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Technology Stocks : CAWS - Wireless Cable (New and Improved)

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To: BILL JAMES who wrote (40)11/1/1996 3:27:00 PM
From: Bill Mac   of 5812
 
Bill:
Check out this excerpt from the Oct.28 issue of Multichannel News:
"Telcos: We're sticking with MMDS"
All of the phone companies in the Americast group-Americtech Corp., BellSouth Corp., GTE Corp., SBC Communications Inc. and Southern New England Telecommunications Corp.- have ordered digital set-top converters that, with adapters, can run on MMDS systems as well as on hybrid fiber & coaxial cable, FTTC or DBS. But so far, the only Americast partner to commit any resources to digital MMDS is BellSouth. Stephen Weiswasser, CEO of the Americast telco consortium, said recently that he still thinks digital MMDS is an essential tool for adding video services while building wired networks over the next several years. End excerpt.

BellSouth wants to buy or build cable systems but has balked at excessive franchise demands by the cities. They'll play around with MMDS, gain some market knowledge that they truly lack, and take their sweet time building open video systems. Then they will put the death grip on all competitors through all the usual anti-competitive practices.
Besides, what is $45 million to eliminate a potential competitor to your $12 billion phone business. And that is what all this interest in MMDS, cable tv, et al is really all about.
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