To: Ruffian who wrote (2440 ) 10/17/1999 10:11:00 PM From: slacker711 Read Replies (2) | Respond to of 13582
Dont think I saw this posted....more on Nextwave.wirelessweek.com From the October 18, 1999, issue of Wireless Week NextWave Twist: Offer Broadband By Caron Carlson WASHINGTON--NextWave Telecom Inc., accustomed to playing defense to FCC attacks, boosted its offense last week by insisting it will not transfer its licenses to Nextel Communications Inc. in a private deal. Instead, NextWave will use them for a high-speed Internet access service called iBridge. The company is eager to demonstrate that it will put its C-Block PCS licenses into service for consumers once its reorganization plan is confirmed by the bankruptcy court. The strategy answers NextWave's critics' suggestions that the licenses--if not reclaimed by the government and re-auctioned or assigned to Nextel-- would eventually be transferred to Nextel anyway, without any benefit to the U.S. Treasury. The strategy behind iBridge is to build a second-generation network for fixed wireless services that can be seamlessly upgraded for mobility once 3G equipment becomes available. The focus on broadband differentiates NextWave from most PCS licensees and allows it to leapfrog a generation of technology. The company could have 30 to 40 of its top markets upgraded to full 3G mobility before 2002, says NextWave CEO Allen Salmasi. "It didn't make sense for us to become the sixth or seventh gas station peddling gas along with all the others," he adds. "By the time we would have completed construction of a primarily voice network, the others would be transitioning to third-generation." The iBridge service, planned for rollout in San Diego early next year and more than 40 other markets before 2001, is targeted to residential and small business consumers. It will provide Internet access at 512 kilobits per second--more than 20 times faster than today's average dial-up service--and complete local phone service as well. Retail prices will be roughly equivalent to prices charged by Internet service providers, Salmasi says. NextWave will provide customers with a fixed wireless modem the size of a laptop computer installed in a garage or basement with an antenna mounted either on the box or outside the house. Customers will use existing phones and computer hook-ups and may receive up to 16 wireless lines to replace or complement their traditional local service. NextWave touts almost a billion dollars in new equity pledged to build out the planned network. An investment group led by Texas Pacific Group, Oak Investment Partners and BFD Equity Associates committed more than $700 million in September. Some of the investors see the company's new emphasis on high-speed Internet services as particularly attractive. "As potential investors we believe [NextWave] management's strategy is on target," says Owen Blicksilver, spokesman for Texas Pacific. "We're believers in increased opportunities in broadband."