HOLLINGS SEEN KEEPING DISTANCE FROM NEXTWAVE TALKS
Senate Commerce Committee Chmn. Hollings (D-S.C.) has no intention of becoming involved in renewed wireless industry attempts to negotiate settlement among NextWave spectrum re- auction winners, according to knowledgeable source. Senate Appropriations Committee ranking Republican Stevens (Alaska) met Tues. afternoon with NextWave and carriers that last year bid nearly $16 billion on spectrum that bankrupt company had returned to FCC (CD May 6 p4).
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Negotiators from carriers such as Verizon Wireless, AT&T Wireless-affiliated Alaska Native Wireless and several other re-auction winners were to meet with Stevens to discuss possibility of settlement on licenses. Source said Hollings, who also chairs Commerce Justice & State Appropriations Subcommittee, declined to participate in talks with Stevens and would weigh in on issue only if and when private settlement were reached.
Second source affirmed that Stevens hoped to facilitate debate leading to amicable solution among stakeholders, goal sought last year when proposal led by FCC and Dept. of Justice expired when Congress failed to codify pact by year- end. Despite Stevens’ efforts, source said, it was unlikely Tues. meeting would resolve issue. Hollings last year had opposed NextWave proposal, saying that settlement would have “inverted the law” by giving companies ownership of, rather than authority to use, spectrum, his spokesman said. Without referring to Stevens, aide said plan would have enabled carriers to do as they wished with public resource, clearly contradicting Sec. 301 of Telecom Act.
House Commerce, Trade & Consumer Protection Subcommittee Chmn. Stearns (R-Fla.) also said “there’s no expectation that the matter will be resolved soon.” He said he was circulating proposed bill to provide relief to other carriers whose licenses that were acquired through re-auction were cancelled for missed payments. Stearns said his proposal would require FCC to refund full amount of deposits and give those carriers option of relinquishing licenses to federal govt. without imposing additional obligations: “The licenses of 13 carriers who gained them through the re-auction are in limbo without the licenses and without their down payments totaling more than $3.1 billion. Through no fault of their own, they cannot use the spectrum, so why shouldn’t they get their deposits back? As it stands, these funds cannot be used for new investments or to improve services for their customers.”