You are right, Scott. At this point in time, CAI needs to prove it can perform. SHOW ME THE MONEY! We all know (or at least I think we all agree) that CAI has the potential to succeed: the spectrum, the technology, the management, the business plan... that great VISION which we all bought into. Or was it all a dream? Unfortunately, it takes big MONEY to realize these kind of dreams - something which CAI presently was very little of...
Nevertheless, you've got to hand it to these guys (JA & JP). It takes real guts to do what they have accomplished. To venture out into the unknown with high-speed Internet access, digital wireless cable and a 2-way MMDS platform capable of supporting a multitude of voice, data and video applications. And all of this, of course, while having to deal with the BANX situation, regulatory hurdles (FCC) and a very limited supply of capital.
So what went wrong? Who are CAI's potential strategic partners and where are they? Is there any hope left for CAWS shareholders?
From an operational standpoint, I believe CAI found out the hard way that it did not have the resources to become an ISP and has instead opted to wholesale the capacity of its "wireless pipes" to other ISPs. CS, on the other hand, has taken a more aggressive approach by developing into a full-service ISP.
From a technological standpoint, both CAI and CS have found that launching a digital wireless cable service was more complicated than expected (as evidenced by the delays in the Dallas and Boston markets). For these services to be successful, it is essential that they be virtually perfect prior to marketing.
Regarding 2-way applications, is MMDS really any better than 24 GHz, 28 GHz (LMDS) and/or 38 GHz? Given that MMDS has definite advantages, what could be preventing a potential strategic partner from jumping into bed with CAI? I am hoping the primary reason was the BANX situation - now resolved- and not CAI's debt and/or money-lossing analog video operations (although it is probably a combination of the above).
In any case, we will be finding out our destiny as CAWS shareholders within the next 2 months.
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