REDMOND, Wash.-AT&T Wireless Services Inc. amended the terms of its participation in Alaska Native Wireless, which was its designated entity bidding partner in the Federal Communications Commission’s attempt to re-auction NextWave Telecom Inc. and Urban Communications PCS Ltd. Partnership spectrum early last year. ANW was the highest bidder in the auction on licenses totaling $2.9 billion.
Under the revised terms, AT&T Wireless and ANW will be required to make a series of payments and distributions to the other ANW investors no later than April 30, 2003 that will be fully funded with cash held by ANW at the time of the amendment. AT&T Wireless said the amended agreement will reduce its potential obligation to purchase ANW interests held by other investors to $145 million.
If ANW is eventually awarded the licenses it won during the re-auction, AT&T Wireless would fund the balance of the remaining purchase price for the licenses.
AT&T Wireless said it anticipates taking an $108 million charge in the fourth quarter to reflect the difference between amounts accrued for its potential obligation under the original terms of the venture and its current obligation associated with the amendment.
