Bugging The Fcc Over A Cellular Licensing Lottery
Foreigners may buy American office buildings, farmland, and movie studios, but not the airwaves. Investors from Canada, Mexico, Japan, Britain, and elsewhere found that out the hard way when they sought licenses to run cellular phone companies in rural markets such as Hammond, La., and Heflin, Ala. Eighteen partnerships that included foreign investors won license lotteries in 1988 and 1989, only to be disqualified later by the Federal Communications Commission. The reason: In 1990, the FCC declared that in cellular partnerships, aliens could serve only as nonvoting limited partners.
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