Judge Sides With NextWave

A U.S. bankruptcy judge nullified the Federal Communications Commission’s decision to cancel 90 wireless telephone licenses claimed by NextWave Telecom Inc. Judge Adlai S. Hardin granted a motion by NextWave to void the FCC’s Jan. 12 cancellation, holding that the commission’s decision violated the bankruptcy code’s automatic stay of all debts of companies under Chapter 11 protection.

Noting that the FCC had litigated over the licenses for more than a year before asserting a default by NextWave, Hardin found that the cancellation “conflicted with countless written and oral utterances and acts of the FCC.”

NextWave has said it is prepared to pay the remaining $4.3 billion it owes on the wireless licenses it won at auction.

An FCC spokeswoman said the agency plans to file an appeal soon.