Kami, glad to hear that...now take a read of this>
IBD article on WCOM-Sprint wireless plans
Sprint Tapping Wireless Cable For Net Play
It's buying companies on the cheap in bid to
provide wireless Web access - so are MCI
WorldCom, BellSouth
Date: 10/5/99 -- Author: Reinhardt Krause
There's more than one wireless match between MCI
WorldCom Inc. and Sprint Corp. Merging the two
companies would give MCI a thriving digital mobile
phone service, Sprint PCS. And both firms also are
targeting broadband wireless.
Both MCI and Sprint in recent months have acquired
struggling firms whose plans to bring cable TV
broadcasts to homes via wireless technology never
panned out. MCI and Sprint hope to use this
high-frequency radio spectrum to bring fast, wireless
Net access -rather than soap operas -to homes.
With two purchases complete and three more in the
works, Sprint will own spectrum that reaches about 30
million homes, mostly in Midwest and West Coast
markets. MCI, meanwhile, has acquired two firms
with spectrum mostly in the Northeast U.S.
Those deals would make a nice match, should the
Nos. 2 and 3 long-distance phone companies
combine, analysts say.
Both Sprint and MCI have bought, or are acquiring,
the wireless cable firms relatively cheaply. Their
strategy: Buy it cheap, fix it up and show it off.
That strategy works for homes and cars. It will work
for Internet access, too, says Timothy Sutton,
president of Sprint's broadband wireless group.
''The fact that we were able to get the spectrum
inexpensively helps us,'' he said. ''The fact these were
companies pursuing a flawed TV business model
doesn't change the spectrum's value. We have a lot of
work to do, but we think we'll move into markets
early next year.''
Interviewed last week, he wouldn't comment on talks
between MCI and Sprint.
Spending $1 Billion-Plus
Sprint is spending more than $1.1 billion this year to
buy wireless cable firms. But it still must spend
hundreds of millions to build out its broadband
wireless network. Like MCI, Sprint plans to use the
wireless spectrum to compete with the regional Bells
in local phone markets.
Lucent Technologies Inc. and Northern Telecom Ltd.
supply broadband wireless gear. Cisco Systems Inc.
and Motorola Inc. are partnering in wireless
networks. Other suppliers include California
Amplifier Inc.
To get Net access, wireless users buy pizza-box-sized
antennas that attach to the side of houses or go on
roofs. The receivers get signals from antenna towers
located up to 12 miles away.
While the technology works best with a clear
line-of-sight between antennas, Sutton says Sprint's
network will tolerate hills and trees.
Wireless cable spectrum works similar to another
wireless technology, also broadband but on a different
spectrum, used by start-ups such as WinStar
Communications Inc., Teligent Inc. and Nextlink
Communications Inc.
Those networks have more capacity and are better
suited for the needs of small and midsize businesses,
analysts say.
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