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Technology Stocks : Nextel?????

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To: stephen allen who wrote (4)8/24/1996 8:06:00 PM
From: John Zwiener   of 48
 
I got some info from an experienced invertor who is into nextel.
He says that the winter auction will supply the contiguous frequencies
needed for a truely seemless network. I was previously under the
impression that nextel already had this. He believes strongly that
essentially nextel is buying the mom and pop companies nationwide
picking up channels within the bandwdth to be auctioned this winter. They will then pick up the remaining bandwidth at auction. This will
provide the contiguous frequencies that the fcc says that they be able
to use. The stragity will allow a customer to travel from place to place
using the same hand set or whatever. Also, the frequencies to be
sold will provide a place to move the mom and pop companies should
they choose not to sell out. This will get them out of a channel in the
middle of a bandwidth, again resulting in contiguous frequencies.

But I had thought that the previous auction had already given nextel
this ability. But my investor friend thinks that they still need more.
Nevertheless, he believes that going into the auction, that since
nextel has acquired some much of the channels within the bandwidth
left available to be auctioned, this puts nextel in the drivers seat
in the upcoming auctions since they won't be worth much to others
who don't already have positions within the frequency. This is why
pittencrief may yet be boughtout if they will deal. On the other hand,
nextel could aquire enough bandwidth in the next auction to be
compatible with the remainer of their network.

Steve, is this the way you understand the situation?
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