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Prediction: Nextwave - Cingular Deal Will Stand
Yesteday, Mike posted regarding Verizon's intention to bid on the Nextwave-owned spectrum that had already been sold over to Cingular in the on-again, off-again deal of the year. This article continues the discussion of how the FCC may negate the Cingular deal, and require Nextwave to hold an open auction for the spectrum. It is in this open auction that VZW would try to over-bid Cingular. My guess is that if VZW were to do this, it would be more in a bid to mess with Cingular, and less because they need the frequency. I'm not disinclined to making unpopular predictions, so I'll go out on a limb now: The deal will stand, there will be no auction. This is because FCC rule changes earlier this year allowed spectrum rights owners to deal their spectrum as they see fit, so the FCC does not have a right to negate the existing deal and force an auction.
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