NextWave gets $300 million from Qualcomm

NextWave Telecom, the contentious wireless service provider that's battling over PCS licenses, has named Qualcomm as its new investor.

Wireless equipment maker Qualcomm is to pump $300 million into NextWave, which filed for bankruptcy protection in 1998. The money will be used to build out NextWave's third generation (3G) wireless network based on Code Division Multiple Access 2000 (CDMA2000) gear.

But the investment hinges on NextWave's reorganization plan, which includes winning back its personal communications services (PCS) licenses. NextWave was forced to return those licenses to the Federal Communications Commission due to non-payment after the company filed for bankruptcy protection. The FCC subsequently auctioned the licenses last year generating $17 billion for the federal government.

NextWave took its battle to court and after losing more than once, finally won its appeal in June. The appeals court said that the FCC did not have the right to repossess the licenses because NextWave was protected under bankruptcy rules.

The FCC is now appealing to the Supreme Court.

A NextWave spokesman said the company expects to have a resolution within the next 12 months. But until then, NextWave's wireless network -- which the company says will eventually support data transmission rates of 2.4M bit/sec -- is on hold.

Contact Senior Editor Denise Pappalardo

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