Poughkeepsie, N.Y.; Scranton, Pa.; and Austin, Brownsville, Bryan, El Paso and McAllen, Tex. Copyright (C) 2001 PR Newswire. All rights reserved.

To: JohnG who wrote (573)	11/17/2001 10:39:18 AM
From: Jon Koplik	Respond to of 1088

WSJ article on NextWave settlement. (This is actually from AP, even though it was in the WSJ). November 16, 2001 Tech Center NextWave, FCC Settle Dispute Over Wireless Spectrum Licenses Associated Press WASHINGTON -- NextWave Telecom Inc. has agreed to sell a large slice of the nation's wireless spectrum in a deal announced Friday by the federal government that ends its long dispute with the bankrupt company. The airwaves will be purchased by the nation's biggest mobile-telephone carriers, allowing them to improve service in dozens of major U.S. markets. NextWave won the wireless airwaves in a 1996 government auction, but paid just $500 million of its $4.7 billion bid before declaring bankruptcy. The Federal Communications Commission then seized and reauctioned the licenses, bringing $15.8 billion for the same chunk of spectrum from major telecommunications companies, including Verizon Wireless, Cingular Wireless, VoiceStream Wireless and AT&T Wireless Services Inc. NextWave sued the FCC and, in July, a federal appeals court ruled the government was wrong to resell the licenses and ordered them returned. The FCC has asked the Supreme Court to overturn that decision. But after weeks of intense and complex negotiations, the FCC, NextWave and the winners of the second auction have reached a $16 billion deal to settle that court dispute. "At bottom it is a deal that serves the public interest, for it will get licenses out from under litigation and into the market, where the public will benefit from improved service quality, enhanced coverage and greater reliability," FCC Chairman Michael Powell said in a statement announcing the settlement. Officials at NextWave didn't immediately return a call for comment. Under the deal, the other carriers would pay the government essentially what they bid in the second auction for the right to take control of NextWave's licenses, Verizon spokesman Jeffrey Nelson said. That will allow them to continue their plans to fill gaps in wireless coverage in dozens of lucrative but overcrowded markets such as New York, Los Angeles, Chicago, Seattle, San Francisco, Washington and Philadelphia. Verizon would get by far the largest share of licenses, followed by AT&T Wireless. The government would transfer about $9.6 billion of the money to NextWave. After paying taxes and other fees, investors in the Hawthorne, N.Y.-based company that never built a network or offered service would walk away with a little over $5 billion, Mr. Nelson said. The government, which would drop its Supreme Court challenge, would net about $10 billion for the U.S. treasury -- about $6 billion less than if the second auction were upheld, Mr. Powell said. With all the parties aiming to minimize the risk of losing money in the event of defaults or other legal challenges, a final deal foundered over who would be paid first and how the money and licenses would be transferred among the entities. As part of the deal, Congress will be asked to pass legislation that would reinforce the agreement by funneling all future legal challenges to a federal appeals court in Washington, Mr. Powell said. Congress also must give the FCC authority to make the payment to NextWave, said a source close to the negotiations. Mr. Powell said required approval from Justice Department is expected. The deal also may need approval from a New York bankruptcy judge overseeing NextWave's reorganization plan. Copyright © 2001 Associated Press Copyright © 2001 Dow Jones & Company, Inc. All Rights Reserved.