NextWave/FCC wash hands of spectrum struggle: after seven years in limbo, NextWave case nears resolution. But who wins?(Service Providers)(Federal Communications Commission)

Wireless Week, May, 2004 by Rockwell, Mark

WASHINGTON--Analysts pondering the implications of the FCC's settlement with NextWave Telecom say the initial reviews are good for the company, but possibly bad for other spectrum licensees.

The deal finally puts a nail in the coffin of the 7-year-old case, saying that it "extinguishes" any possibility that NextWave could make claims against the commission. The settlement, announced in mid-April by the commission, would require NextWave to relinquish 90 percent of its spectrum. In doing so, the commission looks to recover $1.6 billion in cash, including NextWave's down payment, and anticipates a total of about $4 billion when cash and spectrum recovery are combined.

Some industry analysts wonder how the settlement will affect spectrum value...

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