WASHINGTON-National Telecom PCS Inc., which continues to battle to regain its C-block personal communications services license for American Samoa rescinded by the Federal Communications Commission, last Friday filed a petition to deny all C-block licenses granted to DCR PCS Inc.
In its petition, NatCom charged DCR (now known as Pocket Communications Inc.) with the following allegations:
That it is not a women-owned business.
That it is not a minority-owned business.
That its foreign investments exceed the 25-percent cap.
That Westinghouse Electric Corp. is an “attributable” investor, which would de-classify DCR as a small business.
That DCR’s original Form 175 was deemed incomplete by the FCC and “was defective as a matter of law.”
“The blatant violations of law and FCC rules, when combined with the fraudulent representations, renders DCR unfit to hold PCS licenses,” said NatTel President and Chief Executive Officer Jack E. Robinson in a statement. “By falsely and fraudulently trying to pass itself off as a minority-owned company, DCR has made a mockery of the FCC’s rules and Congress’ intent to maximize the participation of minorities in the wireless telecommunications industry.”
In the event the FCC does not deny DCR’s 43 licenses for which it bid $1.4 billion, NatTel asked the commission to schedule an investigative hearing regarding DCR’s activities. In addition, NatTel seeks $51,000 in out-of-pocket expenses it claimed DCR cost the company when DCR allegedly bid up American Samoa during the last rounds of the C-block auction.
“Sounds like a case of serious sour grapes to me,” replied Kevin Inda, vice president of corporate and financial communications for DCR. While DCR had not yet been served with the petition, Inda told RCR that all the allegations were false.
NatTel accuses DCR of using Janis Riker, wife of DCR Chairman Daniel C. Riker, and Eduardo Paz, a Hispanic-American investor, to stack the control group when, in fact, Riker himself runs the organization, and neither his wife nor Paz holds a controlling interest.
Another DCR investor, Masa Telecom Inc., owns 20.65 percent of DCR, but Masa itself is 94.9-percent foreign owned, NatTel.
Regarding Westinghouse’s role in DCR, NatTel said the 7.73-percent investor held a position on DCR’s auction committee, that it has veto power over any change of control in DCR and that it could exert undue influence over the direction of DCR.
“The allegation to which I can most readily reply is the one dealing with women-owned companies,” said Janis Riker. “I’ve been working here 14 hours a day, and if I haven’t, I feel sorry for the person who has been sitting in my place.”
The FCC is keeping mum on the number of petitions to deny that have been filed to date and by whom, saying that no information will be disseminated until after the filing window closes July 1. GO Communications Corp., which has been vocal in its criticism against NextWave Telecom Inc., has not filed a petition, but one is expected at the 11th hour. Steve Zecola, former president of the now-liquidated C-block concern, would not commit to a filing date, although he did say he and his lawyers “will pursue litigation against NextWave” and that “we would be foolish not to pursue [a petition] at this time.”
