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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 173.96+1.4%Nov 11 3:59 PM EST

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To: Cooters who wrote (5543)1/21/2000 9:40:00 PM
From: Ramsey Su  Read Replies (2) of 13582
 
biz.yahoo.com

There are two odd ball systems in the US other than CDMA and GSM. One is ATT's still leading TDMA and the other is Nextel.

There are opinions that GSM is toast, or ATT is toast but it appears that Nextel may be the first to go.

If I understand the debt offering in the PR correctly, a convertible holder can buy Nextel stock at $148.80 anything time between now and 2010 while receiving 5 1/4% in the mean time. This is barely a 20% premium over a ten year period. Who wouldn't want these bonds?

Whats wrong with this picture?

Is the debt burden of Nextel so high that they practically have to give away the stock to finance more spectrum?

So if NW wins and gets to keep the spectrum, Nextel is toast now. If NW loses and FCC reauctions, and if Nextel is not the winner, Nextel is toast then. If Nextel wins the auction and ended up paying a huge price, plus then having to finance the subsequent built-off, how are they going to compete with Sprint, BAM etc etc?

So Nextel is toast sooner or later? How many subs do they have that will be divided by the survivors who hopefully would be CDMA based?

Ramsey
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