Powell: Congress should approve NextWave settlement

FCC Chairman Michael Powell yesterday told the Reuters news service that the settlement the government crafted with bankrupt wireless NextWave is “in the best interest of the American people,” even as members of Congress expressed their concerns over the deal.

The agreement divided the $15.85 billion raised during the January 2001 spectrum reauction and gave that spectrum to the winning bidders. A federal appeals court ruled the FCC overstepped its authority by putting the spectrum up for reauction when NextWave filed for bankruptcy protection, which led to the settlement. Of the $15.85 billion, NextWave received $5.85 billion, while the FCC received $10 billion. NextWave had originally bid $4.7 billion for the spectrum in 1995.

In a telephone interview with Reuters, Powell said, “I personally think getting $10 billion today that I can put in the bank for that spectrum versus the roughly $5 billion that I might be able to get from NextWave over a 10-year installment period was fiscally better.”

While the settlement has received United States Department of Justice approval, it still must be approved by Congress, which has until Dec. 31 to pass legislation that authorizes the payment to NextWave.

--Glenn Bischoff, senior writer