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Technology Stocks : Winstar Comm. (WCII)

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To: Bernard Levy who wrote (4808)3/31/1998 1:24:00 PM
From: SteveG   of 12468
 
<..The one issue that concerns me on the other hand is how WCII will implement the P-MP retrofit of its current P-P system. Was this issue addressed by Bill Rouhana in the latest CC? Also this retrofit may mean that WCII will have paid significantly more for its system than recent entrants (TGNT, ARTT) which waited until the LMDS equipment was ready...>

Hi Bernard-

I am checking on this as well.

NBMO's initial response is that the cost to retrofit the radio (in quantity pricing) is about $4000. But there is not perceived a compelling argument to do so in the near future anyway. Two 100Mhz channels provide an enterprise with DS3 (45Mbps) capability, and this is perceived as sufficient for the next couple of years. The P-MP capability, as I understand you explained it, allows the further provisioning of the increased bandwidth, so that, as you explained, MORE buildings can be connecting - with an corresponding decrease in each building's dedicated bandwidth, but an INCREASE in the burst capabilities.

Apparently the businesses with P-P now, are large enough that they will USE the dedicated 45Mbps, rather than "sharing" a larger amount.

I am waiting to speak to CSFB and SSB research about this issue soon as well. Thanks for bringing it up! I am interested in any further questions you have in this regard.

Regards-

Steve

PS. I think WCII has pretty good support at 39-40, if it even gets there.
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