YOU ARE AT:Archived ArticlesC-BLOCK PCS BIDDERS PUT PRESSURE ON NEXTWAVE

C-BLOCK PCS BIDDERS PUT PRESSURE ON NEXTWAVE

WASHINGTON-C-block personal communications services bidders Antigone Communications L.P. and PCS Devco Inc. continued to put NextWave Personal Communications Inc.’s feet into the fire regarding its pending C-block licenses. This time it asked the Federal Communications Commission Dec. 6 to force the PCS hopeful to reveal information it redacted Nov. 29 when answering the commission’s recent barrage of questions.

The petitioners want NextWave to make public the entire text of its convertible loan and security agreement from Qualcomm Inc. and its agreement to buy equipment from that manufacturer. Antigone and Devco claimed they could not comment effectively on the documents because market-trial, equipment-pricing and “auction conclusion” information was missing.

Following on its original petition-to-deny charges of excessive foreign ownership and influence by South Korean entities, the two also want to see complete texts regarding a strategic supply agreement, a letter agreement and a vendor credit facility with LG InfoComm; a commitment letter with ILJIN Corp. and Samsung; and a loan agreement with South Korean concern Pohang.

“In summary, petitioners respectfully suggest that NextWave be required to produce the named documents in unredacted form (or, in the case of the new Pohang loan agreement, at least to certify that redaction is only to protect D-, E- and F-block bidding strategies) and that petitioners be afforded an opportunity to comment after the unredacted comments are produced,” Antigone and Devco concluded.

The companies also submitted joint comments regarding the two ex parte phone conversations between NextWave personnel and FCC officials regarding the pace and the final outcome of the C-block license resolution.

“NextWave’s ex parte contacts demonstrate a palpable lack of regard for the commission’s rules and for [Wireless Telecommunications Bureau chief Michele Farquhar’s] and [General Counsel Bill Kennard’s] obligation to remain impartial in order to protect the integrity of the commission’s processes,” they wrote. They pointed out that all NextWave personnel involved in the calls had either commission, agency or Capitol Hill experience; and that they knew the rules covering restricted conversations.

Antigone and Devco outlined several instances in which the commission either fined or denied licenses based on illegal conversations between companies and FCC officials, and they asked for either a hearing to discuss NextWave’s qualifications to be a licensee or a hefty fine and denial of all licenses.

ABOUT AUTHOR