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Technology Stocks : Nextwave Telecom Inc.
WAVE 6.010+0.8%Jan 9 3:52 PM EST

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To: Jean Muehlfelt who wrote (8)10/7/1996 7:51:00 AM
From: OJ Didit   of 1088
 
They agreed to buy 10 billion over a ten year time span. As part of the deal, Nextwave agreed to buy a bunch of services from MCI. Since Nextewave owes the government $4.3 billion plus whatever they spend at this latest auction plus interest, they will need a lot more than the MCI deal just to pay off their licenses.Haven't even added in construction costs, administartive costs, and that profit concept. Let's assume that MCI is paying a net 10 cents to 20 cents a minute....that means that over ten years, MCI would owe Nextwave only $1-$2 billion......where will the rest of their revenue come from? They'll need many multiples of what MCI has committed.
This one is too risky.
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