In long-form applications for C-block licenses made public last w...
In long-form applications for C-block licenses made public last week, financial details emerged on relationships of designated entities with noncontrolling, larger carriers. Black Crow Wireless, designated entity with backing from U.S. Cellular Corp. (USCC), told FCC that Black Crow…
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has right to require USCC to buy its interest. “Significantly, there is no corresponding ‘call’ right on the general partner’s [Black Crow’s] interest,” filing said. Petitions to deny long-form applications are due Fri. for auction of 422 licenses that closed in Jan. and raised $17 billion (CD March 1 p3). Dobson Communications said it reached PCS transfer rights agreement with AT&T Wireless. Dobson subsidiary DCC PCS won 14 licenses at auction for $546 million. Agreement with AT&T Wireless provides that if Dobson wants to sell or transfer its interest in any PCS license it won at auction it will first offer spectrum to AT&T Wireless. If AT&T Wireless declines to buy licenses, Dobson said it could sell them to any other party. Application also describes Dobson-AT&T Wireless joint venture that depends on outcome of auction. Each agreed to contribute at least one 10 MHz license in agreed-upon markets. Dobson would then retain control of venture, which would use AT&T brand. Designated entity Cook Inlet/VS GSM (CIVS), in which VoiceStream has noncontrolling interest, said VoiceStream had “neither de jure nor de facto control.” Cook Inlet won 22 licenses for $506.38 million and VoiceStream PCS was high bidder for 19 licenses for $482.65 million. Cook Inlet Wireless, subsidiary of Alaska Native Regional Corp. Cook Inlet Region, controls CIVS. Filing said VoiceStream will have contributed $149.4 million in venture and Cook Inlet 50.1% ($150 million) pending approval of license applications. If CIVS converts existing $207 million note held by VoiceStream, latter would hold 70% of equity in designated entity. CIVS also can call on VoiceStream for additional cash commitments, bringing its equity interest up to 85% but leaving CIVS in control of management authority, filing said.