WASHINGTON-Citing “public interest,” NextWave Personal Communications Inc. has petitioned the Federal Communications Commission to not only “temporarily” waive its 25 percent foreign-ownership cap for 90 days following implementation of the World Trade Organization agreement that could go into effect Jan. 1, 1998, but to put NextWave’s restructuring plan-the condition on which its final C-block license receivership will be based-on hold as well. If such waivers were granted, NextWave could pursue additional offshore funds to build out its network.
Writing that adoption of WTO rules, which would allow 100-percent indirect foreign ownership of commercial mobile radio systems, renders the FCC’s mandate that NextWave restructure its foreign ownership by July moot, the company pointed out that the commission has the power to grant both wishes on the grounds of “special circumstances.” Included in its filing were several references to a March 4 speech made by FCC Chairman Reed Hundt regarding the need for increased foreign investment if wireless companies are to build out new services on schedule.
“The capital restructuring contemplated by the licensing order would involve a considerable amount of time and expenditure of substantial resources, thereby impeding successful attainment of network construction goals,” the filing said in part. It is no secret that NextWave is experiencing a financial crunch and that its plans to restructure have not been going as smoothly as had been anticipated.
“The unique situation of NextWave, the largest bidder in the newly established entrepreneur’s personal communications services block, facing tremendous capital needs during a brief period before the U.S. commitment to the WTO agreement comes into force, constitutes the contemplated `special circumstances,’ ” NextWave’s attorneys wrote. “Failure to grant this temporary waiver would force a costly and complex restructuring in order to comply-for only a few months-with a policy that the United States has already committed to change.”
Following adoption of WTO rules, NextWave conceded that “the commission will be, if it so chooses, able to consider whether, notwithstanding the WTO agreement, there is any basis for imposing special origin of capital requirements upon NextWave.”
