WASHINGTON-An amendment that had the potential to change the outcome of the C-block auction has been killed.
The C-block personal communications services amendment was attached to a slamming bill forwarded by the House Commerce Committee. But Sen. John McCain (R-Ariz.), chairman of the Senate Commerce Committee, refused to accept it. The (C-block) amendment would have turned the C-block auction process on its face.
If the amendment had passed, everyone that participated in the C-block PCS auction, regardless of their status-those that paid their debts, those that turned back their licenses June 8, or those that filed for bankruptcy protection-would have received a bidding credit equal to the amount they paid the FCC and then could participate in a re-auction. The amendment statutorily scheduled the re-auction for March 24.
The changes were not welcomed at the Federal Communications Commission where it is believed the June 8 election options were “fair and equitable.”
Conversely, NextWave Telecom Inc., which has been highly critical of the FCC’s handling of the C-block debacle, welcomed the amendment. “We support the [C-block amendment] legislation. You can see how a fresh start is in everybody’s interest,” said Michael Wack, vice president of regulatory affairs with NextWave.
For its part, CTIA did not take a position on the issue because a members’ conference call proved its constituents were divided. Steven K. Berry, senior vice president for congressional affairs, said he called McCain’s staff to inquire about the senator’s position and was told McCain did not like the amendment. When asked CTIA’s position, Berry said he told McCain’s staffer CTIA did not take an official position but that “members who contacted me were not supportive of the amendment either in the slamming bill or as a stand-alone measure.”
Industry insiders are divided as to whether this phone call had any impact on McCain, but Mark Buse, policy director for the Senate Commerce Committee, said it did not. “McCain never makes his position based on an association’s position. No lobbyist has the ability to tell McCain to kill something,” Buse said.
Another player working to kill the amendment was Omnipoint, which passed around talking points on the amendment “to clarify our position on how the amendment would hurt Omnipoint and players like Omnipoint,” said Sharon Caldwell, an Omnipoint lobbying contact. In fact, the talking points said the amendment “could be disastrous to companies like Omnipoint. Companies that are operational should not risk having to pay more in the course of a legislative bailout,” the paper read.
House version still uncertain
While McCain’s position against the amendment is clear, the fate of the amendment and its parent, the slamming bill, in the House of Representatives is uncertain. At press time, as Congress was racing to finish for the year, the prospects for the slamming bill were given contrasting odds.
On one side, some members told the House leadership to drop the C-block language so the slamming bill could be enacted and they could go home to their districts having passed consumer-friendly legislation.
On the other hand, some members were said to be upset by the FCC’s handling of the C-block and a budget estimate from the Congressional Budget Office. Saying the amendment would cost the government $600 million, they favor passing the bill with the C-block amendment and forcing the Senate to a conference.
In other C-block action, General Wireless Inc. last week emerged from bankruptcy after a federal appeals court refused to grant a stay of its re-organization plan. “We have considered the petition for stay of the bankruptcy court’s orders and determined that it should not be granted,” said the United States Court of Appeals for the Fifth Circuit.
Meanwhile, GWI has completed its reorganization. “This is a momentous day for [GWI] and the wireless industry as a whole,” said GWI President Roger D. Lindquist.
GWI is a Dallas-based operator of 14 PCS licenses, covering approximately 21 million people in the San Francisco, Miami, Atlanta and Sacramento markets.
