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

To: Mark Fleming who wrote (870)	1/29/2003 8:10:05 PM
From: Jon Koplik	Respond to of 1088

Andrew Seybold's comments on NextWave : Seybold - What's Next (Wave)? By Andrew M. Seybold <andy@outlook4mobility.com> 29 January 2003 After years of legal wrangling, the Supreme Court has confirmed that NextWave can hang onto its vast spectrum assets--the largest block of unused spectrum available for the next generation of mobile communications. Since there wont be any new spectrum until at least 2006 and possibly 2008, there are many options now available to NextWave. The press and analyst community is having a field day with this story and there are many opinions as to what will be done with this spectrum. I have been researching NextWave's options for some time and have come up with the following scenario for the company and, as it turns out, for the entire wireless community. What Should NextWave Do with Its Spectrum? NextWave could sell the spectrum and call it a day, or as it has said all along, it could build out its network and make it available for others to resell. But there are already six nationwide wireless voice-and-data networks. Why would NextWave want to try to raise the capital needed to build out yet another voice network? Perhaps it is time to do something completely different. What if NextWave decided to build out a nationwide, high-speed (broadband) data-only network? What I propose below could propel the U.S. into the forefront of wireless once again. It could be used by all of the existing wireless operators and could attract funding from many sources both inside and outside of the wireless industry. There are companies that want to be able to deliver their content to customers at their homes, in their cars, in their offices and even into their pockets. There are major Internet providers that want to extend their access wirelessly (AOL, MSN, Yahoo, Earthlink, etc.), and other wireless operators that are faced with build or buy decisions that will find that in todays world, buying makes more sense and gets them to market more quickly. In my scenario, NextWave would fulfill its dream of a resalable nationwide network by using its spectrum to build out a CDMA 2000 1xEV-DO system optimized for high-speed IP data that would set the standard in the U.S. NextWave would lead the effort as the operator with major partners across many industry segments. All wireless carriers, ISPs, content providers that have an interest in broadband data services can resell this untethered last-mile network access. This makes imminent sense since almost all wireless operators are holding their unused spectrum in reserve for projected growth in voice services, either because of wireline replacement pricing that has broadly gone into effect over the last few months or because of lack of sufficient spectrum in major markets for deploying broadband wireless data services. Almost all are capital constrained with limited ability to commit to major capital expenditures or spectrum purchases. These operators can tap into a broadband wireless data network built out by NextWave at wholesale prices in the same way that they currently buy a wide range of broadband services and capabilities from Level(3) Communications and others. Since Qualcomm's MSM 6500 chipset supports 1xEV-DO, 1xRTT and GSM/GPRS, CDMA and GSM operators can bundle and resell EV-DO services from NextWave with devices that will also support voice and data over their existing networks. They could even provide nationwide roaming outside of EV-DO coverage areas with either 1xRTT or GPRS on the same device from day one. Think about what this could mean to U.S. consumers as well as the wireless community. There would be a nationwide mobility high-speed, high-capacity, wide-area network, perhaps tied into Wi-Fi hotspots where applicable, available for both mobile and fixed usage (where cable and DSL is unavailable) at speeds comparable to cable modems and DSL. There would be aggressive pricing, lots of great applications and content for the enterprise and consumer market segments across an amazing array of color-screen devices from camera phones to PDAs to laptops, tablet PCs, gaming consoles, set-top boxes and more. As it has in Korea and Japan, this approach can turbo charge wireless content/applications and device development in the U.S. This is not a case of if we build it, they will come. Rather, it is a case of if at least a few key players including NextWave come together and make it happen, they will have access to the one economically viable network that will be able to deliver content and services to consumers and business customers alike at very attractive prices. Companies will still be able to differentiate their service offerings with their existing voice and lower-speed data networks as well the content and services they offer. I believe that content providers and non-wireless Internet providers would jump on this opportunity. It is the best and fastest way to get a high-speed data connection to most of the U.S. population. It will not be an inexpensive undertaking, but if those that want to make use of this network step up and invest in it, the network can be built quickly and revenues can start to flow more quickly than with any network in U.S. history. If things worked out right, this network could be up and running in a significant part of the U.S. potentially years ahead of any other truly broadband technology and it would set the bar for data services in the U.S. In fact, some GSM/GPRS players might find it more economical to join the NextWave system than to build out their own 3G data systems, freeing up their limited and valuable spectrum for voice customers. The opportunity is "here and now" and the industry should support this cooperative approach for the benefit of all. There are no losers when everyone can tap into the same capability that energizes a mind-boggling array of new applications, devices and services for enterprises and consumers alike. This will give a significant early boost to the broadband wireless market making it ripe for new revenue opportunities for all wireless operators in the years ahead. What should NextWave do with its spectrum? I sure do hope they give my idea its due by going with "DO." The Outlook 4Mobility provides its news summaries and analyses free of charge. Outlook 4Mobility products and services include Consulting Services, Mobiltorials, Newsletters, Customized Proprietary Research, Wireless Tutorials and Conferences. Please visit our web site at www.outlook4mobility.com for additional information. Copyright 2003 Outlook 4Mobility