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

To: Dennis Roth who wrote (795)	5/7/2002 9:46:19 AM
From: Dennis Roth	Read Replies (1) \| Respond to of 1088

Final Lap In NextWave Case Begins wirelessweek.com BY MARK ROCKWELL MAY 6, 2002 WIRELESS WEEK 2002, REED BUSINESS INFORMATION, A DIVISION OF REED ELSEVIER INC. ALL RIGHTS RESERVED. WASHINGTON Following weeks of turbulence, the storm over NextWave Telecom Inc.'s spectrum has calmed down considerably. Still, several critical, albeit less controversial, developments are occurring. Today marks the start of the final lap in the race to settle who will end up owning NextWave's spectrum. The government, led by the FCC, is slated to file its case with the Supreme Court. It has argued throughout the legal battle that the commission acted properly in reclaiming and re-auctioning the bankrupt company's spectrum after it stopped making payments on the licenses it won in 1996. Alaska Native Wireless, one of the re-auction winners, also will file its case today. Both filings are important because they will reveal what tack the government and re-auction winners are taking to regain the disputed spectrum, which was returned to NextWave by a federal appeals court that ruled the FCC violated federal bankruptcy law in taking back the licenses. NextWave's arguments are due to be filed with the court in June. NextWave's lawyers will be watching to see if the FCC argues strictly along the lines of whether the lower court interpreted federal bankruptcy law properly in nullifying the re-auction, or whether it will pursue jurisdictional issues among district courts. Knowing the government's strategy could give NextWave leverage in its arguments in June, sources say. In related news, Verizon Wireless last week said the FCC had returned the bulk of the deposit it paid to acquire NextWave spectrum. The company says it will use the $1.5 billion returned by the agency to pay down its debt. Verizon has been seeking the return of it deposit ever since the legal imbroglio over ownership of the spectrum began months ago. Alaska Native received $472 million back, according to the FCC. In returning the bulk of Verizon's deposit the FCC continues to hold on to $200 million in case the re-auction is ruled valid the agency "was just doing what it said it would," says an FCC spokeswoman, who declined further comment. The commission announced in late March it would return most of the deposits paid to the agency by Verizon and other smaller bidders for the contested spectrum. The refund doesn't completely satisfy Verizon. The payment is a good start, says Verizon Wireless President and CEO Denny Strigl, but the company still wants to see the re-auction declared null and void. Verizon bid $8.7 billion for 67 licenses but argues now that the licenses are not worth as much in the current market. "This deposit was handed over 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," Strigl says. "The auction is clearly void, or voidable, and we believe a return of the entire deposit and cancellation of our obligations are required."