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Technology Stocks : METRICOM - Wireless Data Communications -- Ignore unavailable to you. Want to Upgrade?

To: Sanjay Varma who wrote (1434)	7/13/1999 4:07:00 PM
From: KellyW	Respond to of 3376

RED HERRING ARTICLE: SPOON FED VERSION POLE POSITION The analyst believes that despite the large cash infusion and MCI's backing, Metricom faces major challenges. "I still have a problem with the business model for Metricom," he says. Because Metricom broadcasts in an unlicensed spectrum, it does not own any spectrum assets, unlike other wireless companies. In addition, Metricom's strategy -- hanging transceivers off utility poles in urban areas -- makes it dependent on the permission of local government agencies and planning boards. "They're left at the whim of planning boards," Mr. May says. Meanwhile, competition is zeroing in. Roll-outs from the wireless networks of the three main wireless protocols -- GSM (Global System for Mobile Communication), TDMA (Time Division Multiple Access), and CDMA (Code Division Multiple Access) -- are expected soon. "They [Metricom] are going to have a hard time competing in the next three years," the analyst concludes.