The U.S Supreme Court case Federal Communications Commission v. NextWave Personal Communications Inc., 2002, revolved around the issue of whether the Federal Communications Commission (FCC) could revoke licenses granted to NextWave for failure to make timely payments on its installment plan. The FCC had auctioned off broadband PCS spectrum licenses and allowed winners to pay in installments over a ten-year period. However, when NextWave failed to keep up with their payment schedule, the FCC repossessed and re-auctioned their licenses. In response, Nextwave filed for bankruptcy protection under Chapter 11 which prohibits creditors from reclaiming debts that arose before filing without court approval. The Supreme Court ruled in favor of Nextwave stating that by revoking the license due to non-payment, FCC was acting as a creditor rather than a regulator which violated section 525(a) of Bankruptcy Code prohibiting governmental units from revoking debtors' licenses solely because they have not paid dischargeable debt.

In the dissenting opinion for FCC v. NextWave Personal Communications Inc., Justice Breyer, joined by Justices Stevens and Souter, argued that the majority's interpretation of Section 525 of the Bankruptcy Code was too broad. They contended that this section should not prevent a regulatory agency from revoking licenses when payments are not made as agreed upon in an auction process. The dissenters believed that such auctions were important tools for allocating scarce resources efficiently and fairly among competing applicants. They also expressed concern about potential negative impacts on public interests if bankrupt companies could retain their licenses without making required payments, including possible harm to competition and innovation in telecommunications markets due to reduced availability of spectrum licenses for other firms.