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Technology Stocks : Nextwave Telecom Inc.
WAVE 8.150-0.9%Nov 11 3:59 PM EST

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To: pcstelisaliar who wrote (763)4/11/2002 10:50:01 AM
From: Dennis Roth  Read Replies (1) of 1088
 
With the FCC set to auction more spectrum June 19th, biz.yahoo.com
before they've delivered to the auction 35 bidders, they're setting themselves up for claims of fraudulent conveyance if they try to make auction 35 bid prices stick. Hollings and McCain should have let the December deal go though if they wanted to maximize the dollars recieved for the government. With the uncertain fate of the auction 35 spectrum and the uncertain costs and timing of clearing the 700 Mhz spectrum of incumbants, how much can the FCC expect companies to bid for the 700 Mhz spectrum? If the 700 Mhz spectrum goes cheap, how can they expect to collect the full auction 35 bid prices?
How can companies like Verizon and AT&T rationally figure out how much to bid for the 700 MHZ spectrum and workout their spectrum plans if auction 35 is not voided? They don't know when or if the spectrum from auction 35 will ever be delivered but have to figure out what to bid for the 700 Mhz spectrum in June when they don't know if they will ever really need it.
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