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Technology Stocks : Winstar Comm. (WCII)
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To: Ross Abrams who wrote (822)2/26/1997 11:53:00 PM
From: Richard Dunaven   of 12468
 
The 10 Ghz licenses that AT&T has and will use for the new local fixed wireless is a point to multipoint frequency similar to the new 1.9 Ghz used for PCS. It will be used to transmit voice and data only and will tie into the PCS systems so that you can roam with
one phone anywhere. The 10 Ghz and Pcs signals will go to a remote transmitter and then the signal will have to be carried back to a cell and then to a microcell. From the microcell the signal has to be transmitted back to the switch. From the cell to microcell and microcell to
switch the system can use either hard wire (Baby Bell) or 38Ghz. 38 Ghz is a point to point transmission and is used for Broadband highspeed transmission. The AT&T system will be used in conjunction with 38 Ghz where 38 Ghz will be the main backbone of the wireless web.
It does not have the speed or video capability of 38 Ghz. It is a low volume use system only similar to cell phone or PCS. It also can not be used to establish a local wireless network with point to point capability that WCIIcan in a city. Eventually WCII
through the use of Hubbing will be able to direct signals around a city to feed 75% of all buildings. There is no replacement for the Wireless Fiber 38Ghz system. It will be the spokes of the wireless system of which 28,10,1.9 and .9 Ghz will be a part of.

Keep in mind here that while the wireless business of backhauling info from the .9, 1.9 ,10and 28 ghz systems will be a nice part of WCII's business their focus and main revenue generating business will be the CLEC business and the 17.7 Bil in revenue that the 8500 bldgs
in the 41 markets generate. These buildings will only be served by baby bell because they are too small for fiber caps to serve. WCII will be the only alternate. The CLEC business will generate multiples of revenue compared to the Wireless and backhaul businesses.

ARTT has mostly single channel licenses and can't really use them for the CLEC business like WCII's multichannel licenses. ARTT will serve the backhaul/wireless cap business but there will be enough for all as the country makes it's way to a wireless system.

AT&T is no threat to WCII's business and they do not have 38 Ghz licenses. I'm sure they wish they did though.

There is no other 38 Ghz license holder with near the capacity or # of channels to attack the CLEC business which is where WCII will really clean up.

I hope this clears up some of the confusion!
:
See Ya!
:
Ric D.
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