WASHINGTON-C-block personal communications service licensees will have an additional seven weeks to file with the Federal Communications Commission their choice-if any-of the four financial restructuring options offered by the commission last September.
The Jan. 15 election date has been pushed back to Feb. 26, due to the number of petitions for reconsideration submitted regarding the installment-payment restructuring order that must be resolved prior to any decision making.
The Personal Communications Industry Association was not pleased with the commission’s action. “Anything that perpetuates the uncertainty in the marketplace is unfortunate,” said spokesman Jeff Cohen. “We were hopeful that this process would have moved along more quickly.”
Further significant changes to the original order are unanticipated. Licensees still will be bound to resume license payments March 31 and any licenses returned to the commission will be reauctioned Sept. 29.
C-blockers expressed hope there would be enough time between the date the FCC resolved all reconsideration issues and the new election date to digest any changes.
“Our decision to delay the election date should not be misconstrued,” wrote FCC Commissioner Susan Ness in a statement separate from the public notice. “It should not be read as a signal that substantial changes to the options devised in September are probable. Based upon the record to date, I believe it is unlikely that such changes will be made.” Ness also mentioned that pending petitions for reconsideration will be addressed in enough time to allow restructuring candidates and their financial partners to come to final decisions.
Fellow Commissioner Michael Powell concurred, writing, “I believe it is critical that we complete our reconsideration of this important matter prior to the parties making their election. It would be unwise for anyone to read into this extension a willingness by this new commission to vary significantly from the commission’s second report and order in response to the pending petitions for reconsideration, and I caution parties and the financial markets not to do so.”
Major C-block players are withholding comment on any effect the date change might have on pending restructuring plans, but it seems like this decision will not have much impact since most plans already have been made. At least three licenses have been turned in to the commission.
NextWave Telecom Inc. and Omnipoint Corp., both of which have petitions for reconsideration pending, are keeping their cards close to the vest. Pocket Communications Inc., still in Chapter 11 bankruptcy, is considering keeping only a few of its 43 licenses, with the possibility of turning the rest back to the commission for amnesty. GWI PCS Inc., also in bankruptcy, could not be reached for comment. Others are waiting for reconsideration issues to be resolved to see if the commission’s original four options could be sweetened, especially if the FCC decides to revalue C-block licenses at current market rates.
