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

To: Rono who wrote (597)	12/6/2001 2:40:31 PM
From: Eric L	Read Replies (1) \| Respond to of 1088

re: Fat Lady Not Yet Singing >> Nextwave Urges End To Legal Battling, Lawmakers Question Deal Kristy Bassuener Allyson Vaughan Wireless Week December 6, 2001 NextWave Telecom Inc. attorney Donald Verrilli spoke on the bankrupt carrier's behalf in front of House legislators today. Speaking before the House Judiciary Subcommittee on Commercial and Administrative Law and the Subcommittee on Courts, The Internet and Intellectual Property at a hearing that began at 10 a.m. EST, Verrilli sought Congressional approval of its spectrum settlement with the FCC and wireless carriers. In his prepared remarks, Verrilli gave the lawmakers background on the legal wrangling that began in 1998 over whether the licenses stayed protected during bankruptcy proceedings or whether the spectrum remained public property. Verrilli's remarks focused on what might matter lawmakers most: the cost -- to both taxpayers and NextWave -- of continuing the litigation versus approving legislation rubber-stamping the settlement. '[NextWave] has concluded that the cost of continued litigation is outweighed in light of the benefits to creditors and other stakeholders afforded under the settlement agreement,' according to Verrilli's remarks. 'This case has been ongoing for over three years and without settlement could proceed well into 2003 or later before resolution. The parties and their counsel involved... have spent extensive time and... money attempting to resolve this case.' Approval of the spectrum settlement would require NextWave to hand over its C- and F-Block licenses to the carriers that won licenses in a January re-sale, which NextWave had successfully contested in court. Those carriers, including Verizon Wireless, Alaska Native Wireless and others, will pay about $16 billion for the spectrum. The government will keep $10 billion and NextWave would get about $6 billion after taxes. The prepared remarks did not directly address the reasons why NextWave should be allowed to make billions of dollars in profit on the public spectrum licenses. During this morning's hearing, Rep. Mel Watt, D-N.C., questioned whether NextWave used the bankruptcy process to 'substantially benefit themselves financially' and whether the government should preserve auctions for small businesses, women and minorities. Jerrold Nabler, D-N.Y., criticized the FCC for going ahead with the January re-auction when there was litigation pending and when the 'federal government will be on the hook for several billion dollars.' He also asked 'why did the FCC go ahead and recklessly do that?' Nabler called it a 'rather arrogant assumption' that the FCC would prevail in court. In late November, the U.S. Department of Justice gave its nod to the deal, but the settlement needs congressional ratification. Sen. John McCain, R-Ariz., said he planned to look into how U.S. taxpayers fared on the deal. Carriers that bid in the 1996 auction during which NextWave originally won its licenses have beefs, as well. Eldorado Communications of Memphis, Tenn., which returned some of the spectrum it won in the sale due to high bidding prices, told Wireless Week that the deal 'undercuts the integrity' of the auction process. Another 1996 winner, Urban Communicators PCS, which like NextWave filed for Chapter 11 after the sale, points out that making a special deal for NextWave appears biased. Stephen Roberts, the managing director of Eldorado Communications also spoke at today's hearing. Other witnesses included Jay Bybee, the assistant attorney general from the Department of Justice and the FCC's John Rogovin, deputy general counsel. Sen. Ernest Hollings, D-S.C., an opponent of the settlement, will hold a press conference on the issue in Washington, D.C., today at 2:30 p.m. EST. << - Eric -