Arguments begin today in NextWave case

Oral arguments will begin today at the Supreme Court over the long-standing battle between the Federal Communications Commission and NextWave. At issue is whether the bankruptcy code overrides the FCC’s rules for congressionally authorized spectrum auctions. The FCC believes that it had the right to cancel NextWave’s licenses in 2000 because it failed to make timely payments while it entered into bankruptcy.

This complex legal issue has held a number of wireless operators who bid on the cancelled spectrum in January 2001 in legal limbo. The mobile-operator industry bid more than $16 billion for NextWave’s licenses, but the FCC has yet to issue the licenses until it resolves its legal wrangle with the Supreme Court. Since then, operators have lobbied the FCC, Congress and the Bush administration to allow them to opt out of the auction. The FCC recently issued a public notice seeking comment on how operators should be allowed to opt out.

Yesterday, a bipartisan group of 43 lawmakers from the House of Representatives sent a letter to the FCC urging it to move quickly and implement an opt-out process for the auction bidders.

“We support your public notice seeking comment on Auction 35 opt-out procedures, however, we are very concerned about the extended comment period for this proceeding,” the lawmakers said. “We urge you to expedite this matter an implement an opt-out regime quickly so that the wireless industry can get back to the business of serving customers.”