NextWave comes out well in the settlement it reached with the FCC...

spectrum that it can auction off, NextWave will be able to keep more quality frequencies in the key markets, most notably New York,” Legg Mason analysts said. In addition, the report said: “By returning some spectrum to the government instead of trying to sell it all to the industry, we believe NextWave not only reduces market and regulatory uncertainty, but also cuts its auction debt, potential capital gains and tax obligations to the government.” Legg Mason said it would be surprised if NextWave didn’t seek to sell or lease most or all of the spectrum it kept under the FCC agreement. That means carriers would be able to acquire spectrum from either the government, through auction, or NextWave, through sale or lease, the report said. Although generally good for the industry by providing more supply, this “bifurcated approach could create some complexity for the industry,” the analysts said. Legg Mason said NextWave also made out fairly well financially under the agreement. The $1.6 billion it’s slated to pay the U.S. Treasury includes a $500 million down payment it made in 1996 when it won the spectrum at auction, plus the $714 million it agreed to pay the govt. in auction debt for spectrum sold to Cingular last year. “So, in effect, there’s only $386 million in new payments required” for the spectrum it retained under the latest deal, Legg Mason said. CTIA said the agreement was “great news” because the wireless industry “can now put this extremely valuable 1.9 GHz spectrum to use in delivering innovative, competitive services to urban and rural areas.” NextWave said the agreement “resolves all claims and disputes” between it and the FCC and will enable the company to complete its reorganization and emerge from bankruptcy “sometime after September 30.” The Federal Bankruptcy Court, White Plains, N.Y., scheduled a May 25 hearing to consider NextWave’s request for approval of the agreement.