To all--it does not pay to be too far ahead of the market (as I have learned to my woe), however wireless cable IS recognized as a viable delivery model. Eventually CAWS's time will come. But short-term, other investments are better, ie this may be dead money for awhile.
Tuesday November 5 11:57 AM EDT
Bellsouth Buys North Georgia Wireless Cable Rights
From Cs Wireless Systems, Cai Wireless Systems
BellSouth to Expand Wireless Cable Reach Outside Atlanta
ATLANTA, Nov. 5 /PRNewswire/ -- BellSouth Corp has agreed to buy the rights to licenses that
will allow it to eventually provide wireless cable television services to much of North Central Georgia
from wireless cable companies CS Wireless Systems, Inc. and CAI Wireless Systems Inc for
approximately $13.3 million in cash.
Under the terms of a definitive agreement signed by the companies, BellSouth will pay CS Wireless
approximately $7.3 million for the rights to licenses that would permit BellSouth to serve all or
portions of more than two dozen Georgia counties immediately outside the metropolitan Atlanta
market. The extended service areas generally lie northwest, southwest and southeast of the Atlanta
market.
In addition, BellSouth will also buy the Atlanta basic trading area (BTA) license from CAI Wireless
Systems, one of two publicly traded corporate owners of CS Wireless, for approximately $6 million.
Ownership of the Atlanta BTA license will give BellSouth the right to apply to the Federal
Communications Commission for additional wireless cable licenses in a 34-county area of North
Georgia, including metropolitan Atlanta.
"Getting the rights to these licenses will mean that even more customers in Georgia will one day have
access to BellSouth's new wireless cable service along with the high service standards that our
customers expect from the premier communications company in the Southeast," said William F.
Reddersen, group president of long distance and video for BellSouth.
"This transaction is part of CS's strategy of rationalizing its markets on a regional basis," said Alan
Sonnenberg, vice chairman of CS Wireless.
The purchase extends BellSouth's potential future wireless cable reach in Georgia to an additional
estimated 336,157 line-of-sight households -- the wireless cable industry term for potential
households served -- at an average cost of $31 per line-of-sight household. The estimated
line-of-sight cost includes a pro-rated share of the purchase price of the Atlanta BTA license.
Together with BellSouth's previously announced plans to purchase Wireless Cable of Atlanta, Inc.,
which holds the rights to licenses serving the Atlanta metropolitan area, BellSouth's acquisition of the
CS Wireless and CAI Wireless rights would give BellSouth combined access to a total of 1.2 million
line-of- sight households in and around Atlanta.
BellSouth would provide service using multichannel multipoint distribution system (MMDS)
technology. That technology allows operators to broadcast a combination of satellite-delivered and
local programming from a central transmitter site. Subscribers receive the service using antennas
about the size of a laptop personal computer.
Sale of the CS Wireless and CAI Wireless properties to BellSouth is expected to close in the first
quarter of 1997, subject to regulatory review and certain other conditions.
CS Wireless Systems, Inc. is one of the largest wireless cable television companies in the United
States. The company's 17 markets, adjusted on a pro forma basis for announced transactions,
encompass approximately 7.2 million television households and have approximately 77,500
subscribers. CS is primarily owned by CAI Wireless Systems, Inc. and Heartland Wireless
Communications Inc .
BellSouth is a $17.9 billion communications company. It provides telecommunications, wireless
communications, directory advertising and information services to more than 25 million customers in
17 countries. For more information on BellSouth, visit the BellSouth Web page at
bellsouth.com. SOURCE BellSouth Corporation |
