WASHINGTON-The Federal Communications Commission Wednesday approved the sale of NextWave Telecom Inc.’s remaining PCS licenses to Verizon Wireless for $3 billion.
NextWave now expects to emerge from bankruptcy protection next month, said Michael Wack, NextWave senior vice president and deputy general counsel.
“Verizon Wireless’ acquisition of NextWave’s PCS licenses is a key component of our plan of reorganization, which was approved by the federal bankruptcy court that is administering the company’s Chapter 11 proceedings in the Southern District of New York. NextWave greatly appreciates the FCC granting the regulatory approval to the transaction so soon after the bankruptcy court’s order confirming our plan,” said Wack.
Judge Adlai Hardin Jr. approved NextWave’s reorganization plan Tuesday.
NextWave filed for bankruptcy June 8, 1998. NextWave now plans to launch a commercial broadband wireless network in Las Vegas later this year and in New York in 2007. NextWave will also make its network available to public safety.
The NextWave bankruptcy saga began when it was unable to obtain the necessary financing to make the installment payments on the licenses it had bought at auction in 1996.
The C-block auction, as it was known, was set up for small businesses. Because it was the third auction after large, established carriers had already purchased their licenses, many of the C-blockers did not succeed.
After Hardin reduced the amount NextWave owed the government, the FCC canceled NextWave’s licenses. Ultimately the U.S. Supreme Court overturned this result.
Following the Supreme Court decision, NextWave sold its PCS licenses to Cingular Wireless L.LC. and Verizon Wireless and returned other licenses to the FCC. The FCC recently sold these licenses for $2.25 billion.
