WASHINGTON-The Federal Communications Commission (FCC) on Thursday gave Verizon Wireless what it has been begging for-relief from the re-auction of the personal communications services (PCS) C- and F-block licenses of bankrupt NextWave Telecom.
“I do not believe the public interest is served by tying up deposits and, perhaps worse, subjecting carriers to the risk of having to produce billions of dollars on short notice if the [FCC] prevails in the U.S. Supreme Court. These factors have produced a financial overhang that makes it difficult for carriers to make much-needed infrastructure investments and service upgrades,” said FCC Commissioner Kathleen Abernathy.
Carriers have 45 days to decide whether to remain in the re-auction or to drop out completely; they cannot pick and choose licenses, as some had wanted. This last part prompted FCC Commissioner Kevin Martin to dissent in part.
“I dissent in part to the decision’s requirement that carriers withdraw from the entire auction to be relieved of any of their obligations. I do not see a need to require carriers to make a single election for all of the markets awarded at auction as a condition to withdrawing from any one market,” said Martin.
Carriers opting out of the re-auction will still be able to obtain the spectrum should it become available either by the government or NextWave. Nextel Communications had suggested that carriers be barred from obtaining the spectrum for three years.
Verizon Wireless has fought long and hard-and has even sued in two different courts-to overturn the re-auction in which it bid nearly US$9 billion.
