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Technology Stocks : NEXTEL

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To: Arnie Doolittle who wrote (5146)3/14/1998 6:41:00 PM
From: p friend  Read Replies (2) of 10227
 
The A band being auctioned in NYC is the suburban part of the NYC BTA (Block? Trading? Area? - about 8 million pops). CellularVision was grandfathered the A block frequencies for the 5 burroughs of the city (called the NYC PMSA - about 8 million pops) for pioneering the development of LMDS technology. That is, CellularVision got their A band spectrum for free from the FCC last fall. Nextband is leading the bidding for the entire NYC B block spectrum (the city and suburbs - 16 + million pops) and may be paying a premium because their is no way to get the best (Manhatten plus the other 4 burroughs) part of the A block in the auction. WNP or its acquirer (WNP is leading the A block bidding in the auction) will need to buy CellularVision to get the best part of the A block or it would seem that marketing the service using the New York City media would be very inefficient. CellularVision's part of New York may be worth more per pop than any market in the country due to the financial district, etc. That remains to be seen and the market value of publicly traded CellularVision has been dropping steadily through the auction process. I hope this is close to correct and useful to your thinking on this. Nextels benefit from their quiet involvement in the LMDS auction might be enormous. Nextband is currently (round 71)winning spectrum in 6 of the 8 top markets in the country and the results have pretty much stopped changing in the last 10 plus rounds.

fcc.gov

Thank you for all of the effort you have put into this thread.
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