[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Extensions of Remarks]
[Pages 26320-26321]
[From the U.S. Government Publishing Office, www.gpo.gov]



INTRODUCTION OF H.R. 3484, THE PROMPT UTILIZATION OF WIRELESS SPECTRUM 
                              ACT OF 2001

                                 ______
                                 

                    HON. F. JAMES SENSENBRENNER, JR.

                              of wisconsin

                    in the house of representatives

                      Thursday, December 13, 2001

  Mr. SENSENBRENNER. Mr. Speaker, I am pleased to be an original 
cosponsor of H.R. 3484, the Prompt Utilization of Wireless Spectrum Act 
of 2001. The bill's title aptly describes the critical need for this 
legislation to turn wireless spectrum, which has been tied up in 
litigation for years, into a useful, performing asset for the American 
people.
  For some five years, these personal communication services spectrum 
licenses have been the subject of a contentious dispute between the 
original licensee, an entity known as NextWave, and the Federal 
Communications Commission, regarding their rightful ownership.
  In 1993, the Communications Act of 1934 was amended to permit the FCC 
to sell licenses and construction permits through a competitive bidding 
process and allow the successful bidders to pay for their licenses in 
installments. Pursuant to this authorization, auctions of certain 
licenses were held in 1996. NextWave successfully bid approximately 
$4.7 billion for a substantial block of these licenses.
  Subsequently, however, the market value of these licenses became 
depressed in response to various events, which in turn, adversely 
impacted the ability of some licensees to obtain funding for their 
purchases and operations. After making an initial payment of 
approximately $500 million, NextWave failed to obtain financing for the 
balance it owed to the government and filed for bankruptcy relief under 
Chapter 11 of the Bankruptcy Code in 1998. It thereafter made no other 
payments to the FCC for the licenses. Eventually, 20 other licensees 
also filed for bankruptcy relief under Chapter 11.
  Extensive litigation over NextWave's licenses dragged on for several 
years. The FCC ultimately canceled the licenses and reauctioned them in 
January of this year, with winning bids of nearly $16 billion. 
Nevertheless, the United States Court of Appeals for the District of 
Columbia subsequently found the FCC's cancellation of the licenses 
violated the Bankruptcy Code and thereby rendering their reauction null 
and void.
  In an effort to resolve the various issues presented by the disputed 
ownership of these licenses, the FCC, NextWave and certain other 
interested parties have entered into a comprehensive settlement 
agreement late last month. The agreement provides, in essence, for the 
transfer of the licenses by NextWave to the FCC, which in turn will 
convey them to the successful reauction bidders. In exchange for 
agreeing to transfer the licenses, NextWave

[[Page 26321]]

will receive a cash payment from the United States government (in 
addition to which the government will make a cash payment directly to 
the IRS on behalf of NextWave). As the result of these transactions and 
certain related payments, the United States will receive approximately 
$10 billion as net proceeds from the settlement.
  In response to certain concerns expressed with regard to the 
settlement agreement, the Subcommittee on Commercial and Administrative 
Law and the Subcommittee on the Courts, the Internet, and Intellectual 
Property of the Committee on the Judiciary held a Joint hearing last 
week on this matter. Over the course of that hearing, various issues 
presented by the settlement agreement and proposed legislation were 
closely scrutinized, particularly those provisions requiring expedited 
judicial review and limiting the venue of certain appeals.
  Largely as a result of that hearing and extensive consultations with 
the interested parties, I am now confident that the settlement 
agreement is in the best interest of the public and the national fisc, 
under the circumstances.
  H.R. 3484, the Prompt Utilization of Wireless Spectrum Act of 2001 
ensures that the settlement agreement will be implemented with the 
ultimate goal of making these telecommunications licenses available to 
those who will best utilize them for the American people.
  Given the time constraints implicit in the pending settlement 
agreement and the need to tree up these licenses as soon as possible, 
it is my hope that Congress will promptly consider and pass H.R. 3484.

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