WASHINGTON—Two winning bidders in the re-auction of bankrupt NextWave Telecom’s personal communications services (PCS) C- and F-block licenses are protesting the settlement negotiations occurring between large nationwide carriers, NextWave and the government.
“As we recall, the C- and F-block PCS licenses were originally earmarked by the [Federal Communications Commission] for American-owned small businesses in order to satisfy the intent of Congress. The sad fact is that most of these C- and F-block licenses that were set aside for small businesses are now in the hands of a select few international behemoth telecoms. It galls us to witness the FCC privately negotiating with these same select few behemoth telecoms for licenses once set aside for small businesses. Not only have true small businesses been treated as second-class citizens in this auction, we have been frozen out of all negotiations concerning these very same licenses. We should be treated fairly and equitably and given the same options and rights as any of the other winning bidders in the [NextWave re-auction.],” said Vincent D. McBride and Scott D. Reiter.
The carrier coalition involved in the negotiations consists of the bidders for 72 percent of the licenses and 93 percent of the money, said a source close to the negotiations.
“Obviously the commission and NextWave have felt comfortable dealing with this coalition. This was an attempt to bring together those with the most at stake and keep the group manageable,” said the source.
Another person close to the NextWave settlement negotiations said there was nothing for McBride and Reiter to negotiate, especially since the current deal calls for all of the auction winners to be able to pay on the same terms and conditions as the larger carriers.
