Subject: [NEXTEL-1] NextWave Agrees To Keep FCC Informed But Cites Concerns

From: [email-masked]
Date: Mon, 23 Jun 2003 16:30:12 -0400

NextWave Agrees To Keep FCC Informed But Cites Concerns
BY MARK ROCKWELL
JUNE 23, 2003

NextWave Telecom has agreed to keep the FCC informed about its developing business
deals as part of a court's oversight of the company's bankruptcy proceedings. The
court on Friday approved the company's plans to work with a venture capital firm
to further develop a national wireless data network, even after FCC objections.

The U.S. Bankruptcy Court for the Southern District of New York last week approved
NextWave's plans to work with Clarity Partnership, a Los Angeles-based venture
capital firm, to acquire more spectrum to create a national wireless data network.

However, the company and the FCC seem to be having increasing difficulty with
communications over what is expected of NextWave at the FCC as the company
proceeds with bankruptcy proceedings.

In a Bankruptcy Court briefing obtained by Wireless Week, NextWave argues the FCC
is attempting to disrupt NextWave's reorganization efforts. The FCC had objected
to the company's Clarity Partnership, saying NextWave hadn't said how the
partnership would affect reorganization plans.

'The single objection filed ... by the FCC does not even purport to demonstrate
that its creditor interests will be harmed or its regulatory authority compromised
if the motion is granted. This objection does, however, seek to disrupt NextWave's
reorganization plans.'  The reply filing made by NextWave at the court to the
FCC's objection indicates the FCC is concerned that NextWave has shifted its plans
from providing voice services to data services. NextWave contends it has made
abundantly clear, for some time, that it intends to build a wireless national
network that supports both voice and data and that no one-the FCC, its creditors
and equity security holders-are being harmed in the plan.

The reply filing says: 'In the objection, the FCC chides the debtors [NextWave]
for 'apparently no longer intending to propose a plan involving voice services,
the cornerstone of their prior two plans of reorganization, and now appears to
have embarked on a different path, in the which the basis of their (as yet unseen)
business plan will be broadband wireless.'

NextWave contends its plan has been 'continuously and openly announced for
years...' The company cites numerous articles in publications, including Wireless
Week, dating back months and build-out plans filed at the FCC since October of
2002 that indicated its plans.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=3&pubdate=06/23/03

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