Roanoke Times Copyright (c) 1995, Landmark Communications, Inc. DATE: THURSDAY, December 15, 1994 TAG: 9412150048 SECTION: BUSINESS PAGE: B-9 EDITION: METRO SOURCE: Associated Press DATELINE: WASHINGTON LENGTH: Medium
The Federal Communications Commission issued licenses to American Personal Communications, a Washington Post Co. affiliate; Cox Enterprises Inc., parent of Cox Cable Roanoke; and Omnipoint Inc. to provide a new phone service that promises to be more mobile and less expensive than existing cellular service.
With the licenses in hand, the companies will be permitted to move forward on building their networks - the first in the nation to do so.
APC's license is for Washington, Cox's for Los Angeles-San Diego and Omnipoint's for New York.
The FCC awarded the companies the licenses through a program intended to reward technological innovation. Originally, the licenses were supposed to be free, but the FCC ended up saying it would require the companies to pay for them.
The companies became the center of controversy earlier this year when rivals highlighted a provision in trade legislation reducing the amount of money each company would pay the federal government for its license. The new formula, which guarantees the government a minimum of $400 million for the three licenses, replaced a payment plan set up by the FCC.
Critics say the new plan deprives the Treasury of millions of dollars.
APC, Cox and Omnipoint are the first to receive the new wireless licenses. Rivals, including the biggest names in the telecommunications business, are bidding on 99 licensees to provide the same service at a FCC auction.
With bidding slowing down, winners could be declared in the auction, which began Dec. 5, in the next week, FCC officials said.
by CNB