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To: Bernard Levy who wrote (2140)	2/24/2001 12:06:56 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 46821

Hi Bernard, I tend to agree with you about the residual value of the UMTS licenses. Since the killer app for the spectrum is voice telephony and not data, this will not go away. It will be competitive in its main purpose into perpetuity. You make a very good point about the continuation of licenses after the initial contract period has ended. In fact this is part of the concern I have with the upcoming US 3G licenses using some of the UHF frequencies. The incumbents are probably going to be able to extract more profit from the new license holders than they ever could as operating companies. The next big event is the 3G US auction (next Fall?). I haven't heard boo about this lately. Last I heard it was scheduled for May, but I believe you are right it must have been pushed back, else we would be hearing more buzz. Sometime I expect to see an auction with no bids and dirt cheap licenses. This is, of course, Craig McCaw's favorite wet dream. Best, Ray :)

To: Bernard Levy who wrote (2140)	2/24/2001 2:29:43 PM
From: GraceZ	Read Replies (1) \| Respond to of 46821

Sometime I expect to see an auction with no bids and dirt cheap licenses. You've hit on the fundamental reason why I always say it is almost always easier to start a business in a recession than in a boom.....if you have some cash. Vendors that wouldn't return your calls in a boom are falling all over you. You can buy equipment dirt cheap that no one wants to touch. You can get shell shocked laid off employees with reasonable salaries. Add all this up and you can be the lower cost provider of services that everyone who is hit with having to cut costs is looking for.