U.S. Appeals Court, D.C., upheld FCC revision of installment paym...

exceeded its authority when it changed installment payment rules for companies that won IVDS licenses in 1994 auction. Celtronix won license for Norfork-Virginia Beach metropolitan service area and because it was small company it was allowed to pay winning bid in installments over term of license. In Dec. 1997, FCC changed rules to adopt 90-day grace period for each installment payment, automatically followed by 2nd 90-day period. Commission also imposed late fees on licensees that failed to make timely payment. Rule change replaced 3-6 month grace periods after 90 days delinquency that FCC had granted at its discretion to companies in financial distress. Court said FCC acted within its licensing authority when it changed payment rules as action was reasonable both in substance and in being made retroactive. “The Commission merely replaced the possibility of 2 (or maybe more) 3-month grace periods, available only on a successful appeal to the Commission’s discretion, with the assurance of two 90-day periods subject to 5% and 10% penalties on the delayed payments,” Judge Stephen Williams wrote: “Looking at licensees as a class, there is no reason to think the change disadvantageous. Indeed, the Commission described the change as a ‘liberalization.'” Celtronix claimed to have had “vested right” to keep requesting additional grace periods and to force FCC to “consider any unique circumstances.” Company never explained where vested right came from, Williams wrote, and “preauction license system offered no vested right.” Chief Judge Douglas Ginsburg and Judge Karen Henderson joined in ruling.