Winstar Comm. (WCII) Message Board

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Technology Stocks : Winstar Comm. (WCII)

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To: Bernard Levy who wrote (10007)	1/14/1999 3:02:00 PM
From: Steven Bowen	Read Replies (1) of 12468

"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)." Thanks for pointing that out, Bernard. I didn't remember that. That also explains the $152.9 that NXLK is paying to the FCC. That's not the license costs, that's the recapture. "NEXTLINK will pay approximately $542.1 million to WNP and $152.9 million in license charges to the Federal Communications Commission." So the math would work as; WNP paid $186.9 million for $339.8 million worth of licenses (they had a 45% bidding credit). 339.8-186.9 = 152.9 bidding credit recapture. WNP's profit then would be $542.1 - 186.9 = $355.2 million. Still not bad, doubling your money for a years worth of effort. Bernard, the release said "subject to Federal regulatory approvals". I'm sure this won't make the FCC happy, but do you see that they would they have any grounds to deny it?

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