Subject: [NEXTEL-1] NextWave, Clarity seek pact for spectrum deals

From: [email-masked]
Date: Sun, 01 Jun 2003 18:39:07 -0400

NextWave, Clarity seek pact for spectrum deals
Fri May 30, 2003 12:17 PM ET

PHILADELPHIA, May 30 (Reuters) - NextWave Telecom Inc. NXLC.PK on Friday sought bankruptcy court permission to forge a partnership with venture capital firm Clarity Partners LP to explore the purchase of up to $150 million in new wireless airwaves capable of handling new generation services.
NextWave, which is in talks to sell about 20 percent of its wireless airwaves to Cingular Wireless, said it has been actively mulling the purchase of other airwaves that would complement its existing holdings, and make easier its plans to deploy a nationwide broadband wireless service.
Wireless companies have been upgrading the capacity of their networks to handle new services such as wireless data and video services which can be bountiful profit-makers.

NextWave, which is in bankruptcy protection and recently won a long court battle to keep the wireless licenses, said it has studied several alternatives that would allow it to efficiently use their spectrum licenses, "including selling, leasing or swapping some of their spectrum, and possibly supplementing their licenses with the acquisition of complementary spectrum."

Clarity, based in Beverly Hills, California, is a private equity firm focused exclusively on investments in the communications and media industries.
If the proposed partnership with Clarity is approved by the bankruptcy court, NextWave said the private equity firm would form and fund an acquisition vehicle, IPCom, to acquire spectrum suitable for the deployment of broadband wireless service.

The companies aim to develop an acquisition strategy by July 31. The total sum of organizational and operational expenses of IPCom would not exceed $150 million.  NextWave would pay Clarity an initial work fee of $1 million, NextWave said in a filing with the U.S.

Bankruptcy Court for the Southern District of New York.
NextWave, meanwhile, continues talks to sell some of its wireless spectrum to Cingular, the No. 2 wireless carrier behind Verizon Wireless, for about $1.5 billion in cash, sources close to the talks said. A deal could come as early as next week, the sources said.

NextWave would maintain spectrum with nationwide coverage, but would provide Cingular a slice of airwaves, the source said. Cingular is a joint venture of BellSouth Corp. BLS.N and SBC Communications Inc. SBC.N

http://reuters.com/financeNewsArticle.jhtml type=governmentFilingsNews&storyID=2852794
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