FCC Wireless Bureau dismissed petition by TPS Utilicom that chall...

re-auction of NextWave’s licenses, with results later overturned by U.S. Appeals Court, D.C. TPS had petitioned FCC to deny ANW’s license applications in re-auction, saying carrier hadn’t complied with rules for entrepreneur status and very small bidder status and its application lacked “requisite candor.” TPS contended AT&T Wireless exerted control over ANW, meaning larger carrier’s gross revenue and assets should have been included in ANW’s calculations to receive designated entity status. Wireless Bureau said it dismissed TPS’s petition for lack of standing. Even if petition were addressed on merits, “TPS Utilicom fails to raise any issues that would warrant denying the applications,” order said. Separately, Wireless Bureau Mon. granted ANW 15 PCS licenses that had been part of Jan. 2001 re-auction but hadn’t been involved in pending NextWave litigation. On standing issue, bureau’s order said TPS Utilicom hadn’t bid competitively for any of markets in which ANW was high bidder. It said company failed to show that awarding licenses to ANW would “somehow deprive it of a valid auction process with respect to the market for which it did bid.” Bureau concluded that TPS Utilicom had failed to demonstrate that AT&T Wireless had controlling interest in ANW “that would warrant the attribution of AT&T Wireless’s gross revenues and assets to Alaska Native Wireless.” It said TPS had failed to show ANW had acted with lack of candor. TPS Utilicom had argued that if AT&T Wireless’s interests in ANW were considered on fully diluted basis, which would include ownership of stocks, warrants and other instruments, then carrier would have 79.4% membership interest in ANW. But bureau said: “TPS Utilicom has misunderstood what constitutes de jure control under the Commission’s rules.” It said de jure control must be established by ownership of more than 50% of company’s voting interests. ANW investor Council Tree has 100% of voting rights in carrier, meaning it can make decisions without seeking vote of other member in limited partnership -- AT&T Wireless. Bureau also rejected arguments that AT&T Wireless had de facto control by dint of its nearly 80% fully diluted equity stake in ANW. “The Commission has made clear that there is no minimum equity requirement for controlling interest holders because that might hinder the ability of small businesses to acquire passive financing successfully and compete in the competitive communications marketplace,” order said. Washington attorney Raymond Quianzon, who represents TPS Utilicom, said carrier was mulling seeking review of FCC decision.