"NextWave claims the FCC flooded the market with spectrum following the auction in which it
participated. The oversupply depressed prices, making NextWave unable to find financing to
cover its bids. "
You see! It's always the FCC's fault! Big Bad FCC.
If you read the Nextwave spin. Nextwave bid on Spectrum in Auction 5, and was the innocent party when the FCC held subsequent Auction 11, and "flooded the market with spectrum following the auction in which it participated. The oversupply depressed prices, making NextWave unable to find financing to
cover its bids. "
Of course. Nextwave fails to mention that they also participated in Auction 11 in which they claim the market became flooded" Nextwave bid an additional $497,000,000 for less than 1/3 the amount of usable spectrum per BTA, (10Mhz 6 CDMA carriers, vs 30 Mhz 22 CDMA carriers) in Auction 5. In addition, the Information that the FCC would hold an Auction for an additional 10 Mhz each D,E,F Block Auction after the C Block licenses was widely known since 1995!
If I buy a stock today, and the Company has already filed with the SEC to do a secondary offering! Do I claim that it is the companies fault that my share value decreased because they issued more additional shares in the secondary and the additional supply flooded the market?
Bad Nasty FCC!
PCSTEL |
