NextWave Wants to Emerge as Broadband Player
NextWave disclosed in a filing with the U.S. Bankruptcy Court, White Plains, that it plans to reemerge as a going concern after all, after buying ITFS spectrum from the Archdiocese of N.Y. A reorganization plan filed with the court Tues. says that after selling its remaining PCS spectrum to Verizon Wireless for $3 billion and paying its debts in full, the new NextWave will reemerge with $265 million in hand and the intention of becoming a broadband provider.
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NextWave is targeting Las Vegas and N.Y. initially with a new business offering “4G” wireless broadband using equipment under development by Cygnus, a San Diego-based “early stage company.” NextWave plans first to offer service to Las Vegas in 2005 using 24 MHz of 2.6 GHz broadband radio service (BRS) spectrum it acquired in Feb. for $2.25 million, the company said in the filing.
NextWave says it expects to spend $50 million to build out a network in Las Vegas and another $35 million to cover its costs there before it becomes profitable. Las Vegas is “one of the fastest growing metropolitan areas in the country with demographics that are highly conducive to the marketing of wireless broadband services,” NextWave said. The company said the current tower inventory and flexible zoning procedures make the city attractive.
NextWave also disclosed Tues. it has an agreement with the N.Y. archdiocese for 16.5 MHz of BRS spectrum covering 18 million POPs in N.Y. and another 8 million POPs in the N.Y. metropolitan area. Because of the size of the market, NextWave said its operations are unlikely to begin there before 2007.
NextWave also said it will pay the FCC $71.9 million to settle existing debts, in addition to settling in full with its other creditors.
“After successfully defending the interests of our creditors and shareholders for over 6 years, NextWave is now poised to emerge from Chapter 11,” NextWave CEO Allen Salmasi said in a statement. “The plan is a testament to the company’s resolve and determination to pay its debts in full, to create significant value for shareholders, and to continue in its efforts to become a leading developer and provider of innovative broadband wireless services.”
The filing is the latest development in the years- long NextWave saga, which saw the company file for bankruptcy protection when it was unable to pay $4.7 billion for licenses it won in a 1996 FCC auction. The judge in the case scheduled a hearing on NextWave’s disclosure statement Jan. 5 and a hearing on plan confirmation Feb. 15. NextWave also said that in the future it will be known as NextWave Broadband Inc.