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Technology Stocks : Netro Corp - (NTRO) -- Ignore unavailable to you. Want to Upgrade?

To: Rob Preuss who wrote (776)	2/5/2002 11:31:48 AM
From: Rob S.	Read Replies (1) \| Respond to of 792

They are up to stealing AT&T's "Angel project" advanced OFDM wireless broadband group for next to nothing . . $45 million plus conversion expenses of about $5 million. They do take on considerably more overhead but gain an exciting new product line that is expected to become about 60% of their business by the end of 2003. AT&T was ten years in developing this technology and system. They have maybe the most extensive patent portfolio on OFDM and other technologies for the new generation of wireless broadband. All of that gets thrown into the transaction. AT&T wrote down $1.3 billion for the disposal of the WBB group. And they had spent a lot more than that, probably several billions, over the years that has already been expensed. This is a sweet deal for NETRO is they can convert it to international standards and go after business in China, S. America, Africa, Europe, etc. OFDM has been chosen as the technology base for the new 802.16 WirelesMAN specification. The initial subpart of the spec was passed last December. It covers spectrum over 10 GHz. The spectrum under 10 GHz is scheduled to be passed by August. The Chinese have indicated that they may standardize on 802.16. They are set to open up 32 new spectrum markets by the end of the year. Only six have been licensed up until now (3.5 GHz). So this acquisition could result in at least three times as much business as Netro would have gotten without it. . . IF they execute well.