One last time about wireless cable companies and their appeal to the likes of Sprint, WCOM ect.
MCI WorldCom Buys Debt of Wireless Cable Providers
Jackson, Mississippi, March 30 (Bloomberg) -- MCI WorldCom Inc. acquired about $200 million in debt from several struggling wireless cable-television companies, as part of a plan to use their technology to provide Internet access and other services, a person familiar with the purchase said.
The second largest U.S. long-distance company bought debt of CAI Wireless Systems Inc., People's Choice TV Corp., Wireless One Inc. and closely held CS Wireless Systems Inc. MCI WorldCom purchased the bonds from a Merrill Lynch & Co. fund, the person said. The purchase was first reported yesterday by CNBC.
The wireless cable technology could help Jackson, Mississippi-based MCI WorldCom link directly to customers and avoid paying fees to lease local phone networks from companies like Bell Atlantic Corp. The company is buying the debt in a bid to gain control of the wireless cable providers, most of which are going through restructurings.
The company expects final agreements on the restructurings next month, the person said. MCI WorldCom officials declined to comment.
CAI, for example, emerged from bankruptcy protection last October.
The wireless-TV companies were granted permission last September by the U.S. Federal Communications Commission to offer two-data services, including Internet access, to help them compete against cable companies.
CNBC reported today that No. 3 long-distance provider Sprint Corp. may be interested in acquiring control of another bankrupt wireless-cable company, Heartland Wireless Communications Inc.
Officials at Sprint and Heartland weren't immediately available to comment.
Local providers like Bell Atlantic were initially interested in the wireless-cable technology, through they pulled out their investments in CAI and others over concern the costs of building the networks was too high.
MCI WorldCom shares fell 3/8 to 92 1/8.
16:52:01 03/30/1999
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