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

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To: Secret_Agent_Man who wrote ()12/6/1996 4:46:00 PM
From: Chris Ellip   of 5812
 
ALBANY, N.Y. (Dow Jones)--CAI Wireless Systems Inc. (CAWS) said it continues to stand behind its Multichannel Multipoint Distribution Service spectrum technology as a delivery platform for video, despite reports that its strategic partners, Bell Atlantic Corp. (BEL) and Nynex Corp. (NYN), are ''retreating'' from the use of MMDS due to alleged flaws in the technology.

In a press release, CAI dismissed reports that the MMDS spectrum is flawed, and said that tests conducted on MMDS were preliminary and adjustments would be made in the design.

CAI said that ''relatively minor modifications'' could be made to the system to achieve the coverage patterns required by Bell Atlantic and Nynex.

CAI said that its test market in Boston is capable of delivering service to about 1 million homes and in Virginia, to about 300,000 homes. The company said it believes, based on these systems, that MMDS ''is a legitimate delivery system for subscription television services.''
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