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To: Eric L who wrote (15835)	10/16/2001 11:03:57 AM
From: Eric L	Respond to of 34857

re: FT on the Cingular GSM Move The alliance signals the final step in the alignment of the US wireless industry around the competing global technologies of GSM and CDMA. By choosing to use VoiceStream's GSM network Cingular, the second-largest mobile company in the US, appeared to throw its lot in with the mobile standard which dominates Europe and is widely used in other parts of the world. A formal announcement on the decision is expected within weeks, though the Atlanta-based company has delayed the decision a number of times in the past. >> US Wireless Groups to Share GSM Networks Richard Waters October 15 2001 Financial Times Two of the largest US wireless communications companies on Monday agreed to the country's first networking sharing deal, potentially relieving some of the pressure from spectrum shortages that have bedevilled the industry. VoiceStream, which was acquired earlier this year by Deutsche Telekom, and Cingular Wireless, a joint venture between SBC Communications and BellSouth, said they would share their networks in New York City, California and Nevada. The alliance signals the final step in the alignment of the US wireless industry around the competing global technologies of GSM and CDMA. By choosing to use VoiceStream's GSM network Cingular, the second-largest mobile company in the US, appeared to throw its lot in with the mobile standard which dominates Europe and is widely used in other parts of the world. A formal announcement on the decision is expected within weeks, though the Atlanta-based company has delayed the decision a number of times in the past. The deal will involve VoiceStream contributing its network in New York, and Cingular its networks in California and Nevada, to a 50/50 joint venture. The companies will retain separate marketing, billing and customer care operations, and will continue to sell under their different brand names. The agreement would not need the approval of Federal regulators, the companies said. Networks in the joint venture will cover more than 55m potential customers and reach three of the 10 biggest markets in the US. Similar deals have been agreed in Europe, where telecoms companies are seeking to share the costs of building third generation networks. In the US, such deals are seen as a way for wireless companies to get access to scarce spectrum and enter markets they could not reach before. Both Cingular and VoiceStream have ambitions to be national carriers, but lack coverage in key parts of the country. The deal will finally give Cingular access to New York, a city that it remained locked out of after an auction of wireless spectrum earlier this year. It was outbid at the time by Verizon Wireless, the wireless venture which is 45 per cent-owned by Vodafone. If Cingular opts for GSM technology it will join VoiceStream and AT&T Wireless, giving GSM the biggest foothold among national wireless companies in the US. Cingular currently uses a mixture of technologies inherited from its Baby Bell parents and plans to serve customers in New York, where it will launch a service next year, with dual-mode handsets capable of using different wireless standards. Two other big wireless companies, Verizon and Sprint PCS, use the rival CDMA standard. The sixth, Nextel, had been expected to adopt CMDA but instead said last week that it would remain for now with a separate technology developed by Motorola. << - Eric -

To: Eric L who wrote (15835)	10/16/2001 12:47:43 PM
From: carranza2	Read Replies (1) \| Respond to of 34857

From Michael Allard, a Q and NextWave investor, concerning the vaule to Q if the proposed settlement goes through. He quantifies it at about $110m. From Q Moderated: <<<I was an early investor in Nextwave as well. I purchased at $5/share, after QCOM and others had invested at $3/share. I recently sold my position at $9.60/share. I have since learned that the current value of the deal (after undisclosed dilution)represents roughly $16.50/share IF it gets through to closing. So the max upside for QCOM's 20 Million Investment (as reported in the FY1998 Annual Report)would be around $110 Million. Current market value (NXLC Trading at $11) is $73 Million. >>>>