Court case could aggravate US mobile phone industry.

EUROPEMEDIA-(C)2002 Van Dusseldorp & Partners - http://www.vandusseldorp.com/

The US Supreme Court has agreed to hear a case in the ongoing dispute over a block of wireless spectrum that could delay high-speed mobile internet services in the country even further, the Financial Times

Telecoms regulator Federal Communications Commission (FCC) said it was pleased the court would hear the case, while mobile operators Verizon and Cingular had argued against it.

The dispute stems from the FCC?s auction of the spectrum in the 1990s. At the time NextWave said it would pay $4.7bn to licence the spectrum. When the start-up company when bankrupt, the regulator took back the licences and re-auctioned them for 16bn. But an appeals court later said the regulator had erred.

Without being able to use the spectrum, mobile operators say they are experiencing capacity shortages, which has led to the delay of 3G mobile services that are planned across Europe and other countries.

The court plans to hear from the various sides this year and expects to rule next year. But the case could then be sent to an appellate court, causing a further delay. ((Distributed via M2 Communications Ltd - http://www.m2.com))