To: gdichaz who wrote (38581 ) 1/29/2001 12:49:19 PM From: Eric L Respond to of 54805 Cha 2, << Nextel seems to be about to join Qualcomm's network. Your take? >> Interesting. That would be a nice CDMA coup. Trick is for them to get (find money for the 700 MHz spectrum. Bidding could go VERY high. People bid for spectrum, not only to obtain it for themselves but to block others (including other technologies) from obtaining requisite spectrum. That of course was best exemplified by the Qualcomm backed NextWave Gambit in "C" Block which failed because financing dried up. The right financial climate plays a big part in thhis game. I think Sprint PCS would have gone for more spectrum in the recent reauction if the financial climate was more favorable. Also explains why QUALCOMM championing 700 MHz spectrum, and proacting towards it. Could also help advance the dual-mode CDMA-GSM cause since Nextel ESMR was the first non-GSM tecchnology to adopt SIM and go dual mode. Fingers crossed. It would be a nice win. I always wonder if there might not be an MCI WCOM in Nextels future. If not them ... somebody. Key points from your clip. >> As for additional spectrum for data service, Nextel (and hence Partners) is looking at a 1xRTT solution for 2.5G service. Initial intelligence suggests that 10 MHz is needed for 1x; based on that, Partners estimates it would need 15-18 MHz ultimately for both voice and data (1x also gives expanded voice capacity). We believe Nextel will go aggressively after another 10 MHz of spectrum in the upcoming 700 MHz auction (this is the auction of UHF spectrum currently slated for March 6, 2001). If Nextel were to win spectrum at that auction, Partners would have the right to buy that spectrum from Nextel. Given that many of the national carriers have garnered most of the spectrum they may need in the recently concluded PCS re-auction (see our note January 26, 2001), or at least spent a big chunk of their capital, Nextel should have a good opportunity to secure at least 10 of the 30 MHz to be auctioned. 1xRTT. As indicated above, Nextel is looking at using 1xRTT (a CDMA based service) to provide next generation capabilities. In 2001, Nextel is expected to trial the service, with a build out in 2002 and commercial service launch in 2003. By ’03, Nextel might wind up using 1xEV (enhanced version), which is expected to offer higher data rates and more voice capacity. Partners anticipates being a follower of Nextel’s data rollout, but timing is uncertain. For the time being, both carriers have packet based data capabilities in their networks. While ’03 seems a long way off, its only 1 year behind the scheduled launch of Sprint PCS’ nationwide 1xRTT service. << << - Eric -