Best Digital Inc, has filed against regional telecommunications company US West Inc alleging that its last-minute refusal to honor a business commitment led to the destruction of Best Digital’s BDPCS Inc affiliate. BDPCS was one of the two companies that forced the US Federal Communications Commission to re- auction 18 licenses for the next generation of cellular services when it failed to even make the required down payment for the 17 PCS Personal Communications Services licenses it had won with a total bid of $874m (CI No 2,926). According to BDPCS, US West committed to provide Best Digital with temporary financing to fund a $37m down payment required by the Commission before its bid to obtain PCS licenses in key cities within US West Inc’s 14- state region was successful. The suit maintains that with nine business days left before the payment was due, US West refused to honor its agreement. The suit alleges that US West Inc’s illegal actions caused damages to BDPCS, including a $67m fine imposed by the FCC and losses arising from the destruction of the value of Best Digital’s PCS business. According to BDPCS, Wall Street bankers had projected the company to be worth in excess of $1bn, based on the value of the licenses and Best Digital’s anticipated revenues. The suit was filed in Boulder County District Court.
