WASHINGTON-U.S. District Judge Thomas J. Hogan later this week could rule on the Justice
Department’s expected motion for summary judgment against Nextel Communications Inc.’s lawsuit to vacate a 1995
antitrust consent decree.
The decree prohibits Nextel, the nation’s top dispatch operator, and Motorola Inc., from
holding 900 MHz specialized mobile radio licenses in major U.S. markets. Nextel needs the decree relaxed to keep
most of the 191 licenses it purchased for $150 million from Geotek Communications Inc. in a bankruptcy
auction.
The Justice Department, which opposes the decree’s repeal, last Friday was expected to file a motion to
dismiss the Nextel lawsuit. Nextel is expected to respond to Justice’s motion on Wednesday.
At this Friday’s
hearing, Hogan could decide the matter based on paper filings alone. Justice wants Hogan, who signed the decree in
1995, to do just that. If that does not occur, the case will take the form of a court trial, which could drag on for
months.
Nextel’s problem is the asset purchase agreement with major Geotek creditors Hughes Electronics Corp.,
Merrill Lynch and IBJ Whitehall Bank & Trust Co. has a termination clause affecting most of the licenses that kicks in
if the court either rules against Nextel or simply has not ruled by June 9.
Mobex Communications Inc., a California-
based SMR with 50,000 subscribers that tried but failed to acquire Geotek’s dispatch licenses, alleges Nextel violated
the antitrust decree and has asked the court to either enforce the decree or investigate its complaint.
Nextel opposed
the filing on grounds that Mobex is not a party to the decree.
Mobex last week was ready to file an amicus, or friend
of the court, brief. Other SMRs may do the same.
