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Technology Stocks : Clearnet, the Canadian wireless play (CLNTF)

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To: ZEUS who wrote (104)1/26/1999 6:00:00 PM
From: Jules Shear  Read Replies (1) of 214
 
Zeus, Thanks for the info-but one more question....

I thought that if CLNTF were to be bought out by current cellular provider (Telus, Bell Mobility, etc) that they would exceed Canadian government spectrum cap limits.

For example, Bell South lost a court case last week challenging the FCC's rule to exceed the 45MHz spectrum cap in the US. My understanding is that there is a similar rule in Canada although I do not know the exact amount of spectrum. Would'nt there be some overlap (which would exceed spectrum cap) between the cellular and PCS properties if Bell Mobility, Telus, etc. were to buy CLNTF?.

This would mean that either 1) the deal could not go through 2) Divestiture of properties must occur where there is overlap 3) Canadian government will be changing or relaxing the spectrum rules or 4) The overlap would not exceed the limits established by the Canadian government.

Any insights you had on this issue would be appreciated. I'm assuming by your earlier posts that you think the answer to this question is either #3 or #4 above.

IMO-this rule (combined with foreign ownership) is the single biggest factor which is slowing wireless consolidation in the US and keeping the small wireless companies (OMPT, WWCA, PTEL, etc.) from being gobbled-up right now.

Keep an eye on the regulators-if these rules change (which they are in the next year or so) the values of these smaller wireless companies (which have not been acquired already) will really shoot-up.
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