NextWave recently filed with the U.S. Bankruptcy Court, White Pla...

Telecom and Eldorado challenging NextWave’s compliance with its 5-year buildout requirements. After the Commission returned NextWave’s previously cancelled PCS licenses, the bankrupt carrier made initial construction filings for most of its C-block licenses. One issue raised during the proceeding was whether an earlier settlement agreement reached by the FCC, NextWave and the Jan. 2001 PCS re-auction winners gave NextWave additional time to meet certain construction requirements. NY Telecom argued NextWave missed its buildout deadlines. NextWave had argued that the clock stopped on its buildout requirements during the period when the FCC had cancelled its licenses and before the U.S. Appeals Court, D.C., ruled otherwise. During the period covered by the original FCC agreement, which expired Dec. 31, 2001, when Congress didn’t act, the clock had also stopped, NextWave argued. The FCC Wireless Bureau agreed with that interpretation last year (CD March 4/03 p1) and NY Telecom sought full FCC review. NextWave paid NY Telecom and Eldorado $1.23 million under the settlement terms for the tolling challenge. NY Telecom and Eldorado also settled with NextWave their challenge of a Feb. 13, 2004, FCC order authorizing NextWave to assign certain licenses to Cingular. In Sept. the Bankruptcy Court approved the NextWave-Cingular spectrum sale, contingent on FCC approval, which came in Feb. NY Telecom (NYT) had appealed that FCC decision to the U.S. Appeals Court, D.C. NextWave paid the firms $25,000 to settle that challenge. The Bankruptcy Court approved a NextWave filing that sought permission to settle the claims related to the Cingular license transfer. “Both NextWave and NYT have spent significantly more time and expense on litigation and other contested proceedings than either would have ever thought possible when their respective businesses were formed,” NextWave told the court. NextWave said it would continue to maximize the value of its assets for creditors. “However, where, as here, disputes that have been ongoing for several years in multiple forums can be resolved on a reasonable basis -- thereby avoiding further litigation and its attendant expense -- then it is in the best interest of the estates to achieve such resolution.” The agreements to settle pending matters involve all disputes and challenges between NYT and NextWave, the filing said. NY Telecom and Eldorado made separate filings at the FCC and the D.C. Circuit seeking dismissal of its challenges. For the settlement of disputes on the FCC challenge, the $25,000 that was part of the agreement represented the legal expenses NYT and Eldorado incurred pursuing the challenges.