American Wireless amasses valuable territory
Monday, January 29 2001
JACKSON - Jackson-based American Wireless License Group made national news last month when a Fulton County, Ga., superior court jury ruled in a dispute over a broadband communications license two days before Christmas.
On Dec. 23, the jury found that American Wireless must abide by a disputed agreement to sell a 30-MHz (megahertz) broadband community license for Honolulu to Pacific Communications for $13.5 million, the sum agreed on in 1999, The value of the license could be as high as $150 million.
"The whole thing didn't smell right," said Wirt Yerger III, founder, chairman and CEO of American Wireless. American Wireless disputed that it ever entered a binding contract.
In April 1999, American Wireless acquired the 30-MHz license for mobilephone use in Honolulu at an auction for an undisclosed sum. That fall, the company rejected offers from two communication firms to purchase the 10-MHz license for $7.4 million.
But several months later, American Wireless received a bid of $13.5 million from Pacific for the entire 30-MHz license, which was acceptable, with two conditions: that Pacific make a non-refundable 10% deposit and complete the agreement within 30 days. Pacific added two more conditions, including a 60-day "no shop" period, and a 60-day completion date. American Wireless officials say they never inked the revised contract.