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FRIDAY, DECEMBER 21, 2001

Congress adjourned for the year on Thursday, refusing to pass legislation to allow an Alaska Native venture to keep wireless licenses it purchased in an auction ruled illegal by the courts.

Sens. Ernest Hollings (D-S.C.) and John McCain (R-Ariz.) led the opposition to the bill, which had been arranged by Federal Communications Chairman Michael Powell. Powell wanted to end years of litigation over $16 billion worth in wireless licenses.

A joint venture of Sealaska Corp., Doyon Ltd., Arctic Slope Regional Corp. and AT&T Wireless bought $2.9 million worth of licenses which had been seized because NextWave, their previous owner, had declared bankruptcy. But a federal appeals court said the licenses rightfully belonged to NextWave.

Powell's deal would have allowed the Native venture to keep its licenses but would have also paid NextWave $4.3 billion. The Senators in question said this amounted to a Christmas gift at taxpayers expense.

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Wireless Deal Falls Apart in Congress (The New York Times 12/21)
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