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This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).
|June 8, 1998|
STATEMENT OF CHAIRMAN WILLIAM E. KENNARD IN RESPONSE TO NEXTWAVE'S FILING OF BANKRUPTCY
NextWave's announcement underscores again the urgent need for Congress to
make clear that the licenses to use the public's airwaves are public assets, not private property that
can be tied up in bankruptcy. NextWave now seeks judicial permission to break the deal it made
when it bid on the licenses. |
On a day when many licensees have chosen to take advantage of the Commission's C-block restructuring options, it is unfortunate that NextWave has chosen bankruptcy. The FCC's C-block orders provide licensees with significant flexibility in how to restructure their debt obligations and become active competitors in the wireless telecommunications industry. Indeed, an overwhelming majority of C-block licensees have either elected one of the restructuring options or decided to continue under their current payment terms.
The Commission's goal is to promote competition and provide the public with wireless services. But auctions will only be successful at getting licenses to entrepreneurs with good business plans if those licensees cannot ask courts to rewrite the deal. Bankruptcy is a drastic measure that benefits no one.
The Commission is ready to proceed with a C-block reauction and is hopeful that licensees will move forward with providing the wireless services for which the public has been waiting.