WASHINGTON-In light of the Federal Communications Commission’s recent finding that NextWave Telecom Inc.’s foreign ownership exceeded the FCC’s 25-percent threshold, forcing a company reorganization of that segment, C-block winner and defaulter National Telecom PCS Inc. has filed yet another pleading with the commission questioning DCR PCS Inc.’s (now Pocket Communications Inc.) foreign-ownership levels.
In its informal request for commission action, filed Jan. 30, NatTel told the FCC “new information has come to light which is materially inconsistent with previous representations about foreign ownership made to the commission by DCR and its parent company Pocket Communications.” This information, according to NatTel, involves the percentage of foreign funding Pocket reported to the Securities and Exchange Commission last December in its amended Form S-1 but allegedly did not report to the FCC in its Nov. 27 application update.
“Although less than 25 percent of the actual number of shares issued to Pocket shareholders may be owned by foreigners, it appears from the Form S-1 that almost 97 percent of the money raised by Pocket is from foreigners,” NatTel wrote. “Since the Wireless Telecommunications Bureau did not undertake a factual inquiry into NatTel’s [previously filed and summarily dismissed] allegations [against Pocket], and given the new information about Pocket in the Form S-1, the commission should act informally and remand this entire matter immediately to the WTB for reconsideration and a factual investigation into NatTel’s claims raised in the petition to deny.”
NatTel alleged that 95.7 percent of the capital raised by Pocket and attributable to debt from 1994 through 1996 was from foreign entities “and that foreigners provided all of [Pocket’s] $143 million auction down payment to the commission.” NatTel named L.M. Ericsson, Siemens Stromberg-Carlson, Masa Telecom Asia Investment, Pacific Eagle Investments, Multinational Technology & Business Ltd. and LCC L.L.C. as the main foreign contributors; NatTel admitted, however, that LCC is a Delaware limited liability that “may” be controlled by foreign owners.
“These charges are still without basis,” answered Jim Titzell and Kevin Inda of Pocket. “The FCC understands the nature of our debt, and this is all debt and not equity. The informal filing is without standing, it is untimely and it is unfactual.”
