Cingular Wireless L.L.C. said it has closed on an acquisition of 34 PCS licenses covering approximately 83 million potential customers from NextWave Telecom Inc. for $1.4 billion. Cingular noted that all claims of the Federal Communications Commission and third parties related to the licenses have been satisfied, including $714 million owed by NextWave to the FCC for the licenses that was paid directly out of the $1.4 billion.
“Closing this transaction is a significant milestone for Cingular,” said Ralph de la Vega, chief operating officer for Cingular. “This spectrum will greatly benefit our customers, allowing us to deliver additional products and services, expand coverage in key markets and better accommodate overall future growth.”
NextWave Chairman and Chief Executive Officer Allen Salmasi added the deal will strengthen NextWave’s capitalization and positions the company to complete its reorganization. NextWave still controls C- and F-block licenses in 80 markets and has repeatedly said it plans to launch a wireless broadband service using CDMA2000 1x EV technology.
