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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: gruetz who wrote (12167)	9/27/2000 12:25:07 AM
From: Bernard Levy	Read Replies (1) \| Respond to of 12468

Hi gruetz: From a technology and comparative cost point of view BBFW has a bright future. What's rough on the CLECS right now is that they are deploying comprehensive networks at a great cost in an environment where incumbents with much greater financial resources are fighting a battle to the death to defend their turf, and where debt markets are not very receptive to telecoms. I have no doubt that whoever will ultimately operate Winstar's wireless network after its build out will have on its hand a great cash machine. The problem is between now and then. Competitors with great amounts of money will try to drive it and other CLECs out of business to get the assets on the cheap, or debt holders would like nothing better than wiping out the equity holders and grab all the equity for themselves, or possibly WCII will be able to survive until the promised land of positive EBIDTA first, and profitability second. So who makes money out of Winstar is still up for grabs, but that broadband wireless is a superior way of delivering BW to customers rapidly and inexpensively is totally clear to me. My only advice is not to have more than 10 to 20% invested in the CLEC sector, and have it distributed over the most likely survivors: XOXO (what a horrid name), MCLD and WCII. The other advice is for investors to impress very strongly on Rouhana that grandiose worldwide dreams should be put on hold and WCII should be run thriftily. One aspect that has always troubled me is the exhorbitant stock option grants awarded to Rouhana. Time for him to tighten his belt. Regards, Bernard Levy