Subject: [NEXTEL-1] NextWave/FCC Wash Hands Of Spectrum Struggle - After seven years in limbo, NextWave case nears resolution. But who wins?

From: [email-masked]
Date: Sun, 02 May 2004 06:09:17 -0400

NextWave/FCC Wash Hands Of Spectrum Struggle
After seven years in limbo, NextWave case nears resolution. But who
wins?
BY MARK ROCKWELL
MAY 1, 2004
WIRELESS WEEK

WASHINGTON—Analysts pondering the implications of the FCC's settlement
with NextWave Telecom say the initial reviews are good for the company,
but possibly bad for other spectrum licensees.

The deal finally puts a nail in the coffin of the 7-year-old case,
saying that it "extinguishes" any possibility that NextWave could make
claims against the commission. The settlement, announced in mid-April by
the commission, would require NextWave to relinquish 90 percent of its
spectrum. In doing so, the commission looks to recover $1.6 billion in
cash, including NextWave's down payment, and anticipates a total of
about $4 billion when cash and spectrum recovery are combined.

Some industry analysts wonder how the settlement will affect spectrum
value overall, particularly in light of Verizon Wireless' recent pledge
to bid $5 billion for Nextel Communications' 800 MHz spectrum. Nextel's
spectrum is part of a controversial swap with public safety. If, indeed,
Verizon is willing to pay big money for that spectrum, NextWave may be
able to command a pretty penny from carriers looking to buy its
spectrum. That has spectrum-starved carriers eyeing the final settlement
with interest.

The U.S. Bankruptcy Court of the Southern District of New York, which is
handling NextWave's re-emergence from bankruptcy, still must approve the
settlement. It has slated May 25 to issue a decision, according to
NextWave spokesman Michael Wack.

For their part, NextWave officials say they're looking forward to the
bankruptcy court's review. "No decision has been made yet on whether to
sell the licenses," Wack says. The 30 10 MHz licenses that the company
retains in 25 markets across the United States give NextWave a footprint
that could be ideal for a data network, he says. The retained licenses
have footprints in New York City, Washington, D.C., and Boston, as well
as other areas. "It gives us 73 million pops nationally."

At least one analyst wondered if Verizon Wireless, in making its $5
billion pledge, had stumbled. "I wonder if Verizon has painted itself
into a corner on a bid for any NextWave spectrum," says Jane Zweig, CEO
and partner at The Shostek Group. Zweig suggests the carrier may have
inadvertently set the bar too high for any spectrum it bids on when it
said $5 billion would be the minimum for the Nextel spectrum.

NextWave, other analysts say, may be the big winner in the settlement.
"While the government will gain a large quantity of spectrum that it can
auction off, NextWave will be able to keep more quality frequencies in
the key markets, most notably New York," says Legg Mason in a report
issued shortly after the settlement was announced.

Even if the scotched deal is officially settled between the company and
the commission, the conclusion of the whole affair is far from clear.

http://www.wirelessweek.com/article/CA414498?spacedesc=Departments&stt=000

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From: Rick Parrish <[email-masked]>
Date: Sun, 02 May 2004 07:30:05 -0500

[email-masked] wrote:

Some industry analysts wonder how the settlement will affect spectrum
value overall, particularly in light of Verizon Wireless' recent pledge
to bid $5 billion for Nextel Communications' 800 MHz spectrum.

What?! I thought VZ was making that $5B offer on the 1.9 Ghz spectrum
that the FCC plans to offer at auction.

That's coming from the following posted here on Nextel-1 back on April
8th ...

5 Billion Opener For Verizon
By Mark Rockwell

WASHINGTON -- Verizon Wireless is prepared to put up $5 billion to buy
spectrum that Nextel Communications is vying for as part of its
spectrum swap deal the FCC is reportedly preparing to approve.
In a letter sent today to John Muleta, FCC wireless telecommunications
bureau chief, Verizon Wireless said its initial bid on an auction of
10 MHz of PCS spectrum at 1.9 GHz would be $5 billion. In the letter,
Molly Feldman, Verizon Wireless vice president of business
development, said no solution "can or should include a grant of
spectrum in an entirely different band to Nextel, or anyone else, to
the exclusion of other parties..."

Can't this guy get it right? He's misquoting his own story! Sheeesh!

-rick

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From: [email-masked]
Date: Sun, 02 May 2004 13:08:46 -0400

Wireless week is incredible.......

I thought I was the only one with a crystal ball!

Rick Parrish wrote:

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From: Paul J Zawada <[email-masked]>
Date: Mon, 3 May 2004 10:09:38 -0500

> that the FCC plans to offer at auction.

Must have been a Freudian slip...

--zawada