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

To: kech who wrote (823)	10/8/2002 12:11:05 PM
From: Jon Koplik	Respond to of 1088

Bloomberg -- NextWave Draws Support at U.S. Supreme Court Hearing. bloomberg.com NextWave Draws Support at U.S. Supreme Court Hearing (Update1) By Greg Stohr Washington, Oct. 8 (Bloomberg) -- NextWave Telecom Inc. got support from seven of nine justices as the company's lawyer urged the U.S. Supreme Court to let it keep disputed airwaves worth as much as $12 billion. The justices are reviewing efforts by the Federal Communications Commission to reclaim the spectrum from NextWave, which won 63 licenses in a 1996 auction and then missed the payment deadlines and filed for bankruptcy protection. A victory for NextWave would clear the largest legal obstacle it faces, freeing the company to finish building its network or sell the licenses. Justices Antonin Scalia and David H. Souter criticized the government's argument that the FCC's interest in ensuring efficient use of the licenses can trump the normal rules of bankruptcy procedure. Souter said the agency sought to reclaim the airwaves only when the fluctuating market value of the spectrum was higher than what NextWave bid for it. ``It seems that at each point where the FCC made a decision, it made an economic decision rather than a regulatory decision,'' Souter said. NextWave shares, which have lost about 90 percent of their value in the past year, rose 65 cents, or 42 percent, to $2.20 at 11:22 a.m. in over-the-counter trading. Scalia pointed to a provision in the federal bankruptcy code that says government agencies can't revoke a license ``solely because'' the bankrupt company ``has not paid a debt that is dischargeable in the case.'' ``I consider this a classic case for what this provision of the bankruptcy code was directed to,'' Scalia said. Government Disadvantage Only Justice Stephen G. Breyer suggested he might vote in favor of the Justice Department and FCC. He said he was worried that a ruling for NextWave might put the FCC at a disadvantage compared with other creditors. An FCC win would leave ownership of the airwaves in doubt because NextWave could return to a lower court with other arguments. Chief Justice William H. Rehnquist and Justices Sandra Day O'Connor, Ruth Bader Ginsburg, John Paul Stevens and Anthony M. Kennedy also aimed skeptical questions at Justice Department lawyer Paul Clement. Justice Clarence Thomas, as is his usual practice, asked no questions. NextWave's wireless licenses, all but a handful of which are in dispute, give it access to the 10 largest U.S. markets, including New York, Los Angeles and Washington, and 172 million potential customers. The case is FCC v. NextWave Personal Communications, 01-653. © 2002 Bloomberg L.P. All rights reserved.