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Technology Stocks : Winstar Comm. (WCII)
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To: Steven Bowen who wrote (10006)1/14/1999 2:45:00 PM
From: Bernard Levy  Read Replies (1) of 12468
 
Steve and others:

a) As indicated by SteveB, the 3 years period refers to
the time after which LMDS winners could sell their licenses
to RBOCs.

b) The money that WNP will receive is not all profits--
it will need to repay to the FCC a good chunk of the
discount it received on its licenses (the auction rules had a
recapture provision for the case an entity would resell
its licenses after taking advantage of the small
business discount).

c) The broadband wireless competition has become a 3 horse
race. On one hand, these news highlight the value of the
licences and business model. On the other hand, given
McCaw's connections and deep pockets, NXLK may be able to
place a lot of competitive pressure on WCII and TGNT.

d) ARTT will have an even tougher time securing
financing, since it has been in effect been bumped down
one notch in the broadband wireless market.

Best regards,

Bernard Levy
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