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To: Tim McCormick who wrote (18)	11/14/1996 11:31:00 PM
From: Ray Jensen	of 235

The recent MMDS contract flop affected the license for the San Francisco Bay Area, not the much larger Los Angeles/Orange County region that has the digital MMDS system mostly complete and ready for service in a couple of months to millions of homes. Hey, thats what happens when one party decides to try and pump more money out of the other after a price had been already established. I don't have a clue as to what SBC is really interested in as far as full service network deployment. I don't know more than what's been in the press. SBC is very bullish on wireless/PCS and long distance at the earliest possible date - two of the biggest reasons for the merger (PAC has PCS licenses for all of California and Nevada). I'm sure that high speed data access any way you can deliver it over existing network components is also high on the list - this has become way more important as a big near term revenue stream than interactive video. But, all telcos will continue in some way or another with broadband network deployment. Its just going to take a lot longer than most magazine articles ever said it would to get a large number of people equipped with a full service network. Ray.

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