Monday, January 27, 2003
The U.S. Supreme Court ruled in favor of bankrupt wireless company NextWave Telecom, and ordered the Federal Communications Commission to return wireless spectrum licenses worth $4.7 billion that NextWave won in a 1996 auction.
The court, on an 8-1 vote, rejected arguments that the FCC had a regulatory interest in taking licenses from a company that is reorganizing its finances.
The Hawthorne, N.Y.-based NextWave's $4.7 billion bid for the frequencies was the highest in 1996. After taking them back, the FCC sold the licenses in 2001 to Verizon Wireless, VoiceStream Wireless and other companies at a second auction for nearly $16 billion.
The FCC agreed to return the deposits to the bidders this year. The airwave slices have been unused during the fight between NextWave and the FCC.
The court ruling said the FCC had acted illegally by snatching the spectrum away from NextWave, as bankruptcy law forbids the agency from repossessing licenses held by a debtor in bankruptcy.
By: DocMemory
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