Verizon Wireless confirmed it reached agreement with Cablevision-...

FCC- related debt with remaining $635 million share that goes to Cablevision to be used to pay down bank debt. Northcoast’s partners include Northcoast PCS and subsidiary of Cablevision. Cablevision owns 49.9% of Northcoast Communications. Deal, which is expected to close in 2nd quarter of 2003, appears to be one of first to include licenses that take advantage of FCC sunsetting wireless spectrum cap Jan. 1. Commission this year agreed to phase out 45 MHz spectrum cap, immediately lifting it for all areas to 55 MHz. In 4 small markets -- Binghamton, N.Y., Lewiston, Me., and Meadville and Stroudsburg, Pa. -- carrier’s holdings will go to 50 MHz from 40, Verizon Wireless spokesman said. Carrier said it planned to finance purchase by drawing on existing intercompany loan with Verizon Communications, and network investment for increased capacity related to those licenses “has been factored into the company’s near-term capital program.” Total population covered by licenses is 47.4 million and includes 10 MHz in each of 50 markets in D-, E- and F- blocks at 1900 MHz. Deal also includes more than 300 cell site locations from which company could continue to build out its network, Verizon Wireless said. Purchase of N.Y.C. licenses came within weeks of FCC’s allowing NextWave re-auction winners such as Verizon to opt out of their Jan. 2001 bid obligations pending continued litigation over fate of NextWave spectrum. Of more than $8 billion that Verizon bid in that auction, $4.1 billion had been for two 10 MHz licenses in N.Y. “These highly attractive licenses, overlapping some of our most densely populated service areas, will enable us to efficiently deploy capital to provide more network capacity,” Verizon Wireless CEO Dennis Strigle said.