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LAWMAKERS, C-BLOCK BIDDERS SIDE WITH NEXTWAVE IN HIGH COURT CASE
June 24, 2002 by Mary Greczyn|Miscellaneous

NextWave told U.S. Supreme Court in brief filed Fri. that FCC’s revocation of its PCS licenses for missed payment was “obvious violation” of Bankruptcy Code. Friend-of-court briefs included one by 7 members of Congress, including Senate Judiciary Committee Chmn. Leahy (D-Vt.) and ranking Republican member Hatch (R-Utah). In lengthy filing, bankrupt C-block bidder disputed arguments by Commission in its appeal of U.S. Appeals Court, D.C., ruling last year. FCC argued to high court earlier this year that nothing in Bankruptcy Code was at stake in D.C. Circuit’s NextWave ruling that barred agency from enforcing regulatory conditions on disputed wireless licenses. Sec. 525 of Bankruptcy Code bars govt. agencies from revoking licenses of debtor or bankrupt entity solely because they haven’t paid dischargeable debt. “The FCC’s only answer to the plain text of Sec. 525 is to spend page after page restating, in many guises, the single point that Sec. 525 should not apply because NextWave’s licenses were revoked for regulatory rather than pecuniary reasons,” NextWave said. “But Sec. 525 contains no regulatory exception for the FCC, express or implied, and creating one would be at odds with Sec. 525 and the code generally.”

Topics:Wireless Spectrum Auctions