FCC sorts out US 3G cock-up

Nextwave still not happy...

By Heather McLean, 24 January 2002 15:10

NEWS The Federal Communications Commission is set to return most of the billion dollar deposits paid by telcos for 3G licenses this Friday. The deposits were paid as part of a deal set before the government had reclaimed them from the bankrupt owner Nextwave. US telcos paid $3.2bn in deposits to the US government this time last year before it had taken the licenses away from Nextwave. The FCC was due to buy the licenses off Nextwave for a bargain price then resell them to the telcos for $15.85bn as part of the contract, which was valid until 31 December last year. However, Nextwave refused to sell and Congress adjourned for Christmas before giving the FCC permission to go ahead with the buy, invalidating the contract with the telcos. But despite Nextwave's remonstrations, the FCC is only repaying part of the deposits in case Congress makes its mind up in favour of the telco deal.

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