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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable.
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To: p friend who wrote (1710)3/26/1998 10:46:00 AM
From: John Cinicolo   of 2063
 
<This means they are not planning to do anything now...Another example of an RBOC paying to keep competition out of their own territory.>

I disagree. Although buying the spectrum to keep competition out may provide some short term benefit, this strategy will fail miserably as soon as someone else comes with a viable service. Any Telco has a significant advantage in this type of deployment - an infrastucture to interconnect their LMDS cells to the rest of the world. Other LMDS operators need to build the backhaul infrastructure which adds to the total cost of deployment and hence the profits.

I would expect that the millions spent on the license is part of a business case to be profitable within, let's say, five years. By offloading internet and other data traffic off of their voice network, US West can significanty improve their services and reduce their costs. And on top of that, they can now start offering advanced multimedia services - digital video, and bundle it with their local phone and internet services for a package deal. I know I would listen if someone came to my door offering local phone service, digital video and high speed internet access for a flat fee that would be less that what I pay today for these services separately.

John
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