News
Issue #2001 - 26 (June 2001)
(Updated June 27,  2001)

MARKET OUTLOOK & TRENDS

Court Rules FCC Violated Bankruptcy Law by Revoking Licenses

The government shouldn't have taken back wireless licenses from a company that won them in 1996 but later went bankrupt, a federal appeals court ruled. The decision throws into flux the results of a recent $17 billion wireless auction. The Federal Communications Commission had revoked the licenses from the company, NextWave Personal Communications, and re-auctioned them earlier this year. But the court's decision casts doubt on whether wireless firms -- such as Verizon -- that bid $17 billion on the contested licenses will get to keep them.

Appeals Court Hands Bankrupt NextWave A Win
The U.S. Court of Appeals for the District of Columbia found that the Federal Communications Commission acted inappropriately when it repossessed 90 licenses from NextWave Telecom following the company's descent into bankruptcy. The licenses have already been re-auctioned.
 (Wall Street Journal) CTIA's response to the decision is available at: (WOW-COM)

Mobileinfo Comments and Advisory:  This is a very interesting twist to an important question - who owns the spectrum and for how long. Courts have interpreted current laws of spectrum ownership. However, public debate must ensue so that the legislators can write the final act in the interest of moving us forward. Auction rules need to be redefined.

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