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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: pkwknk who wrote (2717)	11/5/1997 3:23:00 PM
From: DubM	Read Replies (1) \| Respond to of 12468

Northern Telecom has not bought Broadband yet. Broadband is partly owned by Siemens and Newbridge Networks. It remains to be seen how it will play out. Teligent has announced a deal with Northern Telecom so it may not be in Winstar's best interest for Broadband to get bought by Nortel. Article follows. PS Randy, NC no doubt has the most members on the Winstar thread of any state. I also live just outside Charlotte. November 5, 1997 Teligent Taps Northern Telecom For Financing, Role in Network By STEPHANIE N. MEHTA Staff Reporter of THE WALL STREET JOURNAL Teligent Inc., the ambitious wireless start-up that aims to build a national system of local phone networks, tapped Northern Telecom Ltd. to build part of its network, supply equipment and provide $780 million in crucial financing. Headed by Alex J. Mandl, the former president of AT&T Corp., Teligent plans to offer local phone and Internet-access services to business customers, via its "fixed wireless" system that uses digital radio gear instead of regular phone wires. The Vienna, Va., company has licenses to operate in 700 cities and towns and expects to start offering services early next year. The Nortel-backed equipment financing adds greatly to Teligent's already considerable arsenal of capital for starting its network. Teligent recently received a $100 million investment from Japan's giant national phone company, Nippon Telegraph & Telephone Corp. And Teligent has filed for an initial public offering and $400 million in high-yield debt. By the time both offerings are complete, Teligent will have raised nearly $1.5 billion. "That's what's known in the industry as a good start," said telecommunications-industry consultant Peter Bernstein, president of Infonautics Consulting Inc. Mr. Bernstein said Teligent has enough money to quickly build systems in the 30 largest markets, which would enable the carrier to generate revenue and grab market share from the Baby Bells. A Teligent spokesman declined to comment on the contract, citing the company's "quiet period" in advance of its initial public offering. The Teligent contract also adds greatly to Nortel's rapid expansion into wireless technology and equipment. The Toronto-based equipment supplier said it beat rivals Lucent Technologies Inc. and Sweden's LM Ericsson AB to win the Teligent order, which calls for Nortel to supply radio and switching equipment and to oversee construction of the Teligent network. The network might also make use of equipment from other suppliers, Nortel said. An Ericsson spokesman confirmed that it had sought the Teligent contract. A Lucent spokeswoman would only comment to say, "We're still in discussion with Teligent on pursuing network business." Unlike leadersMotorola Inc., Lucent and Ericsson, Nortel is a latecomer to wireless. Nortel formed a special wireless division only in 1991. But last year the division posted revenue of $2.2 billion. Nortel will push especially hard into the fixed wireless segment of the market where it intends to be a "market leader," said Matt Desch, president of Nortel's Wireless Networks unit. Tuesday the company announced plans to acquire Broadband Networks Inc., a small Canadian company that makes high capacity, or "broadband," gear for transmitting phone and data messages in large volumes via fixed wireless networks. --------------------------------------------------------------------------------