Any info on All Points?? I was really surprised to see someone step-up with a potential equity infusion for a company in such trouble as GSMI. Looks like All Points is also bidding on new licenses being reauctioned by FCC but I can't seem to find any info on them. Thanks in advance for the help.
The fundamental question I have about GSMI is that I don't know why anyone would invest in a company whose only real asset is a overpaid for FCC license to provide service in upstate NY/New England which has big interest payments and draining their precious cash flow.
There is already a glut of spectrum available and why large urban areas such as NY City/Los Angeles/etc. may need the whole 60MHz of PCS spectrum, clearly upstate NY/New England is in a different situation. GSMI has no customers, no network, and no revenue (from PCS company). So why would anyone provide $$$ to help this company when today a fraction of needed spectrum could be purchased from the other A,B, D,E,F block winners at a much lower cost? If I were RCCC, OMPT, etc.-don't quite see why GSMI is attractive. The bottom line is that many of the C block winners overpaid (over $15 per POP) and do not have the financial resources to make a go of it.
RCCC seems to be fairly shrewdly managed company with a good strategy or providing service in rural areas with existing networks-don't see much upside for them to bail-out GSMI now. Probably more attractive when GSMI gets to Chapter 11. Same is true for OMPT who is having their own problems with financing and much more focused on cities like Chicago. Maybe OMPT would sign an alliance to help with roaming rates, long distance, etc.-but don't really see anymore than that.
I am a GSM technology fan and want to see a nationwide GSM footprint and I hope GSMI can help contribute. But I am just really pessimistic about their short and medium term prospects. Their only asset just does not hold that much strategic value and not quite sure they have that talented of management team to pull-it off.
Finally, glad to see some activity on this board. GSMI Yahoo thread is really bad..Lots of bitter shareholders, immature posts, and personal attacks. |
