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To: kech who wrote (34277)	7/8/1999 2:40:00 PM
From: Ruffian	Respond to of 152472

Cdma News> July 8, 1999 Dow Jones Newswires CTI Holdings/S&P-2: Expectations Of Reduced Leverage NEW YORK -- Standard & Poor's Thursday revised its outlook on Argentina-based CTI Holdings S.A. to positive from stable. At the same time, S&P affirmed its single-B-plus corporate credit rating on CTI, as well as its single-B rating on the company's $263 million ($150 million initial proceeds) senior deferred coupon notes due 2008. The rating agency said "The outlook revision reflects expectations that CTI's improved operating performance and GTE Corp.'s continuing support will allow the company to reduce leverage and heal its financial profile further. "The ratings on CTI reflect its still weak financial position, the sensitivity of demand to economic activity in the company's franchised service area, and the increased competition in the sector. These factors are somewhat offset by CTI's leading market share in its service areas, achieved operating improvements, and the financial and operating support of parent GTE Corp. "CTI has a perpetual license to provide cellular telephony in the interior of Argentina in an area that encompasses about 60% of Argentina's total population. Since it started operations in 1994, the number of customers have increased to about 714,000, a 4.2% penetration rate, as of March 1999. However, the company's service area has a lower population density and income per capita than the country's average, making it more volatile and sensitive to recessive environments. "Once the only cellular provider in its service area, CTI now operates in two duopolistic regional markets which will be entered by to new personal communications services (PCS) competitors each by year-end 1999. The company, with a combined overall market share of 47% in its two areas of operation, has started to convert its network to CDMA to better compete with the PCS providers. Digitalization is expected to reach about 30% of pops (population equivalents) in 1999. In addition, a consortium including CTI has been awarded a license to provide basic and long-distance service starting in November 1999," the rating agency said.

To: kech who wrote (34277)	7/8/1999 3:03:00 PM
From: Robert	Read Replies (1) \| Respond to of 152472

Unsaid and perhaps unknown by Mossberg is that they won't do that because they use TDMA and adding capacity is much more expensive than for their competitors -- further they will have to junk it whenever they move to 3G. It looks like AT&T has painted itself into a corner with the wrong technology. T will be adding capacity by expanding their network. It is still much more cost effective than starting from scratch They are also fully committed (at this time) to upgrading their network to EDGE Compact (85% IMT-2000 compliant). It is T's belief that EDGE is sufficient for Wireless data in the US. I'm loooonnnngggg Q and there is nothing I would rather see than T go to CDMA. We are kidding our selves if we think this will happen anytime soon. Robert.