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To: slacker711 who wrote (19274)	4/2/2002 8:23:43 AM
From: Elroy	Respond to of 34857

Given the focus on new, higher-end models, we believe there is negative bias to our unit forecast. But doesn't a focus on higher end models also imply a positive bias to their ASP forecast? What's more important to this guy, units or revenues? Elroy

To: slacker711 who wrote (19274)	4/2/2002 9:45:59 AM
From: elmatador	Respond to of 34857

BellSouth in talks on BCP debt default By Thierry Ogier and Raymond Colitt in São Paulo Published: April 1 2002 22:21 \| Last Updated: April 2 2002 14:55 BellSouth, the US telephone company, is looking to restructure part of an estimated $1.6bn in debt at BCP, the Brazilian wireless operator that defaulted on $375m debt last week. "We are in negotiations with our partners and banks to come to an agreement," said Jeff Battcher, spokesman for BellSouth, which holds a 44.5 per cent stake in BCP. "If we can't renegotiate that loan, the health of that operation is suspect." BCP, which has 1.75m subscribers, is one of the main mobile phone operators in São Paulo, the country's largest state. Local financial investors led by Joseph Safra also hold a 44.5 per cent stake in the company, which paid $2.6bn for an operating licence in March 1998 at the height of a telecommunications boom. Yet the premium price paid for the right to compete with Portugal Telecom in the country's most prosperous market is still weighing heavily on the company's finances. Increased competition in the cellular phone market and the economic downturn in Brazil also took their toll on BCP's performance. "The market did not increase as much as they had initially planned. The Brazilian economic situation also did not help," said Reginaldo Takara, corporate director at Standard & Poor's, the US credit rating agency, in São Paulo. BCP has yet to issue its financial statement for last year, but its losses amounted to some $180m in 2000 and R$2bn ($863m) during the first nine months of 2001. The debt to finance BCP's initial capital investment was contracted in dollars and was not hedged. The default occurred after a disagreement between shareholders, with Safra reportedly in favour of a fresh capitalisation of BCP. According to Elio Gaspari, a prominent Brazilian newspaper columnist, Ralph de la Vega, BellSouth president for Latin America, sent Mr Safra a letter at the end of last month saying BellSouth would not put in any more money until the company's debt was restructured. Yet the default has implications for the company's entire debt, analysts warned. "It is an alert for renegotiations of other debts because there are cross-default clauses and other lenders will have payments accelerated," said Mr Takara