Cingular, NextWave sign $1.4 billion agreement
Cingular Wireless and NextWave Telecom announced an agreement for Cingular to purchase licenses from NextWave to provide wireless services in 34 markets for $1.4 billion.
The licenses, which cover about 83 million potential customers, are for spectrum primarily in markets where Cingular currently has voice and data operations. The transaction is subject to review and approval by the bankruptcy court overseeing NextWave’s reorganization and by the FCC.
Said Allen Salmasi, NextWave’s Chairman and CEO: “The proceeds of the deal will enable us to satisfy a significant portion of our obligations to the government and to other creditors. The transaction strengthens NextWave’s capitalization and positions the company to complete its reorganization and initiate the build out of its next generation broadband wireless network in a significant number of markets, including New York, Los Angeles, Washington, D.C., and in other major markets around the country.”
Under terms of the deal, Cingular would pay $1.4 billion in cash, and obtain FCC authorization to operate on 10 MHz and in a few cases on 20 MHz of broadband PCS (1900 MHz) spectrum in the designated markets.
NextWave also holds FCC authorizations to operate on 1900 MHz spectrum in 61 other markets.