FOR IMMEDIATE RELEASE                                   Contact: David Fiske (202) 418-0513              
November 16, 2001				   	                Brian Marriott (202) 418-7121
 								     Maureen Peratino (202) 418-0506


STATEMENT OF FCC CHAIRMAN MICHAEL POWELL
ON CONCLUSION OF DISCUSSIONS ON NEXTWAVE LICENSES

I am pleased to announce that discussions have concluded between the government, the 
auction 35 winners and Nextwave.  Under the terms of the agreement: (1) Nextwave will 
surrender all the C and F block licenses it had previously won;  (2) the wireless carriers that won 
these licenses in the Auction 35 reauction will receive them and be able to put them into use for 
the public shortly; and (3) the American taxpayer will receive $10 billion, more than twice the 
amount than would have been received had Nextwave kept the licenses in accordance with recent 
court rulings.

The Commission has fought aggressively for years to recapture these licenses, insisting 
they were public assets that could not be held by private companies (and insulated from 
repossession in bankruptcy) that did not comply with the terms of the auction.  Regrettably, the 
D.C. Circuit has interpreted the law differently, and without a prospective legislative change, the 
public will bear this risk in future auctions.  That aside, the circumstances that presently exist 
drove the Commission to seek a resolution that would capture as much value for the public as 
possible.  This settlement does just that.

At bottom, it is a deal that serves the public interest, for it will get licenses out from under 
litigation and into the market, where the public will benefit from improved service quality, 
enhanced coverage and greater reliability.  Moreover, the treasury will reap $10 billion at a time 
in which these funds are sorely needed to address pressing national problems.

Before the agreement is effective, it must be ratified by the Department of Justice, which 
we expect.  In addition, Congressional action will be required to implement the settlement.  It is 
only right that the Congress have an opportunity to pass on the terms and render its judgment as 
to the benefits for American consumers. 

This has been a long and arduous process involving many different parties and divergent 
interests.  It has not been easy reaching a mutually agreeable settlement. Some will argue that the 
result is not perfect, but I believe that it is the best that can be achieved under the circumstances 
to maximize the benefit for the public.

- FCC - 

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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).