An ITFS Lease Renegotiation Scorecard

By John Schwartz

Steve Schaffer, a partner with Schwartz, Woods & Miller, estimates that his law firm represents about 40 ITFS licensees.  He states that some existing wireless cable operators have sought lease amendments to allow maximum flexibility in the use of ITFS spectrum, including two-way use.  He says that generally he has advised clients to wait until the lessee can show a concrete system design, and that generally has produced delay.  The only lease that Shaffer cited as being rewritten for two-way is one between CAI Wireless and Boston Catholic TV. 

Todd Gray, a partner with Dow, Lohnes & Albertson, estimates that his law firm represents licensees of 250-300 ITFS stations operated by 50-100 clients.  He says that "basically zero" have entered into leases which
contemplate two-way digital use.  He adds that he has tried very hard to keep his clients from entering into broad lease amendments that are tantamount to "writing blank checks" for two-way use, and that none have
done so. 

Wayne Coy, an attorney with Cohn & Marks, estimates that his firm represents about a dozen ITFS clients.  He states that he has taken part in some lease renegotiations to accommodate digital video, but none to permit
two-way digital data transmission. 

Ed Lavergne, an attorney with Shook, Hardy & Bacon, estimates that he represents ITFS clients with about a dozen excess capacity leases.  He says that he has not written any leases for two-way, although he is "looking at one now." 

Tom Pyle, Executive Director and CEO of NITV, says his organization currently has 23 excess capacity leases.  Of these, he says that one has been thoroughly re-written for two-way data use.  "Maybe five" were written
recently and contemplate some data uses, but are not comprehensive enough for the new two-way rules.  He added that NITV has five leases under current renegotiation, but he characterizes the talks as "being stalled" by
the wireless operator, which is slated to be purchased as part of the current acquisition flurry. 

People's Choice TV is a wireless cable company with systems operating in six metro areas, and spectrum positions in three others.  In each of these markets, PCTV leases excess capacity from as many as a half-dozen ITFS licensees.  Todd Rowley, PCTV Senior VP of Market Development, estimates that between 15% and 20% of these leases either originally provided for two-way digital operation or have been amended recently to permit two-way. He stated that PCTV is "still in the early stages of the process" of working with ITFS licensees. 

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