Tero,
<< It's almost as if the US operators are intentionally isolating themselves from the world >>
The world is getting a bit smaller, methinks. The GSM Association (once thought of as a very European entity) now has an American Chairman.
The announcement is below and it is followed by a recent article about his parent company.
>> JIM HEALY - PRESIDENT OF COOK INLET VOICESTREAM PCS - TO BECOME CHAIRMAN OF GSM ASSOCIATION
Santiago, Chile April 25, 2000
James J. Healy, President of North American GSM operator, Cook Inlet VoiceStream PCS will become the new Chairman of the GSM Association on 1 May 2000, succeeding Michael Stocks, of South African operator MTN, who steps down on 30 April.
The GSM Association represents the interests of more than 440 second and third Generation network operators, satellite operators, key manufacturers and suppliers to the GSM industry as well as regulators, administrations - from 148 countries. The Association's members provide GSM services globally to more than 285 million customers (which is expected to exceed the 300 million landmark during early May 2000).
The Association is meeting this week for its 43rd Plenary - its global assembly of members - in Santiago Chile. Healy's successor as new Deputy Chairman will be elected during the week.
Outgoing GSM Chairman Michael Stocks said:
"Jim Healy has been an exceptional Deputy Chairman during the last year, and on behalf of all members of the GSM Association, I would like to extend our congratulations and best wishes to Jim on his accession as Chairman. He has an exceptional track record of success in the competitive US wireless industry, and his expert knowledge and more than twenty years experience in the telecommunications industry will be of immense value to the Association in the coming year and beyond." <<
and:
>> VOICESTREAM MINDS THE GAPS
April 3, 2000
teledotcom.com
Twenty years after lobbying the Federal Communications Commission (FCC) to divide wireless spectrum in the United States into small regional chunks, VoiceStream Wireless Corp. (Bellevue, Wash.) CEO John Stanton is working to piece together his own national quilt of coverage. Now his major concern is whether VoiceStream weaves carriers into its quilt or is patched into some other provider's blanket.
"U.S. market licenses have been fragmented terribly," Stanton says. "Our first mission is to complete the national jigsaw puzzle." Stanton's ambitious drive to build a national network for the cellular arm of Western Wireless Corp. (Bellevue, Wash.) aims to turn VoiceStream into a national wireless player that can compete with the nation's largest, including AT&T and Sprint Corp.
Last year, he launched the company on an aggressive shopping spree. In June, VoiceStream agreed to pay $4.5 billion to acquire global system for mobile communication (GSM) operator Omnipoint Corp. (Bethesda, Md.), a deal that closed in February. September brought a move to acquire Aerial Communications Inc. (Chicago) for $3 billion. That deal, which should close in the next few weeks, will give VoiceStream licenses across the Midwest with a network that already covers Houston, Minneapolis and Columbus, Ohio.
While the two deals extend VoiceStream's reach (see "Throwing Its Voice"), they are still not enough to give the company the nationwide footprint it so desperately wants. Its largest holes remain in California and the Southeast.
The 12-state Southern region is home to fellow GSM operator and potential acquisition target Powertel Inc. (West Point, Ga.). "There is no question in my mind that VoiceStream will get Powertel," says Callie Pottorf, research analyst at International Data Corp. (IDC, Framingham, Mass.).
For its part, Powertel refuses to talk about any potential merger and dismisses the rush for national coverage. "The wireless business is a local business. Most wireless calls are made within a 200-mile radius of the subscriber's home," says Joe Patterson, director of corporate public relations at the company. Nonetheless, Powertel recently introduced its own national flat-rate plan.
But after moving quickly to acquire Omnipoint and Aerial, Stanton is first letting his existing investments settle a bit. Fewer than half of the licenses under its control have been built out. VoiceStream needs to invest in building out its network coverage while maintaining its acquisition strategy--an expensive proposition.
Stanton argues that funding is not an issue. Since June 1999, VoiceStream has raised more than $1.5 billion from key international shareholders. "Frankly, it's very easy to raise money right now," says Stanton.
While the Powertel deal looks promising, Stanton insists he has other options for completing the national license puzzle, among them acquiring licenses in the upcoming FCC spectrum auctions. Many analysts, however, dismiss his comments as mere posturing. "It's just a way to get leverage with Powertel," says Adam Zawel of The Yankee Group (Boston).
And VoiceStream has turned into an acquisition target itself. SBC Communications Inc. and BellSouth Corp., which also have GSM operations, are desperately seeking to fill their own nationwide wireless network holes. BellSouth's wireless business--parts of which use GSM--extends to many of the markets covered by Powertel. After sitting on the sidelines while its sister companies have grown, BellSouth could see VoiceStream as a way to build out its national strategy. BellSouth refuses to comment on the speculation. Nor would it or SBC comment on rumors that the two Bells are considering pooling their wireless businesses.
The bulk of both companies' networks are based on time-division multiple access (TDMA) technology. But SBC, like BellSouth, also has GSM operations. These make up around one-third of SBC's wireless revenue, covering about 31 million people in California and Nevada--areas that VoiceStream also wants. Possible suitors for VoiceStream don't stop at U.S. borders, however, and Stanton says operators must look to the global, not just national, market. With the promise of a potential nationwide U.S. footprint--using the same GSM technology already deployed in their home markets--international players are likely to find VoiceStream attractive.
"VoiceStream is also one of the few ways left into the U.S. market," says Zawel. Potential bidders include France Telecom S.A. and Deutsche Telekom AG, which has reportedly been meeting with federal officials to test the waters. <<
- Eric - |
