FCC likely to offer four options to fix troubled wireless auction
Article Abstract:
The FCC probably will adopt a four-part plan designed for companies who claim they cannot pay for their wireless communications licenses. Terms would allow the C-block auction bidders to select from among four options. The first plan calls for the bidders to delay their installment payments on the full bid amount until 1998. The second plan would allow the companies to return 50% of their licenses for reauction in exchange for a lower debt. A third option would allow the companies to return all the licenses for reauction and receive full amnesty. A recent fourth plan, which has gained popularity with the FCC commissioners, would enable bidders to pay immediately for an affordable amount of licenses and return the other licenses for reauction. The 1996 C-block auction totaled $10.2 billion in bids for wireless communications licenses, but some companies say they now cannot afford their obligations.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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FCC wireless auction may reap $7 billion less
Article Abstract:
The FCC could collect only $3 billion to $5 billion in wireless communications license fees from the 1996 C-block auction, according to Congressional Budget Office projections. This compares to the original $10 billion offered by bidders, who are blaming stubborn capital markets and dropping wireless stock prices for the turnaround. Several top bidders have threatened to file for bankruptcy unless the FCC reduces their obligations or extends their payment schedule. The C-block discrepancy would not affect the 1997 budget accord between Congress and the White House, which anticipates $24.3 billion in collections from forthcoming FCC auctions. Future budgets would have to absorb the shortfall, however. The FCC is considering options that include amnesty, reclaiming a portion of the licenses for re-auctioning and offering incentives for bidders to relinquish their licenses.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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QuestCom unit defaults on payment for winning FCC wireless auction bid
Article Abstract:
The FCC announces that BDPCS has defaulted on its $874 million total payment for wireless telephone licenses that the company bid to obtain early in 1996. BDPCS was to pay the FCC 5% of its total bid as of May 14, 1996, and the company's request for a waiver or extension of this regulation was denied the agency. BDPCS successfully bid to acquire 17 separate wireless licenses across several regions of the Western US, including Denver, Seattle, Phoenix and Portland. The FCC has not yet determined whether it will re-auction the BDPCS licenses or offer them to the original next-highest bidder. Analysts expect that other companies may encounter similar difficulties delivering payments to the FCC for the licenses as another 5% required payment approaches.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1996
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