PT and All,
(The reference URL is a PDF file and must be read using the Adobe Acrobat reader).
Here's what I got / inferred from the reference: 1) the auction was for the right to relocate into different spectrum, 2) Nextel paid $89 M (25 cents/share) for this right, which gives them contiguous spectrum, 3) this relocation will save administrative costs re: FCC paperwork when spectrum use is redefined (?), 4) the contiguous spectrum will allow for more efficient use / reuse of frequency, and 5) may have benefit for future next generation technology. To quote, "In short, the SMR win for NXTL gives its hidden option value to utilise its specturm in new ways in the future ... like a wild card which has unknown value".
For the group (in case you have the trouble finding the ACROBAT reader like I did) here's the CDMA comments (in reference to potential future benefits of contiguous spectrum): " .. the company may now be able to consider spread spectrum technologies which are currently in developmental stages (wide band CDMA) which they could not previously have used with non-contigous spectrum. These new technologies may have important future implications in terms of capacity, but there are no standing plans to migrate away from iDEN at this time."
PT, I have been "lurking" on this thread and have followed your recent posts. I am long NXTL, but actually appreciate bearish comments because, as has been said here, "it forces us to check our hole cards". I found the reference URL to be neutral or even slightly bullish (could be my bias). When I read your CDMA comment, I was shocked. As it turns out, the analyst said nothing of the sort.
We can have discussion here that will benifit all of us only if we present factual infomation.
A Pleasant Weekend,
Rob (long Nextel) |
