<A> (from yesterday) Advanced Radio Telecom Up; Favorable FCC Ruling Cited
By Paula L. Stepankowsky
LONGVIEW, Wash. (Dow Jones)--Advanced Radio Telecom Corp. (ARTT) shares were trading up sharply Monday after posting a 7% gain Friday, activity an analyst said might be caused by a recent favorable Federal Communications Commission ruling affecting the wireless local phone industry.
Advanced Radio Telecom officials couldn't immediately be reached for comment.
Stuart Conrad, an analyst with Deutsche Morgan Grenfell Inc. in New York, said Advanced Radio Telecom could be benefiting from a more widespread understanding of the FCC ruling issued last week.
Conrad cited a story in Monday's Wall Street Journal that discussed how WinStar Communications Inc. (WCII) and other high-frequency radio license companies will benefit from the ruling, which will permit them to acquire large blocks of radio spectrum in each market.
The ruling, which is subject to a 30-day comment period, also permits the companies to offer something called "point-to-multipoint" service, in which a single radio "hub" communicates with several remote radios on different buildings.
"The trend of the favorable FCC treatment of these licenses gives these guys flexibility to use the licenses, which positions these guys quite favorably," Conrad said.
Conrad also said Advanced Radio Telecom's stock might be up because the company hasn't yet had the visibility of WinStar, although it's in the same business.
"It's a company with a very attractive package of assets with wireless licenses covering much of the country," Conrad said. "It's a company with not much visibility, while WinStar is going through the roof and Teligent is ready to go public. Advanced Radio Telecom has been kind of a sleeper over this time frame."
Advanced Radio Telecom holds a total of 276 domestic licenses in the 38 GHz band of radio spectrum covering 206 markets and an estimated population of 175 million, including 49 of the top 50 markets and 89 of the top 100 markets.
Shares of the Bellevue, Wash., company, which provides wireless broadband telecommunications services, were up 1, or 11%, at 10 1/8. Nasdaq volume was 144,300 shares, compared with average daily volume of 39,310.
Advanced Radio Telecom's stock may also be trading higher as more investors take a closer look at the appointment of a new chief executive for the company, said Conrad of Deutsche Morgan Grenfell.
"A lot of people haven't focused on it, but it will be well received," Conrad said.
On Oct. 16, the company announced the election of Henry C. Hirsch as chairman, president and chief executive, effective Nov. 3.
Hirsch was previously vice chairman and chief executive of Williams Communications Group, a wholly owned unit of Williams Cos. (WMB). During his 24-year tenure with Williams, Hirsch was president and chief operating officer of Williams Telecommunications Systems Inc., a time during which the company's revenue increased five-fold, Advanced Radio Telecom said.
Companies such as WinStar and Advanced Radio Telecom are considered to be strong competitors to such local phone service providers as the former Bell companies and GTE Corp. (GTE) because they can set up their equipment rapidly and offer national service.
The wireless "broadband" services Advanced Radio Telecom and others provide let companies transmit large volumes of voice and data traffic.
-By Paula L. Stepankowsky; paula.stepankowsky@cor.dowjones.com
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Advanced Radio CEO Says FCC Ruling Will Help Company
By Paula L. Stepankowsky
LONGVIEW, Wash. (Dow Jones)--Advanced Radio Telecom Corp. (ARTT) says it will benefit along with other wireless broadband telecommunications companies from a ruling last week by the Federal Communications Commission that expands the services they can offer.
Stock in the Bellevue, Wash.-based company, which provides broadband telecommunications services, closed at 10 1/2 Monday, up 1 3/8 from Friday's close of 9 1/8 after rising 7% in price Friday.
The company doesn't comment on moves in the company's stock price, said Lori Lawrenson, a company spokeswoman.
But Henry A. Hirsch, chairman, president and chief executive, said after the market closed Monday that the FCC order is a "real boost" to high frequency radio license companies that operate in the 38 GHz band of the radio spectrum.
"We are pleased that the FCC has incorporated much of what ART and other 38 GHz providers were requesting," Hirsch said in a statement.
In the ruling, issued last week but which didn't receive much attention until Friday, will permit companies such as Advanced Radio and WinStar Communications Inc. (WCII) to acquire large blocks of radio spectrum in each market.
The ruling, which is subject to a 30-day comment period, also permits the companies to offer something called "point-to-multipoint" service, in which a single radio "hub" communicates with several remote radios on different buildings.
Advanced Radio holds a total of 276 domestic licenses in the 38 GHz band of radio spectrum covering 206 markets and an estimated population of 175 million, including 49 of the top 50 markets and 89 of the top 100 markets.
-By Paula L. Stepankowsky; paula.stepankowsky@cor.dowjones.com |
