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

To: Dennis Roth who wrote (790)	4/30/2002 10:21:48 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 1088

Verizon Wireless to cut debt with deposit back biz.yahoo.com Monday April 29, 4:56 pm Eastern Time WASHINGTON, April 29 (Reuters) - Verizon Wireless said on Monday the U.S. government repaid $1.5 billion related to wireless licenses for which Verizon bid but are held by bankrupt NextWave Telecom Inc. (Other OTC:NXLC.PK - news) The biggest U.S. mobile telephone carrier, a joint venture of Verizon Communications (NYSE:VZ - news) and Vodafone Group Plc (VOD.L), said it plans to use the funds to reduce commercial paper, which stood at $10.6 billion at the end of 2001, and overall debt, which totaled $62.9 billion. The company paid the government $1.7 billion in down payments out of the roughly $8.5 billion it bid at auction in early 2001 for the 67 licenses, and is still seeking the final $200 million held. "This deposit was handed over in good faith to the FCC more than a year ago and its return, along with the remainder of the deposit that the FCC continues to hold, is long overdue," said Verizon Wireless Chief Executive Officer Denny Strigl. The Federal Communications Commission repossessed the licenses from NextWave after the company failed to pay for them on time and resold them to Verizon Wireless and other carriers. However, a federal appeals court ruled last summer that the airwaves could not be repossessed by the government simply because of nonpayment and ordered them returned to NextWave, throwing the FCC's 2001 re-sale of the airwaves into jeopardy. The FCC has appealed to the U.S. Supreme Court, with oral arguments expected this fall and a decision either late this year or early in 2003. However, the bidders in the 2001 sale petitioned the FCC for the return of their down payments, and Verizon has gone to federal court to void the sale and reclaim the remaining amount held by the government. "The auction is clearly void or voidable, and we believe a return of the entire deposit and cancellation of our obligations are required," Strigl said. The FCC has disputed Verizon Wireless' assertion that its participation in the 2001 auction was void or voidable, and the company knew the risks involved of prolonged litigation. The agency has said it would hold on to 3 percent of the total amount bid by the carriers to keep the auction alive, which is equal to the penalty assessed if carriers were to withdraw their winning bids.