WASHINGTON-A federal judge last week approved a new antitrust settlement between the Justice Department and Nextel Communications Inc., allowing Nextel to acquire more 900 MHz dispatch radio licenses in 14 major markets while largely scotching-for now-its deal to buy bankrupt Geotek Communications Inc.’s wireless assets for $150 million.
Last Thursday’s ruling by U.S. District Judge Thomas Hogan modifies a 1995 consent decree, which limited Nextel’s access to 900 MHz dispatch licenses in 14 top cities because the Reston, Va., firm dominates the 800 MHz dispatch market.
The 1995 decree was to run for 10 years. Now it will end Oct. 30, opening the way for Nextel to acquire all 191 Geotek licenses if Geotek creditors choose to continue doing business with Nextel rather than accepting a new offer before that date.
Hogan deferred to Justice, which argued the potential of new dispatch services at 220 MHz and on mobile phone frequencies justified relaxing the decree.
However, government antitrust lawyers admitted to Hogan at the court hearing that new entry into the dispatch market had not occurred and said they could not guarantee that it would.
The Justice-Nextel pact was opposed-for different reasons-by scores of dispatch radio companies, mobile phone carriers and Geotek creditors.
