The *NEW* Frank Coluccio Technology Forum 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 : The *NEW* Frank Coluccio Technology Forum

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Raymond Duray who wrote (2137)	2/24/2001 3:03:07 AM
From: Bernard Levy	Read Replies (2) of 46821

Hi Ray: I think ww's post covered very well the tricky issues involved in valuing spectrum. I will add a small complement: I do not believe the auction winners (if they are still in business) will have to pay much to renew their licenses when they expire. Whether it's radio, TV or wireless licenses, an underlying principle is that the incumbent is usually entitled to keep its license if it is using its spectrum for its intended use. The primary reason is that the incumbent can usually show large expenditures for either infrastructure or for building a business brand and argue that in essence the govt action would be unfair if it were to take the license away. It is extremely rare that a license is pulled away, and in one case I recall (a radio license in Boston) misconduct was involved. In fact, when 3G becomes obsolete, I would not be surprised to see license holders petition the FCC (or its European equivalents) with a request to offer upgraded services. To go back to ww's analysis, this means the going concern value at the end of the license period is not negligible. Another aspect of these wireless auctions is that they seem to have waves like the stock market: extreme euphoria (C block licenses and the adventures of Nextwave- all Q admirers are still concocting strange reasons to assert it got a raw deal) is followed by deep pessimism (LMDS auction and simultaneous collapse of MMDS companies in 98) After the 3G auctions in Europe, I expected the latest C-block reauction would be a bust, but this did not occur. The next big event is the 3G US auction (next Fall?). Sometime I expect to see an auction with no bids and dirt cheap licenses. Best regards, Bernard Levy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next