- India diplomat who touts women’s rights busted for $3 wage to nanny
- MSNBC host Ed Schultz paid $252K by unions in 2012-2013
- Korean War memorial ordered to take down Christian cross
- Billy Graham near death, ‘close to going home to be with the Lord’
- SeaTac, Wash.: City’s new $15 minimum wage heads to court
- Obama mulls support for Islamists in Syria, with conditions
- Obama ‘birther’ theories float, as Hawaii health director killed in crash
- U.S. drone faulted for killing 14 ‘innocent civilians’ at Yemen wedding
- GOP hopes taking shutdown off the table with budget deal will pay dividends
- Chinese Death Star: The moon cited as the perfect launch pad for ballistic missiles
AT&T to buy NextWave, holder of unused spectrum
NEW YORK (AP) - AT&T Inc. has agreed to buy NextWave Wireless Inc., a company that holds the right to use sections of the wireless spectrum that could be used for broadband.
AT&T said Thursday that it’s paying up to $600 million in cash, most of which will go toward paying off NextWave debt. That also includes $25 million for the shares, plus an additional $25 million if certain conditions are met.
Shares NextWave jumped $1.05 to $1.31 per share in over-the-counter trading Thursday morning.
The deal could give AT&T more room on the airwaves for wireless broadband, but there are unresolved problems with some of NextWave’s radio bands. They lie close to frequencies that are used for satellite communications, and interference concerns have prevented them from being used. AT&T has asked the Federal Communications Commission to approve a solution that it says would prevent interference.
The deal doesn’t include all of NextWave’s spectrum. Some Canadian and U.S. holdings will be placed into a new holding company, to be owned by its debtholders.
In its latest regulatory filing, NextWave listed the value of its spectrum holdings at $434 million and its debt at $1.1 billion.
AT&T has been on the hunt for more wireless spectrum, a hunt that led it to agree to buy T-Mobile USA last year for $39 billion. That deal fell through on antitrust grounds, however.
The acquisition of NextWave is also subject to review by regulators. AT&T said that if it goes through, it could be using the spectrum for wireless broadband in three years.
San Diego-based NextWave has had a difficult life. It was spun out from Qualcomm Inc. in 1995. The next year, it bid $4.74 billion to buy the rights to 95 spectrum licenses from the government, big enough to cover nearly 94 million people. But the company couldn’t make its payments and filed for bankruptcy protection.
The FCC took back and re-auctioned the licenses, but NextWave argued that bankruptcy law protected it from seizure of its assets. It took the fight all the way to the Supreme Court, which sided with it. The company emerged from bankruptcy in 2005, a year after it reached a settlement with the FCC.
NextWave sold some of the licenses from the 1996 auction to Verizon Wireless, AT&T Inc., and MetroPCS Communications Inc. It returned others to the FCC.
NextWave’s current spectrum holdings derive from another FCC auction in 2005 and from acquisitions from other companies. It spent $500 million on the license, it said in 2008. It was then also developing wireless network equipment, but those operations have folded or been sold off since then. The shares were delisted from the Nasdaq in 2010 because they failed to meet the minimum $1 value.
By Mangosuthu Buthelezi
Memories of a long brotherhood tempered in common struggle
- House budget bargain faces Senate filibuster; Republicans line up to oppose
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- Obama birther theories float, as Hawaii health director killed in crash
- NAPOLITANO: A conspiracy so vast
- PRUDEN: The last living witnesses; they wore the yellow star and remember the Nazi terror
- Echoes of Cold War in Ukraine as Russia tries to rein in former Soviet satellites
- KEENE: James Clapper should resign for lying to Congress
- Kim Jong-un consolidating power or losing grip on North Korea's military
- Comma on!: Twitter erupts over Obama-Castro 'marriage'
- Broncos-Chargers game ends with several stabbings
Independent voices from the The Washington Times Communities
Implement these actionable tips, how-to’s and best practices in 10 minutes or less to leverage online communications and technology for brand, business and career development.
Consummate traveler Todd DeFeo explores the unique stories that make destinations worth going to.
Covering the world of soccer, including the World Cup, Major League Soccer, D.C. United and the English Premier League and other interesting sporting events.
Born in 1930 in rural Missouri, Charles Vandegriffe, Sr., brings his time and place to the Communities.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow