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To: DubM who wrote (3263)	1/5/1998 9:37:00 PM
From: WWS	Read Replies (1) \| Respond to of 12468

DubM, consider the source--Merrill Lynch. ML was involved in the IPO for both ARTT and TGNT. I'll bet that ML analysts have a mandatory "mention" list consisting of all recent in-house IPO's. This cozy "quid pro quo" arrangement between the investment banking and analytical arms of the big brokerage houses is why I always like to look for possible "vested interests" before placing credence in such statements as these. Bill.

To: DubM who wrote (3263)	1/5/1998 11:55:00 PM
From: DubM	Read Replies (1) \| Respond to of 12468

Nothing really new in the following article, but does perhaps indicate a growing acceptance of broadband wireless. Notice that TGNT had 97 sales of just 1 million. Yet, it has a much higher market cap than WinStar. Go figure. Wireless broadband gets boost -- New spectrum, financing helps move industry forward Teri Robinson Wireless broadband, billed as a possible competitive alternative to local telephone service and Internet access over copper wires, could soon become a viable technology option, thanks to several recent developments. The FCC decided to auction off more spectrum for wireless broadband services and one competitor received a large infusion of cash and placed a major order for equipment to build out its network. "Wireless broadband has been under discussion for the past three to five years," said Michael French, vice president at Insight Research Corp., a Parsippany, N.J., research company. "However, a combination of technology advances and market demand finally is making it quite real. The driving force behind all this is the increasing competition in the local loop and the number of new carriers that want to move into local markets by using wireless broadband services as the backbone." The industry received a boost when the FCC recently decided to allocate a large amount of additional spectrum for wireless services. The commission said it will auction off spectrum for local multipoint distribution service, which includes wireless broadband services, later this year. The move will allow companies such as WinStar Communications Inc., in New York; Teligent Inc., Vienna, Va., and other wireless carriers to gain additional frequencies in their current markets and to expand into new markets. WinStar, for example, wants to use additional spectrum to expand beyond the 21 current markets and 139 prospective markets that make up the centerpiece of the company's strategy. The company already has begun to sign up customers and last year reported revenue of $68 million. WinStar likely will be competing against companies such as Teligent, a start-up headed by former AT&T president Alex Mandl. So far, Teligent has announced big plans, but shown little action. The company's 1997 revenue was just $1 million. But that could change quickly now that Teligent has shored up its financing. In September, Tokyo-based Nippon Telegraph and Telephone Corp. pledged a $100 million investment in exchange for a 12.5 percent equity interest in the company. Teligent's founders, The Associated Group and Telcom Ventures LLC, an affiliate of Digital Services Corp., made a $60 million commitment as well. At the same time, Teligent named Northern Telecom (Nortel) in Ontario, Canada, as the supplier and integrator that will help link its local wireless digital operations into a comprehensive network. Teligent plans to target its offerings at small-to-midsize businesses. "We basically will compete with the Bell companies," said Robert Stewart, vice president of communications for Teligent. He said that "is a highly underserved market. About 90 percent of the business lines in this country remain connected to the Bell, GTE and large [telcos]." The company now has the funding necessary to build its network during the next three years, which should provide enough time for it to become a formidable wireless broadband competitor. And teaming up with Nortel will allow Teligent to more quickly exploit the licenses it holds for 24-gigahertz radio spectrum in 74 different markets representing 700 U.S. cities and towns. Making the point Among other things, Nortel will provide its Proximity B fixed wireless access systems for point-to-multipoint wireless ATM access. The Proximity B systems will also be used with Nortel's AccessNode Express remote access systems. Teligent will also offer Nortel's popular switching systems, DMS-500 Local/Long Distance and Passport ATM. The Teligent agreement is just one of the wireless broadband initiatives undertaken by Nortel. The $12.8 billion Canadian company recently strengthened its presence in the market by purchasing Broadband Networks Inc., a Dallas-based company that specializes in the design, manufacture and deployment of fixed broadband wireless communications networks. Nortel said it plans to encourage service providers to use Broadband's technology to market voice, video and Internet services. It is still unclear how the big carriers such as AT&T, MCI Communications Corp. and Sprint intend to get involved in the wireless broadband activity. "The big unknown is that we don't know what carriers will be doing during the FCC auction," said Mr. French. "Will they be players or sit on the sidelines?" There is some speculation that one of the large carriers might buy a company like WinStar and use its technology to penetrate local markets."There's definitely going to be a consolidation and there will be purchases in the next few months," Mr. French said. Teri Robinson is New York-based freelance writer. E-mail your reaction to this article to telepath@cmp.com. Copyright (c) 1998 CMP Media Inc.