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To: Peter Sherman who wrote (3558)	11/24/1999 1:08:00 PM
From: cfoe	Read Replies (1) \| Respond to of 13582

is this the first sign of T's capitulation I had the same thought when I heard the news. With the caveat (to me) to watch out for wishful thinking, here is my scenario. T has made a huge commitment of its capital to cable. Armstrong sees that he also needs to make another huge investment in upgrading to CDMA, but cannot afford to do both. Having made this commitment to cable, the question is how do they not get left at the gate in wireless, particularly data? The answer: separate the wireless business so that it can be valued separately from T, and be able to raise money and make the investments needed to move to CDMA (at least for data), with some "distance" from T. Maybe wishful thinking, maybe not.

To: Peter Sherman who wrote (3558)	11/24/1999 1:38:00 PM
From: Cooters	Read Replies (3) \| Respond to of 13582

<<is this the first sign of T's capitulation>> I like to look at T's decision from two different angles; First, If T expected their existing wireless business to start contributing handsomely to the bottom line, they would not creating a tracking stock. They would want those profits to flow into the combined income statement. Second, If T understands they need to spend a lot more money to upgrade their wireless network, they would need to break the business out, via a tracking stock, to not further harm their overall financials. Both items point to an overhaul. Just a matter of what the overhaul will be. We'll need some additional clues to tell. Cooters