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

To: Lance Bredvold who wrote (5329)	1/17/2000 7:02:00 PM
From: quidditch	Respond to of 13582

Why does LWIN's 10Q warn of the possible inability to reduce Q debt to less than 50% of the total?Could be that, for purpose of eligible entities' status, vendor financing does not count toward "debt", as counter intuitive as that might seem. In a high yield covenant package or other analogous context, vendor financing would be separately identified (but included in) debt. The FCC has screwed this up unbelievably. i. The Second Circuit points blame at a screwy statutory scheme (C-bloc for small cap entities to compete with the major carriers and bring competition to the market) but says the FCC has exclusive power to determine the terms of award (as long as in accord with Congressional intent). ii. The FCC says it will re-auction in accordance with C-bloc rules--if that's what it said, which would mean Nextwave would be eligible. iii. Nextwave has tendered payment in full--and a here and now business plan--for the same spectrum for which it might be forced to re-bid in July. iv. If the FCC alters the terms of the auction, every major and minor carrier whoever lost out in other auctions will carry their briefs to court. The FCC ranks right up there with the FAA for the most mis-managed agencies in our gov't. Airwaves + Aircraft and flight control. Seems like the Feds are smokin' something in their ozone layer. Steve

To: Lance Bredvold who wrote (5329)	1/17/2000 9:38:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 13582

The FCC owes QUALCOMM for denying a pioneer license for certain spectrum a few years ago. QUALCOMM sued and won. It seems to me that this event has been forgotten, but nevertheless it is a trump card that could be used either by Q or LWIN in bidding for more spectrum, possibly by being given the right of first refusal. That's why I think that for at least a portion of the spectrum sold to NextWave, Q or LWIN will have an opportunity to bid, regardless of how interconnected their financing is.

To: Lance Bredvold who wrote (5329)	1/17/2000 10:13:00 PM
From: JGoren	Respond to of 13582

At the risk of it already having been answered (since I haven't read the rest of the posts), I would speculate that disclosure regarding the "risk" of not getting the Qcom debt below 50% by January 2001 is just the securities lawyers being careful with their caveats. It seems to me that since Qcom released a lot of its warrants gratis ( was kind of hoping Q would spin them off to the shareholders but that may not have been possible given control status of certain equity owners in Q management), the least LWIN can do is not call upon Qcom to honor so much of its financing obligation. It seems to me that the company will obtain bridge financing from banks to bid on more spectrum and maybe reduce the debt ratio to Qcom, if necessary. It would use the bridge financing to make the initial payment to the FCC. Then, issue more stock to pay off the bridge financing, using the strength and value of the newly acquired spectrum to sell the stock. Or, it could use the proceeds from the stock offering to fund the build out in the new spectrum territories.