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Technology Stocks : Nextwave Telecom Inc. -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (757)	3/13/2002 11:05:11 AM
From: kech	Respond to of 1088

I definitely agree there is a big difference in valuation if one requires Cash and the other has liberal time payment terms. Also there is a big difference if one set of spectrum is separable and saleable and the other is not. Actually I am not sure the FCC appreciates this as much as you do since their principal argument is that Nextwave WAY OVERPAID on the first round. If in fact, Nextwave was just paying more for easy terms and separable spectrum this undercuts their argument. But I am surprised to hear that your argument is that the prices aren't actually lower in Auction 11. You are aware I assume that the bankruptcy court valued the Nextwave's sprectrum in the $1 billion range rather than in the $4.7 billion range that they bid. Is this because you think they did not make the adjustment for cash vs time payments, or separability of spectrum?? I really doubt that this is the case though I suppose it is possible. It may be that the FCC put a "current cash" valuation on the 4.7 billion in time payments, which actually means the gap was less than it looks.