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FCC seeks NextWave stay
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August 6, 2001: 4:34 p.m. ET
Agency says no action should be taken before Supreme Court review
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NEW YORK (CNNfn) - The Federal Communications Commission Monday asked a federal appeals court to postpone a decision that could allow bankrupt NextWave Telecom Inc. to reclaim wireless communications licenses.
The U.S. Court of Appeals for the District of Columbia ruled on June 22 that the FCC acted illegally when it repossessed licenses from the mobile wireless company in January 2000 after it failed to make timely payments.
The FCC already had tried to resell the licenses for nearly $16 billion in January, but the results of that auction have been thrown off course pending the resolution of this case or the reaching of a settlement, if any.
The agency Monday said it wanted the U.S. Supreme Court to review the case.
"High court review will protect the integrity of the FCC's auctions program, which Congress has chosen as the best method of assigning scarce and precious spectrum resources to those that will put them to their most productive use," FCC Chairman Michael Powell said in a statement.
A NextWave spokesman had no immediate comment Monday.
In documents filed with the appeals court, the FCC said allowing the June decision to take effect would "likely have significant adverse consequences for the government and will likely result in the unnecessary expenditure of governmental, judicial and private party resources."
The winners in the January auction -- including Verizon Wireless (VZ: down $0.41 to $53.27, Research, Estimates) and VoiceStream Wireless -- have urged the government to open settlement talks with NextWave to preserve the outcome of the auction by offering the company as much as $5 billion to abandon its claim to the airwaves.
Analysts have said they expect a settlement, NextWave executives have said they are not interested in settling or selling the company or the airwaves.
Separately, Nextwave Monday confirmed it has secured $5 billion in financing, giving it the ability to pay back the more than $4 billion it owes the government for the wireless communications licenses. The company plans to detail the new financing in plans it is close to filing with the U.S. Bankruptcy Court in White Plains, N.Y, said George Evanko, a spokesman for the firm.
"They are hoping to finalize the reorganization plan which can be filed with the court this week and the company will be offering a statement when details of the plan are finalized," he said.
NextWave had bid $4.7 billion in a 1996 government auction of licenses needed to operate personal wireless networks. But the company paid just $500 million before filing for bankruptcy protection. 
-- from staff and wire reports
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