Despite wide expectation that FCC is about to release item consid...

did tell Hill staffers this week that it was considering action to release winners of NextWave re-auction from FCC deposits. However, aide said senators were planning to “stay vigilant” in efforts to gain co- sponsors and push measure through Congress. Despite FCC representations, order hasn’t been released, aide told us: “I haven’t seen it.” Sen. Kerry (D-Mass.) still was gaining co-sponsors on bill he introduced (S-2869), adding 4 in addition to original co-sponsor Sen. Brownback (R-Kan.) since Senate returned -- Sens. Ensign (R-Nev.), Enzi (R-Wyo.), Leahy (D-Vt.), Lincoln (D-Ark.) Bill could have up to 10 co- sponsors by end of Wed., aide said, including Sens. Allen (R- Va.), Cleland (D-Ga.), Murray (D-Was.), Nelson (D-Fla.) Aide said if FCC issued notice of proposed rulemaking (NPRM) on issue, it probably wouldn’t deter Senators from continuing work on legislation due to amount of time it could take to complete rulemaking. House version of bill, HR-4738, introduced by Rep. Stearns (R-Fla.), gained 5 new co-sponsors since Sept. recess -- Reps. Cunningham (R-Cal.), Bryant (R- Tenn.), Stickland (D-O.), Davis (D-Cal.), Wilson (R-S.C.). Bill now has 40 co-sponsors. At our deadline, FCC hadn’t released proposal outlining options to allow NextWave re- auction winners to opt out of their Jan. 2001 bid obligations. Several sources said Commission was expected to issue proposal shortly that would cover scenarios for allowing bidders to opt out of bids and would seek comments. Verizon Wireless and other successful competitors in that re- auction have sought release from auction “overhang” in which they would be obligated to pay full amounts of bids should FCC ultimately prevail in U.S. Supreme Court. Commission is challenging U.S. Appeals Court, D.C., ruling that had disagreed with FCC’s decision to cancel NextWave’s PCS licenses for missed payment, leading agency to return disputed spectrum to NextWave. FCC has returned all but 15% of bidders’ down payments. It was unclear late Wed. whether item would take form of public notice or notice of proposed rulemaking, but either version was seen as likely to ask questions to fill out factual record before FCC. Item would come just weeks before Supreme Court is to hear oral argument in NextWave case Oct. 8. Several industry observers said that although FCC has been reluctant to do anything in short- term to release NextWave auction bidders from “overhang” issue, that economic downturn in telecom sector has stepped up pressure on FCC to take steps in area where carriers have complained that their credit ratings have suffered. “That’s a substantial sum of money being tied up,” one source said, citing nearly $16 billion in bids that NextWave re-auction drew.