Nextel Communications Inc. filed comments with the Federal Communications Commission disputing NextWave Telecom Inc.’s and Cingular Wireless L.L.C.’s plans seeking a waiver concerning $170 million in interest on 34 C- and F-block PCS licenses Cingular is attempting to acquire from NextWave for $1.4 billion.
Nextel claims the waiver “violates both the spirit and the rules of the C and F block licenses that were designed for small business enterprises.” In addition, Nextel noted Cingular’s parent companies, SBC Communications Inc. and BellSouth Corp., both “aggressively opposed previous proposals before the commission to provide C and F block licensees with relief from the conditions laid out in the commission’s rules.”
Nextel also contends that Cingular’s conduct raises concerns about its “character” qualifications to acquire the licenses and cited Cingular’s reported failure to cooperate in resolving interference to a public-safety communications network in Maryland.
In a statement to RCR Wireless News, Cingular said it was reviewing the comments challenging its purchase, noting on initial review “Nextel’s comments are totally without merit and appear to be motivated by Nextel’s unhappiness with Cingular’s objection to Nextel’s attempt to obtain spectrum for free through its spectrum swap scheme.”
Cingular added that the NextWave transaction has already been approved by the U.S. Bankruptcy Court and has been publicly supported by the FCC and the Department of Justice.
