NextBand/WNP is going to run over WCII! See below:
Moody's last issued a ratings statement on NEXTLINK concurrent with the company's debt issuance in late February 1998, and that evaluation remains current. Recently the FCC concluded the LMDS auctions, which allows licensees to provide a wide rang of broadband services, including voice, data and video.
NEXTBAND Communications, LLC -- a joint venture equally-owned by NEXTEL Communications and related company NEXTLINK -- was high bidder on licenses covering 96 million people for a total price of approximately $135 million.
Each of the partners will contribute equally to the total bid price, the bulk of which will be due within the next two months.
Although this license payment amount is an acceleration in spending compared to the business plan, we have no indication that other costs, such as LMDS network buildout, would be significantly different from plan.
Further indications are that LMDS will be used as an alternative technology for NEXTLINK and not lead to a separate business development effort. We are somewhat guarded with these statements, however, since NEXTLINK typically will maintain its options so that it can modify its plans and take advantage of opportunities as they arise.
NEXTLINK plans to provide competitive telephone services on a national basis to small and medium-sized businesses. As of the end of 1997, the company reports over 50,000 access lines in 25 markets.
Conclusion: NextBand will use its newly acquired frequency to primarily provide WCII-like service rather than residential broadband. |
