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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 181.84+0.9%Jan 8 3:59 PM EST

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To: Ramsey Su who wrote (2041)10/5/1999 8:16:00 PM
From: qdog   of 13582
 
Bigger than ever? Hardly and by the time Ebbers whittles this deal down, he will have got what he wanted all along, wireless. Between the EU and FCC, they definitely will shed Sprints Internet, and probably will be forced to shed the LD of Sprint, which Ebbers really doesn't care about residential LD. What will remain is probably wholesale fiber (maybe), DSL infrastructure (Sprint was ahead of MCIWorldcom on this front) and wireless (both PCS and the MMDS license). The latter is the real prize for Ebbers as he is after a more complete portfolio to offer the business community, which has far more margin than residential.

Go back and review the MCI deal and the things that were shed then. There will be all sorts of complaints from other players and scrunity of the regulators. It flies in the face of the Telco Act of 1996 as it stands presently.

Ebbers still has his problems with piss poor customer service image and fracture structure that is now known as SprintMCIWorldcomBrooksMFSWiltelUUnetIDBLDDS.

As far as NextWave, they are probably a plum for a Qwest or Global Crossing. It would be a real plum right now for somebody like BellSouth in it's present form, but BellSouth is a GSM/TDMA, so Nextwave would have to be bought before they build. Regulators will again not allow Worldcom to buy them as they are A/B D/E licensee and Nextwave is a C licensee.
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