WASHINGTON-NextWave Telecom Inc. on Monday passed the final regulatory hurdle when the Federal Communications Commission said it was not in violation of foreign-ownership rules.
“We’re glad that it’s now put to rest,” said Michael Wack, NextWave senior vice president and general counsel.
The FCC’s Wireless Telecommunications Bureau and International Bureau reviewed NextWave’s ownership structure because the company had asked for such a review prior to it filing bankruptcy in 1998.
NextWave’s license grant, after being the successful high bidder in 1996, was held up due to questions regarding its ownership structure. NextWave was ordered to change its ownership structure, but then the United States signed the World Trade Organization Basic Telecommunications Agreement so NextWave asked that its structure be reviewed using those rules. Before the FCC could render a ruling, NextWave filed for bankruptcy, and its long legal battle with the FCC began.
In May, NextWave responded to the FCC’s International Bureau request for an updated ownership structure by saying that no more than 19.1 percent of its stock is owned by foreign individuals or corporations. This includes the 14.5 percent held by foreign individuals and corporations and 4.6 percent held by brokerage banks for individuals with unknown citizenship. This level of 19.1 percent is below the 25-percent cap, said NextWave, and the agency agreed.
