WASHINGTON-In his continued attempt to regain the C-block American Samoa personal communications services license taken back by the Federal Communications Commission due to default, Jack Robinson, president of National Telecom PCS Inc., has charged a financial-fundraiser and a major C-block winner with collusion during that auction.
A second supplement to a pending petition to deny Pocket Communications Inc.’s C-block licenses filed Oct. 3 by Robinson said that CE Capital Consultants Inc. of Alexandria, Va., which held
contracts with both NatTel and Pocket for fund-raising services, apprised Pocket during the last few rounds of C-block bidding of NatTel’s Pacific Rim strategy, causing Pocket to bid up those markets, including American Samoa, and for NatTel to commit an additional $51,000 to win back that particular license.
The financial contract between NatTel and CE Capital, signed March 12, claimed that CE would help raise $25 million for NatTel to aid in its quest for C-, D-, E- and F-block PCS licenses and for 900 MHz specialized mobile radio licenses. As payment, CE Capital would claim a certain set percentage per million dollars if it were successful in its efforts. CE Capital also had PCS contracts with Pocket this year and last, something Robinson said he did not know at the time. Robinson also alleged that CE Capital became a Pocket stockholder in April, and Pocket began its Pacific Rim campaign in early May.
“In fact, if NatTel had been apprised that CE Capital was at the time raising financing for Pocket, the second-largest bidder, NatTel would never have entered into the agreement in the first place, let alone provided its confidential business plan and bidding strategy to CE Capital,” Robinson said.
CE Capital had been instrumental in matching Pocket with Asian investor Masa Telecom Inc., Robinson charged. In addition, Robinson wrote that some of the possible investors being courted for NatTel by CE Capital were Pocket investors as well, prompting Pocket to tell the fundraiser “that there was no need to raise $25 million for NatTel when those same funds could be invested in Pocket, and Pocket itself could go bid on those Pacific markets.”
Pocket spokesman Kevin Inda answered such charges with, “This is not something we are losing sleep over. The filing has no merit, and there was no collusion. We’re anxious to get moving on our licenses, and we hope the FCC will dismiss” this filing. CE Capital could not be reached for comment.
Following the close of the auction, Robinson said he tried to contact CE Capital about fulfilling its financial contract, but he has yet to hear from that company; he is considering litigation outside of pending FCC complaints.
“We are looking at all legal action now, including breach of contract,” Robinson said. “This was a complete charade. I want to put Dan Riker (president of Pocket) and Dennis Tomes (president of CE Capital) on the stand during an evidentiary hearing.”
