Verizon Wireless CEO Denny Strigl told National Governors Assn. m...

of deposits from Jan. 2001 re-auction but concluded that winning bidders such as Verizon should continue to be held to nearly $16 billion in potential auction obligations until pending Supreme Court review of NextWave case played out. Last year, U.S. Appeals Court, D.C., reversed FCC decision to revoke bankrupt carrier’s licenses for missed payment, overturning re-auction results and provoking govt. appeal to U.S. Supreme Court. “It is bad enough that we have to remain on the hook to the government, to the tune of $16 billion, for spectrum that it cannot deliver,” Strigl said. “Worse, investment firms see our industry as having a $16 billion liability that is impacting their willingness to raise or loan capital.” Earlier this year, House Telecom Subcommittee Vice Chmn. Stearns (R-Fla.) introduced bill that would compel FCC to return remaining 15% of deposits to bidders in NextWave re- auction and allow each bidder to wipe out its license rights under NextWave re-auction to free it from remaining payment obligations. “When FCC Chairman Powell was appointed to the President’s Corporate Fraud Task Force last week, he confirmed how critical it is for government to act on the severe capital crisis straining the telecom industry,” Strigl said. Were Commission to remove $16 billion overhang of payment obligations over NextWave re-auction, he said, “if the FCC ever gets the spectrum back, it can re-auction it then.” Strigl also called for easing “burdensome” regulations at federal and state level. As example, he cited wireless local number portability mandate, for which Verizon Wireless has petitioned FCC for forbearance. Commission is to vote on that request at agenda meeting today (Tues.). Strigl said that mandate, which takes effect Nov. 24, was designed to make wireline carriers more competitive, he said, but “wireless is already fiercely competitive. And when the rule was written, I'd suggest no one gave thought to how it would work. Today, wireless customers can expect to get a working phone number in minutes. That expectation will increase to days with local number portability.” Strigl also cited recent Cal. PUC proposal for consumer protection rules that he said would cost Verizon Wireless “tens of millions of dollars a year in paperwork.” As example, he said proposal would require customers to physically sign for any changes in their service plan, meaning that simple alterations could take days instead of hours.