Just started reading the prospectus. Pathnet has a good plan. I would think the IPO should be well received. Any thoughts?
PTNT
Shares 4,687,500
Price Range $15-$17
Employees, FT/PT 83
State of Incorporation DE
Fiscal Year Ending 12/31
Revenue $0.1 Mln (FY 97)
Net Income(Loss) $(4.0 Mln)
Underwriters:
MORGAN STANLEY DEAN WITTER & CO
BEAR STEARNS & CO INC
LEHMAN BROTHERS INC
JP MORGAN SECURITIES INC
THE COMPANY
Pathnet intends to become a leading provider of high quality, low cost, long haul telecommunications capacity to second and third tier markets throughout the United States primarily by upgrading existing wireless infrastructure to develop a state-of-the-art, digital SONET network. The Company is positioning itself primarily as a 'carrier's carrier,' providing a high capacity, dedicated network to interexchange carriers ("IXCs"), local exchange carriers ("LECs"), Internet service providers ("ISPs"), the Regional Bell Operating Companies ("RBOCs"), other 'carrier's carriers,' cellular operators and resellers (collectively, "Telecom Service Providers"). The Company plans to deploy its digital network by upgrading, integrating and leveraging existing telecommunications assets, sites and rights of way, including those utilized by railroads, utilities, state and
local governments and pipelines ("Incumbents"). By integrating the existing networks of Incumbents, the Company expects to obtain the equivalent of a nationwide spectrum license at minimal licensing cost.
The Company's goal is to deploy a network covering 29,000 route miles within two years and ultimately to deploy a network encompassing more than 100,000 route miles. Based on market research prepared for the Company by the Yankee Group, a leading telecommunications research firm, the estimated addressable market for the Company's services is expected to grow from approximately $6 billion in 1998 to approximately $17 billion by 2008. The Company believes its strategy of developing a high quality, low cost, digital network primarily in
smaller markets will enable the Company to take advantage of (i) the limited capacity currently available or expected to be constructed in smaller markets,(ii) higher prices generally available in those markets and (iii) technological and cost advantages of the Company's deployment strategy. The Company is currently in various stages of designing, constructing, testing and commissioning its digital network, which will initially serve markets in 34 states. The Company has completed over 800 route miles of its network, is currently constructing approximately 2,100 additional route miles and has
entered into one agreement relating to the sale of capacity on its network.
The Company's core strategy for deploying its network is to form strategic relationships with Incumbents and other owners of telecommunications assets that will enable the Company to leverage these existing assets and thereby reduce the Company's time to market and capital costs. The Company believes that Incumbents will find a strategic relationship with the Company to be attractive due to the
opportunity for the Incumbents to (i) reduce the costs of upgrading internal network infrastructure, (ii) receive incremental capacity which has greater reliability characteristics than most of the Incumbents' existing systems and (iii) leverage under-utilized assets and receive a share of the incremental revenues generated by Pathnet...
And they have a cool website too: pathnet.net |
