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Technology Stocks : The New Qualcomm - a S&P500 company -- Ignore unavailable to you. Want to Upgrade?

To: JGoren who wrote (5327)	1/17/2000 4:34:00 PM
From: Lance Bredvold	Read Replies (3) \| Respond to of 13582

Nextwave has irritated the FCC in my opinion (and I understand how their actions would have done so). It is important for LWIN to separate itself from Nextwave and QCOM in the FCC's eyes as a result. QCOM has become a huge force in telecommunications from most outsiders' viewpoints and the impression (and the fact) that SURF, LWIN, QCOM, KYO, et. al. are acting in concert must be avoided. At the rate LWIN is growing, I wonder if even they would qualify as a designated entity by July and new auction time. There must be some rule which allows them to remain qualified for some period without additional proof of smallness. As far as paying back QCOM, there is a curious statement in most SEC filings by LWIN which states words to the affect that there can be no assurance they can get their debt to the Q down to 50% by 1 January 2001 as required. It seems to me that is totally within LWIN's control. But they have stated already that they plan to use more of the Q line of credit for the new spectrum they are buying in N. Carolina (or was it S.), Pittsburgh, Denver, Dayton and for buildout. Clearly they are capable of raising considerably more money through either stock issuance or debt with the current excitement over their potential returns. I am guessing the Harvey White is gambling that LWIN will be even more in demand as 2000 wears on and he can raise additional outside debt capital at even more advantageous terms. But the current vendor financing agreements of $660mm plus from Lucent and Ericsson would seem to dwarf the (roughly) $250mm line from the Q. Why does LWIN's 10Q warn of the possible inability to reduce Q debt to less than 50% of the total? Incidentally, it is clear that LWIN is building out as fast as it can now that it's model seems assured of success and that they will acquire additional spectrum up to the maximum level for which they can obtain money. The company will be living on the edge for a while. Lance