Subject: [NEXTEL-1] Cingular To Pay $1.4Bn For NextWave Licenses

From: [email-masked]
Date: Wed, 30 Jul 2003 10:43:39 -0400

Cingular To Pay $1.4Bn For NextWave Licenses

Summary

Cingular Wireless agreed to buy wireless spectrum licenses from bankrupt NextWave
Telecom for about USD 1.4 billion, said people familiar with the matter. The
companies plan to file the agreement with the US Bankruptcy Court in White Plains,
New York, one person said. The bid would need approval from the court. The
acquisition would help bolster the presence of Cingular, a venture of SBC
Communications and BellSouth in cities such as Boston, Los Angeles and Washington.
NextWave has been offering to sell some of its 90 wireless licenses, valued at
about USD 6.5 billion, since the US Supreme Court handed it ownership of the
airwaves in January. for additional details.
Cingular Agrees to Buy
NextWave Licenses for $1.4

=================================================================================
July 30 (Bloomberg) -- Cingular Wireless LLC, the
second- largest U.S. mobile-telephone operator,
agreed to buy wireless- spectrum licenses from
bankrupt NextWave Telecom Inc. for about $1.4
billion, said people familiar with the matter.

The companies plan to file the agreement as early
as today with the U.S. Bankruptcy Court in White
Plains, New York, one person said. The bid would
need approval from the court.

The acquisition would help bolster services offered
by Cingular, an Atlanta-based venture of SBC
Communications Inc. and BellSouth Corp., in some
cities. NextWave has been offering to sell some of
its 90 wireless licenses, valued at about $6.5
billion, since the U.S. Supreme Court handed it
ownership of the airwaves in January. Cingular lacks
coverage in Boston, Los Angeles and Washington
D.C., where NextWave has licenses.

Cingular ``would be able to potentially build out its
own network in markets where it currently has
holes,'' said Peter Friedland, an analyst at W.R.
Hambrecht & Co. in San Francisco, who doesn't own
either companies' shares. ``A carrier ultimately
wants to have control of its own network,'' he said.

Shares of Hawthorne, New York-based NextWave
rose 33 cents, or 13 percent, to $2.95 at 9:34 a.m.
in over-the-counter trading. Shares of San
Antonio-based SBC rose 25 cents to $23.82 in New
York Stock Exchange composite trading. Atlanta-based BellSouth climbed 12 cents to
$25.25.

NextWave Senior Vice President Michael Wack declined to comment. Cingular
spokeswoman Jennifer Bowcock also declined to comment. Sell Some, Keep Some

NextWave has said it may sell some of its spectrum, which has lost more than half
its value since 2001, and use the money to start its own wireless network with
some of the remaining licenses. NextWave has licenses in the 10 largest U.S.
markets, including New York.

The New York spectrum isn't part of the proposed sale to Cingular, said a person
familiar with the matter.
The Federal Communications Commission, which awarded the airwaves to NextWave in
1996 auctions, sought to take back the spectrum after the company filed for
bankruptcy in 1998. The Supreme Court in January ruled that NextWave could keep
the licenses. The FCC must also approve the agreement because it involves a
transfer of licenses.

Other Buyers

The companies have been trying for the past month to get preliminary FCC approval
for the transaction, said Igor Volshteyn, an analyst at broker-dealer Tejas
Securities Group, who personally owns NextWave shares.
An FCC spokesman didn't immediately respond to a call for comment.
The airwaves, worth as much as $16 billion in 2001, have declined in value to
about $6.5 billion, Legg Mason Wood Walker analyst Craig Mallitz said in May.

Verizon Wireless Inc., the largest mobile-phone provider, AT&T Wireless and
Cingular all previously sought the airwaves.
Bedminster, New Jersey-based Verizon, which bid $8.8 billion for some NextWave
licenses in 2001, has said it may try again to purchase some. The FCC let Verizon
and its competitors cancel their original bids last year as the licenses declined
in value and mobile-phone industry growth slowed.
``All the wireless carriers are always interested in expanding their capacity,''
said Jeff Kagan, an independent telecommunications analyst in Atlanta. ``It's a
question of meeting the customer's expectations.''
Last Updated: July 30, 2003 09:41 EDT

http://quote.bloomberg.com/apps/news?pid=10000103&sid=ae56RCugfWGY&refer=news_index

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for Your HP, Epson, Canon or Lexmark
Printer at Myinks.com. Free s/h on orders $50 or more to the US & Canada. http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/sO0ANB/LIdGAA/ySSFAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/