CAI Wireless Posts 80,900 Subscribers At 9/30 -4-
FORM 10Q PERIOD ENDED: 09/30/96
SEC RCVD DATE: 11/05/96
ISSUER: CAI WIRELESS SYSTEMS INC.
SYMBOL: CAWS
CAI Wireless Systems Inc. had 80,900 customers at 9/30/96
subscribing to its wireless cable television systems, down from 83,800
at 6/30/96. At 9/30/95, the Albany, N.Y., company had 118,500
subscribers, which includes subscribers from the acquisitions of ACS
Enterprises Inc. and Eastern Cable Networks of Washington Inc. in
September 1995. About 32,900 subscribers for 9/30/95 are attributable
to CS Wireless Systems Inc., the company's joint venture with Heartland
Wireless Communications Inc., which became an unconsolidated affiliate
in February 1996.
On a pro forma basis, as if the ACS, Eastern Cable and CS
Wireless transactions had occurred on 9/30/95, CAI would have had 85,600
subscriber as of 9/30/95, as compared to 80,900 subscribers as of
9/30/96.
The net decrease in subscribers is due primarily to the loss of
3,800 subscribers at CAI's New York system, which is losing business to
hardwire cable-TV operators primarily due to inferior channel capacity.
CAI expects the trend in New York to continue until it builds digital
transmission facilities with greater channel capacity than the hardwire
cable operators currently provide.
Upgrades to digital has been substantially completed in CAI's
wireless cable, or multichannel multipoint distribution service (MMDS),
systems in Boston and Hampton Roads, Va., where the company plans on
marketing its services in conjunction with affiliates of Bell Atlantic
Corp. and NYNEX Corp. Bell Atlantic and Nynex have not yet formally
implemented their business relationship agreement with CAI, however,
Bell Atlantic has recently announced its intention to begin providing
video programming services in Hampton Roads using CAI's MMDS system in
early 1997. Nynex has unveiled plans to begin offering video services
in Boston some time during the second quarter of 1997.
Each of the Bell Atlantic-Nynex affiliates has until September
1997 to elect to use CAI's MMDS systems within their operating
territories. CAI's digital transmission facilities in Boston and
Norfolk-Virginia Beach are currently being tested by Nynex and Bell
Atlantic, respectively. The testing is not yet complete.
As a result of the construction experience in Boston and
Virginia Beach, both CAI and the Bell Atlantic-Nynex affiliates have
proposed amendments to their pact including, but not limited to, the
length of the option exercise period, the length of time within which
CAI must build a digital video delivery system and the waiver of certain
technical defaults under the agreement, as well as proposed amendments
concerning other aspects of the relationship. The parties have not yet
reached a definitive agreement with respect to the proposed amendments,
and there can be no assurance that such agreement will be reached. |
