CARRIERS CONSIDER REVIVAL OF NEXTWAVE DEAL BUT SEE NO QUICK FIX
Stakeholders in NextWave case talked Thurs. about possible options in response to unwillingness of Congress to codify proposed settlement by end of last year. Although FCC and Dept. of Justice supported $16 billion deal with bankrupt carrier that would have required return of auctioned C-block licenses, congressional action was needed to put $10 billion back into U.S. Treasury and allow NextWave to keep $6 billion after taxes. Sources said decision whether to revive proposal in some form was unlikely before end of day, but said negotiations would continue.
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Verizon Wireless spokesman denied parties met Thurs. to discuss reviving settlement. However, it was learned that companies involved in settlement have been talking by phone about how to retrieve down payments they made to FCC after winning spectrum that originally was NextWave’s. Verizon Wireless made largest payment of close to $1.8 billion after reauction.
Meanwhile, NextWave official said company was “willing to listen” to any future settlement proposals but for now was “focusing on our build-out.” Company has been constructing its system in all 95 markets with goal of starting service in April if litigation is concluded by then. Still pending is possible U.S. Supreme Court action, which is expected by mid- Feb. to decide whether to review U.S. Appeals Court, D.C., ruling that returned spectrum to NextWave and placed re- auction in jeopardy.
Despite mixed reaction to last year’s proposal, even congressional supporters of settlement gave up hope of sealing deal by end of 2001 (CD Dec 12 p1), as required by initial proposal. Senate Commerce Committee Chmn. Hollings (D-S.C.) and ranking Republican McCain (Ariz.) jointly have expressed willingness to hold hearings on issue in 2002 (CD Dec 7 p1), while making no bones about their opposition to terms of proposal.