FCC Wireless Bureau requested comment on waiver request by Qualco...

used in any spectrum auction for up to 3 years. Commission did so as result of 1999 U.S. Appeals Court, D.C., decision that directed FCC to designate company under agency’s pioneer’s preference program. Qualcomm sued FCC in 1992 after it was denied pioneer’s preference for developing CDMA technology for PCS systems. In its waiver request, Qualcomm said it had had limited opportunity to use ADV, now valued at $114 million. Voucher expires in June 2003. Qualcomm asked that FCC waive any requirement that voucher be used in auctions occurring after June 8, 2000, and allow voucher to be used to pay debt owed by licensees using CDMA technology in 3 auctions. Those auctions are No. 5, PCS C- block licenses; No. 10, C-block re-auction; and No. 11, PCS licenses for D-, E- and F-blocks. In NextWave re-auction in Jan. 2001, Leap Wireless reached agreement with Qualcomm to provide $125 million in financing to support its bidding by transferring ADV to Leap. Those licenses have since been returned to NextWave after U.S. Appeals Court, D.C., ruling overturned results of re-auction. In Aug. 1 waiver request, Qualcomm told FCC that original ADV order contained assumption that it would be used in what was then upcoming 700 MHz auction. “It is noteworthy that the ADV order does not reject use of the ADV in previous auction, i.e., for installment payments,” Qualcomm said. It said value of voucher now was $114 million because it transferred $10.8 million of voucher to Summit Wireless for payment on Jackson, Miss., license that wasn’t in dispute as part of NextWave re- auction. One caveat of voucher is that it be used to build system that uses CDMA technology on which Qualcomm’s pioneer’s preference is based. Of 13 auctions since June 2000, only NextWave re-auction involved licenses for which CDMA technology would be appropriate, Qualcomm said. Smaller 700 MHz auction that starts Aug. 27, after larger block of bidding that had been set to start June 19 was delayed indefinitely by Congress, doesn’t appear to involve bidders who will use CDMA, Qualcomm said. “Finally, the Supreme Court’s acceptance of certiorari in NextWave v. FCC places the spectrum in Auction 35 in a legal limbo that is not likely to be resolved for several years,” Qualcomm said. “Thus, the opportunities for use of the ADV anticipated by Qualcomm and the Commission in early 2000 have simply not come to fruition.” Since June 2000, financial challenges facing wireless sector also have increased substantially, company said. Ability to use ADV to help “undercapitalized companies” retire past auction debt would put voucher to good use, it said. Qualcomm said it had no specific carrier in mind, but had been approached by several. Bureau is seeking comments by Aug. 30, with replies due Sept. 9.