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To: slacker711 who wrote (8543)	12/14/2000 10:46:14 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 34857

Regardless of how the Swiss spectrum is used (lets say it was voice-only), I think the spectrum will yield more than $18 per pop. As you certainly know, the spectrum license is just the cost of the entry ticket, so cash flows must be determined based on that price plus equipment plus operating expenses plus cost of capital etc. Still, given the great disparity between 18 and 500, one would think that an interesting arbitrage opportunity could open up here if the ROI were such a slam dunk. That nobody has availed themselves of said opportunity makes one wonder if it exists. Bigger point relates to credit largesse and effects of wireless malinvestment on global finance in the years ahead. I am a bit surprised at how many apologists there are for the German auctions...

To: slacker711 who wrote (8543)	12/14/2000 10:52:54 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 34857

It doesnt matter what the "inherent" value of the spectrum is, companies can only bid what they can afford A good point, that. Operative word is "afford". What does it mean? In nonbubble markets, "afford" is determined by discounting future cash flows. In a bubble, it is determined by how much dumb money one can amass. Gresham's Law says the bad money drives out the good, and perhaps that is what happened in Switzerland.