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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting -- Ignore unavailable to you. Want to Upgrade?

To: Kent Rattey who wrote (12074)	6/25/2001 9:09:58 PM
From: Kent Rattey	Read Replies (1) \| Respond to of 196959

ANALYSIS-Ball in NextWave's court for wireless licenses 6/25/01 3:53 PM Source: Reuters By Jeremy Pelofsky WASHINGTON, June 25 (Reuters) - The sweeping legal victory that allowed NextWave Telecom Inc. to regain valuable airwaves for mobile communications has focused all eyes on the company's plans for licenses that could relieve congested cell phone areas or underpin advanced new services. NextWave, in bankruptcy protection, gained new life on Friday when a U.S. appeals court said licenses NextWave won at auction in 1996 were illegally repossessed by the Federal Communications Commission (FCC) even after the company failed to make timely payments. "We believe that NextWave is in a strong legal position but we caution investors that it is likely to take some time for the dust to settle from the ruling," said Legg Mason analyst Blair Levin, who also is a former FCC official. Complicating a resolution is that the FCC split up the original NextWave licenses into smaller chunks and resold them in January with the intent to finally get the airwaves used. They were eagerly gobbled up by other wireless communications firms for $16.9 billion. NextWave has said it wants to launch an always-on mobile Internet service, one type of so-called third-generation (3G) service, while the winners in the re-auction had planned to roll out their own new services and improve existing operations. Shares of NextWave continued to climb on Monday, closing up 70 cents, or nine percent, to $8.50 on the Pink Sheets after gaining $4.70 Friday. At least four options lay before NextWave: It could launch its own service, seek payment from the government to abandon its claim to the airwaves, partner with another mobile communications carrier, or seek to be acquired. "It's our intention to build out the licenses ... that's what our investors want us to do," said Michael Wack, deputy general counsel for NextWave. There is greater "long-term value in doing that instead of a short-term bounce from flipping the licenses." Global Crossing Ltd., Liberty Media Group and Texas Pacific Group were among the company's financial backers when it was reorganizing under bankruptcy protection, he told Reuters, adding that NextWave will talk to them to see if they are still interested. Also included in its bankruptcy reorganization plan was a commitment from Lucent Technologies Inc. to provide the necessary equipment, Wack said. "Now the stars have aligned for NextWave because the newest generation wireless equipment is getting ready to be made available for our rollout," Wack said. "That will allow us to be the first carrier into the 3G always-on Internet data market." WHEN WILL AIRWAVES BE USED? The FCC has until early August to seek a rehearing of the case before the entire U.S. Court of Appeals for the District of Columbia and 90 days to appeal the decision to the U.S. Supreme Court, although Levin handicapped chances for success. "We believe the commission is facing an uphill battle, given the absence of a dissent" in the appeals court decision, he said in a research note. If the FCC does not seek an appeal, NextWave would receive the licenses and be able to offer service in key markets like Los Angeles, New York and Boston, making the company a key candidate for entering into a partnership or being acquired. Wack said NextWave "has been approached by lots of companies in the last couple of months" and talks "might restart" but he cautioned that the company has "always maintained was that our purpose was to build out 3G network and retain the licenses to do that." One analyst said while partnering is an option, NextWave has to come up with a feasible business plan. "The wireless industry is pretty competitive with downward pricing," said Paul Glenchur, an analyst with Schwab Capital Markets Washington Research Group. "It doesn't mean they can't do it, it's just a difficult environment." "We suspect NextWave may be tempted to hold onto its licenses, build out its network to the extent it can and keep open the option of working out its own deal with the industry parties after the litigation is over," Levin said. HURT BY COURT RULING Potentially hurt by the ruling are Cingular Wireless, the No. 2 U.S. wireless carrier and a joint venture of local phone companies BellSouth Corp. and SBC Communications Inc. and AT&T Wireless Group Inc. which need more airwaves to expand services. Cingular, bidding through an affiliate, won 79 licenses after bidding $2.39 billion while AT&T, who also bid through an affiliate, won 44 licenses with bids of $2.89 billion. "We think that AT&T Wireless, which has a 3G migration path that necessitates additional spectrum, could suffer delays as a result" of the ruling, said Bear Stearns analyst Todd Rethemeier. While the NextWave spectrum accounted for less than 10 percent of Cingular's licenses, the court decision "could impact Cingular's plan to expand nationally," he said in a research note. Analysts predicted the most difficult solution would likely be for a settlement to be negotiated between NextWave, the U.S. government and the winning bidders. "The price is likely to be steep, running well up into the multi-billion-dollar range, possibly combined with keeping some of its frequencies," Legg Mason's Levin said, adding a financial payment to NextWave may require an act of Congress. Copyright 2001, Reuters News Service

To: Kent Rattey who wrote (12074)	6/25/2001 11:23:25 PM
From: grinder965	Respond to of 196959

Taiwan to announce 3G standard in July date: June 25, 2001 The government will finalize the specifications of the 3G standard to be used in Taiwan in July when it promulgates the tender-bidding requirements, according to Tsai Ching-yan, minister without portfolio of the Executive Yuan. Some of the potential 3G operators are opposed to the early issuance of 3G license. Nevertheless, officials from the MOTC said that the government had decided to tender a bid for the 3G licenses before the end of this year after taking consumer and national interests into consideration, as well as government income, future telecommunication development trends, and available resources. The bid will be tendered with reference to experiences in the U.K. and Germany. In July, the MOTC will decide on either the European (WCDMA) or U.S. (CDMA2000) 3G specifications, the MOTC official said at a meeting with industrial leaders from the telecommunication and information industries. 3gnewsroom.com