Verizon Wireless asked U.S. Appeals Court, D.C., this week to est...
Verizon Wireless asked U.S. Appeals Court, D.C., this week to establish expedited schedule for hearing its challenge to March 27 FCC order that returned 85% of NextWave re-auction deposits. Verizon told court that FCC didn’t oppose expedited schedule for…
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briefing and arguments. Earlier this month, Verizon Wireless filed suit in U.S. Court of Federal Claims to obtain remaining deposit from re-auction and seek ruling that auction “contract” for disputed licenses was void (CD April 9 p1). Separate challenge also was filed at D.C. Circuit over Commission order. Last month, FCC returned 85% of deposits to re-auction winners but concluded winning bidders should continue for now to be held to nearly $16 billion auction obligations until Supreme Court review is finalized (CD March 28 p1). Verizon Wireless told D.C. Circuit that agency refused to return all of carrier’s down payment and kept it obligated to pay “on 10 days’ notice” $8.4 billion for licenses if Commission eventually reacquires them. Filing said: “The order is wrong under fundamental principles of contract law, and it irreparably injures Verizon Wireless.” Carrier told court that “the Commission’s assertion that Verizon Wireless remains on the hook to pay this enormous sum on short notice has led 2 major credit- rating agencies to revise from ’stable’ to ‘negative’ their credit outlook for Verizon Communications.” Credit rating agencies attribute Verizon Wireless’s debt to Verizon, which co-owns Verizon Wireless in joint venture with Vodafone. Verizon Wireless told court that its agreement to participate in re-auction of NextWave licenses meant it took on risk that it might have to surrender licenses if D.C. Circuit issued ruling that returned them to NextWave, which occurred in June and is now being appealed to Supreme Court by FCC. But Verizon Wireless said it “did not accept the risks that the FCC now seeks to impose on it -- that if this court’s decision in the pending litigation made the licenses unavailable, the FCC would nonetheless compel Verizon Wireless for years to bear a contingent liability to pay more than $8 billion on 10 days’ notice if and when the FCC succeeds in reclaiming the licenses.” Verizon said it didn’t accept risk that it would bear such burdens “for an indefinite period without any assurance that it would ever receive the licenses that it won at auction.” Briefing schedule proposed by Verizon Wireless would set June 10 deadline for it to file brief and July 24 date for FCC. Final briefs would be due Aug. 30.