Qualcomm Moderated Thread - please read rules before posting Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

QCOM 170.90

-1.3%

Nov 7 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jon Koplik who wrote (2433)	8/26/2000 11:49:04 AM
From: kech	Read Replies (1) of 196546

Jon- I talked to a friend who works at the FCC about the Nextwave fiasco and surprise surprise they don't see it the way we see it at all. By and large they don't see the pioneering technology that Nextwave offered at the time and they see that they paid way more for the spectrum than anyone else. The paradox is that they have an auction so it can go to the users that value the spectrum the highest. Then when these users declare bankruptcy because the FCC dumps more spectrum on the market right away they say it is because these guys paid "too much". They are barely willing to acknowledge some complicity in the problem of offering more spectrum for sale too soon but more or less claim Nextwave should have recognized this eventuality as a "business risk" before bidding so much. The issue about the FCC not doing the paperwork that makes the spectrum revert back to the FCC in the event of bankruptcy they attribute to being understaffed etc. There is no appreciation at all that under these circumstances Nextwave declared bankruptcy as a way of getting the spectrum price marked down to the lower price (given the FCC had floated more spectrum) and would not have been following its fiduciary responsibility to shareholders to not declare bankruptcy under the circumstances that the control of the frequency would still be an asset in the bankruptcy proceedings and FCC as a creditor would then get the lower price. So when Nextwave offers to buy back their spectrum later for the "full price" they say well of course they would, the spectrum is worth more now! All the FCC sees is a firm that wants something back that they previously abandoned once the value of the asset has gone back up. To support this point they say that some c-block buyers did make their payments despite the drop in prices.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next