Cingular Closer to Acquiring Additional Radio Spectrum

Cingular Wireless took another significant step in completing its previously announced bid to acquire 34 PCS licenses from NextWave Telecom when the U.S. Bankruptcy Court for the Southern District of New York approved the sale order relating to the offer. The approval clears the way for Cingular to seek the appropriate regulatory approvals needed for consummation of the license transfers. The licenses, which cover approximately 83 million potential customers, are for spectrum primarily in markets where Cingular currently has voice and data operations.

"The court approval is a significant milestone for Cingular in finalizing the acquisition of the spectrum and licenses with NextWave," said Mark Feidler, Chief Operating Officer for Cingular Wireless. "This spectrum will greatly benefit our customers, as it allows us to deliver additional products and services, expand coverage in key markets and better accommodate overall future growth."

Under terms of the deal, Cingular would pay US$1.4 billion in cash, and obtain FCC authorization to operate on 10 MHz of broadband PCS (1900 MHz) spectrum in the following markets: Los Angeles, CA; Chicago, IL; San Francisco, CA; Dallas, TX; Houston, TX; Washington, DC; Atlanta, GA; Boston, MA; San Diego, CA; Baltimore, MD; Portland, OR; Sacramento, CA; Las Vegas, NV; Salt Lake City, UT; Allentown, PA; Harrisburg, PA; Springfield, MO; Sarasota, FL; Manchester, NH; Portland, ME; Lakeland, FL; York, PA; Lancaster, PA; Poughkeepsie, NY; Reading, PA; Hagerstown, MD; Temple, TX; Gainesville, FL; Tyler, TX; Joplin, MO; Salisbury, MD; and Kankakee, IL. Cingular would also obtain FCC authorization to operate on 20 MHz in the 1900 MHz band in Tampa, FL and El Paso, TX.

Cingular currently provides service in all of these markets except for Portland, OR; Salt Lake City, UT; El Paso, TX; Manchester, NH; Hagerstown, MD; Salisbury, MD; and Kankakee, IL.

NextWave voluntarily initiated bankruptcy reorganization procedures in June 1998. NextWave and the FCC have agreed that a payment of US$714 million to the U.S. Treasury will satisfy NextWave's financial obligation associated with the licenses to be assigned to Cingular."

Posted to the site on 29th September 2003