Verizon in Talks to Keep NextWave Licenses

Verizon Wireless, facing the loss of $8.8 billion worth of licenses to deploy new and expanded service, has held preliminary talks with NextWave Telecom Inc. on a possible settlement that would allow Verizon to retain the licenses, an industry source said.

A U.S. appeals court ruled last week that the Federal Communications Commission illegally repossessed 90 licenses from NextWave after the company failed to make timely payments. The agency had broken up the licenses and resold them to companies, including Verizon, the biggest U.S. wireless carrier.

Verizon, a joint venture between Verizon Communications Inc. and Britain’s Vodafone Group, by far won the largest chunk of licenses in the bidding.

NextWave has repeatedly denied that it will settle after having won a long legal battle against the FCC and instead will go ahead with plans to launch a network offering always-on mobile Internet service.

“The company won the litigation, and it’s our intention to retain the licenses,” NextWave Deputy General Counsel Michael Wack said. A Verizon spokesman declined to comment on settlement talks.