U.S. Settles Airwaves Dispute With NextWave

The government settled its airwaves battle with NextWave Telecom Inc. with a $16-billion deal that could improve service for mobile-phone customers in dozens of cities. Under the agreement, NextWave would give up its wireless airwaves, which will then be purchased by the nation’s biggest mobile telephone carriers to fill coverage gaps in congested markets. The deal still must be approved by Congress, the Justice Department and a New York bankruptcy judge and survive any legal challenges.

NextWave won the airwaves in a 1996 government auction, but paid just $500 million of its $4.7-billion bid before seeking protection from creditors, largely the Federal Communications Commission, in Bankruptcy Court. The FCC then re-auctioned the licenses, bringing $15.8 billion for the same chunk of spectrum from major telecommunications companies, including Verizon Wireless and affiliates of Cingular Wireless, VoiceStream Wireless and AT&T; Wireless.