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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable.
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To: Hiram Walker who wrote (790)12/28/1997 5:07:00 PM
From: James Fink  Read Replies (2) of 2063
 
The FCC is not stupid. It is not going to flood the auction market with spectrum in the 40-50 GHz band in the same year it is auctioning off LMDS spectrum in the 28 GHz band. In order to maximize revenues from the LMDS auction, I predict that the FCC will make it perfectly clear that no other such spectrum will be offered for sale in 1998. The FCC has already stated that additional auctions are a very "low priority." If companies sit out the LMDS auction, they will regret it because they will be waiting a very long time before similar spectrum is made available.

I think the complaining by potential bidders is just a bluff to force the FCC to auction off LMDS on a nationwide basis, rather than on a BTA-by-BTA basis. The FCC rejected a nationwide licensing approach in the PCS context because it would eliminate competition, and they will not change the LMDS auction rules for similar reasons. Once companies realize that the FCC cannot be rolled, they will participate in the auction.
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