The eight-year dispute between Qualcomm Inc. and the Federal Communications Commission over a pioneer’s preference license ended last week. The FCC granted Qualcomm a $125 million auction-discount voucher applicable during the next three years in government spectrum auctions.
The commission in 1992 denied Qualcomm pioneer status, which would have allowed the company to obtain a preferential license for CDMA technology. Qualcomm subsequently challenged the decision. Last July, a U.S. Court of Appeals ordered the FCC to designate Qualcomm a pioneer and quickly grant the company suitable spectrum comparable to the Miami major trading area license the FCC denied the company.
Qualcomm had negotiated a remedy with the FCC for several months. Qualcomm earlier this year asked for a 20-megahertz license in the southeastern region of the United States. The FCC established this license and others for the upcoming 700 MHz auction scheduled for Sept. 6.
But the FCC was not inclined to grant Qualcomm’s request, and several large operators opposed the request, arguing that the license may be key to many operators attempting to build a nationwide presence.
The FCC instead was more apt to give Qualcomm returned C-block spectrum from bankrupt NextWave Telecom Inc. But it is unclear if the FCC will ever gain control of those licenses as it battles with NextWave in several courts.
Qualcomm may use the voucher during the next three years for one or more licenses. The company can transfer the voucher and it may be used in whole or in part by any entity in any auction, including those in which Qualcomm is not a participant.
The FCC has scheduled two preliminary auctions, the upcoming 700 MHz band and one for reclaimed C-block licenses, for the coming months. Qualcomm said it is exploring opportunities to participate in these auctions on its own or through a partnership or consortium with other parties.
