WASHINGTON-Sen. Ernest Hollings (D-S.C.) late last week raised questions about Voice-Stream Wireless Corp.’s eligibility to bid for mobile-phone licenses in the Dec. 12 auction, citing possible foreign-ownership problems.
In a Nov. 30 letter to Federal Communications Commission Chairman William Kennard that was released to the press late Friday, Hollings said a $5 billion cash transfer from Deutsche Telekom AG to VoiceStream may run afoul of foreign-ownership rules barring firms more than 25-percent-owned by a foreign government from holding FCC licenses. The FCC has the discretion to waive the 25-percent rule, however.
This fall, Hollings unsuccessfully fought to cut off the waiver option, upset that Deutsche Telekom-more than 50-percent owned by the German government-might compete against U.S. wireless firms.
A VoiceStream official said the $5 billion investment amounts to DT having an 11.5-percent interest in VoiceStream, not the 39-percent stake claimed by Hollings.
Hollings asked the FCC to issue a declaratory ruling on the DT investment in VoiceStream.
Kennard plans to respond early this week to Hollings’ letter.
