Subject: [NEXTEL-1] Verizon Wireless Preparing To Drop FCC Lawsuit On NextWave

From: Marcel <[email-masked]>
Date: Wed, 27 Nov 2002 15:05:45 -0500

"As long as the money is in the bank"-V.P. VZ
http://www.wirelessweek.com/index.asp?layout=print_page&doc_id=108516

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www.wirelessweek.com

Verizon Wireless Preparing To Drop FCC Lawsuit On NextWave

By Mark Rockwell
November 27, 2002
news@2 direct

WASHINGTON--In another big step toward unwinding the
NextWave Telecom mess, Verizon Wireless officials confirm the company recently
put the brakes on court actions it was pursuing to reclaim millions of dollars
tied up in abortive spectrum bids.

Verizon sued last March in the U.S. Court of Federal Claims, seeking the
return of money it bid for licenses put up for sale in the re-auction of
NextWave spectrum that later ran aground amid legal challenges.

The appeals court only oversees appeals of government contracts and is
considered the last resort in contesting a government contract.

But in a new filing with the court, which was made jointly with the
Department of Justice in an official 'stipulation' document, Verizon Wireless
pledged to drop the suit once the FCC fulfills its promises to return the
company's remaining deposit that was collected for NextWave's spectrum and
releases the company from its bid obligation, according to Verizon spokesman
Jeffrey Nelson.

At the same time, Verizon asked for a stay at the D.C. Circuit Court-where it
also filed an appeal of the auction-of all activities in the case until the FCC
comes through, says Nelson. Once the company is satisfied the FCC is moving to
resolve the issue, it will withdraw the Circuit Court appeal, which will halt
the legal action. The withdrawal doesn't require a judge's approval, he
says.

Verizon is taking the actions as the FCC prepares to return the company's
remaining several million dollars of deposit money collected for NextWave's
spectrum.

The agreement to give the money back was a condition of the FCC's Nov. 14
'opt out' ruling that frees all NextWave bidders from their bid obligations.
Verizon Wireless had been vigorously pursuing a release from its bid
obligations, as well as getting its full NextWave deposit back from the FCC. The
appeal to the government court was a part of that strategy.

The FCC's case over whether it has the power to reclaim spectrum that
NextWave won but never paid for before taking shelter in bankruptcy
reorganization is pending before the U.S. Supreme Court.

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