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To: John Cuthbertson who wrote (7653)1/27/1998 4:59:00 PM
From: bananawind  Respond to of 152472
 
All... What the GSM folk are doing in the USA. At the quoted prices how long will it be before capacity constraints make CDMA overlay attractive? Also, AT&T must positively cringe at this stuff. -JLF

Powertel, Inc. Launches New Advertising
Campaign To Highlight Wireless Long
Distance Advantages

January 27, 1998

WEST POINT, Ga.--(BUSINESS WIRE) via Individual Inc. -- Jan. 26, 1998--Powertel, Inc.
(NASDAQ: PTEL), a leading wireless Personal Communications Service (PCS) provider
serving the southeastern United States, has launched a new advertising campaign
promoting its long distance plans. Through a series of newspaper ads and radio
commercials that tout its unlimited wireless long distance plans, Powertel believes
consumers will make a choice over landline phones to make long distance calls.

"In many cases, consumers and businesses can save money on long distance calling by
using Powertel's wireless PCS services over existing landline providers," said Mike
Bashaw, vice president of marketing for Powertel. "While we don't believe everyone will
replace their local phone with a wireless phone, we do believe many will make a
conscious choice to make long distance calls on a Powertel phone to save in long
distance charges.

"Another point we are trying to make is why pay several hundred dollars for a cordless
phone you can only use 600 feet from your house when you can purchase a Powertel
handset for less and use it across North America," Bashaw added. "This is a real value
to consumers."

Powertel's flat rate long distance plan is $5 per month for unlimited long distance calls to
any one state within Powertel's 12-state region or $15 per month for unlimited long
distance to all 12 states -- Alabama, Arkansas, Florida, Georgia, Illinois, Indiana,
Kentucky, Louisiana, Mississippi, Missouri. South Carolina, and Tennessee.

Created by Pollak Levitt and Chaiet of Atlanta , the campaign features newspaper ad
headlines that include "Our States. Our Rates," " Our plan covers 12 states, 47 area
codes, 2 time zones and 4 kinds of barbecue and one low rate" and "Cheaper long
distance than your home phone? " The radio spots feature a lady organizing a family
reunion with family members in all 12 of the states served by Powertel; by the time she
calls everyone, she says that this "was cheaper and easier than trying to mail
invitations."

In a separate promotion, Powertel is offering Nokia 2190 PCS digital handsets for $99.95
-- a special that offers an additional $60 savings through a $30 handset rebate and a $30
activation credit. Among the 330 outlets where Powertel phones can be bought are 28
Powertel stores in 25 metropolitan markets and Circuit City, Office Max, Computer City,
Radio Shack, Best Buy and Office Depot. The Nokia 2190 special will run from January
25 to March 31 or as long as supplies last.

Powertel, Inc. is licensed to provide wireless PCS services in 12 states to a population of
more than 24 million people in major cities including Atlanta, Augusta, Columbus,
Birmingham, Chattanooga, Jackson, Jacksonville, Knoxville, Lexington, Louisville,
Macon, Memphis, Nashville and Savannah. With service in 24 operational markets and
along major connecting highway corridors spanning seven states, Powertel has the
largest contiguous PCS network in the southeastern United States. The company
utilizes GSM, the leading technology for digital wireless communications deployed in
110 countries with more than 60 million subscribers. Powertel offers consumers and
businesses a variety of compact handsets featuring a secure portable phone, voice mail,
short messaging and paging services and a range of affordable pricing plans without
contracts. For more information on Powertel and its products and services, visit the
company on its web site at:

powertel.com

Powertel is also a member of the North American GSM Alliance, a consortium of seven
major PCS carriers which offer GSM service throughout North America. Through the
GSM Alliance, Powertel will expand its services and reach to allow customers to use
their Powertel phones, data and fax equipment in most major metropolitan areas in the
United States, Canada, Europe, Asia and throughout the world. GSM Alliance members
include Aerial, Bell South Mobility DCS, Microcell Telecommunications, Omnipoint
Communications, Pacific Bell Mobile Services, Powertel, Inc., and Western Wireless.



To: John Cuthbertson who wrote (7653)1/27/1998 5:47:00 PM
From: JMD  Read Replies (3) | Respond to of 152472
 
John, I refuse to attend the Q shareholder's meeting unless surf's up big time in San Diego that week. However, I am very concerned for the rest of you based on Ramsey's choice of restaurants. The meeting's at, what, 9AM/10AM? So the SI thread is gonna go to . . . .. .a Chinese joint? Pot stickers for breakfast? Thanks anyway, but I'll stick with my normal dollop of napalm in the morning. If it's good enough for Robert Duvall, it's good enough for Surfer Mike.
Now with SEA cusine disposed of, let's turn to the SEA Thing.
Ramsey, great work--particularly the country by country run down. I learned a lot about an area that I really need to bone up on (no snarls, pup). I also think you've got it just about right in that we're in the quantification of damage stage and 2nd Qtr earnings will tell the tale.
Particularly bothersome that Japan is key to the whole bowl of rice and they have fumbled and stumbled for 8 years with absolutely no signs of leadership. I think it very likely that they could surrender their economic supremacy to the on-rushing Tigers, presuming of course that those dudes get their act together. I have previously posted about Japanese decision-making paralysis. Well, time waits for no country and the Japanese have already squandered a hell of a lot of it. Very worrisome.
My only real nit-pick with you is the solutions part of your essay. IMF Mexico medicine is wrong for SEA, IMO, because SEA is an overcapacity problem whereas Mexico was a financial problem. In SEA, you've got too few consumers chasing too many products. In Mexico, you had too many pesos in circulation chasing too few products. The classic solution for Mexico was to put on the brakes, shrink the money supply, restrain lending, jack up interest rates, run government surpluses, all that fiscal/monetary jazz.
SEA is a whole different kettle of sushi--the Koreans save 40% of their earnings. Most SEA governments already run surpluses. The Japanese are also huge savers. Those massive savings have been channeled into productive capacity--factories that are spitting out VCR's, DRAM's, ships, cars, steel, what not. That output is not being consumed domestically (cuz everybody is saving and not running their credit cards through the roof unlike those red blooded Yankees who wouldn't know a zero balance if it fell on'em) so they export their bim-bims off.
But as Thurow pointed out, that kind of economic mercantilism only works for a while and only in certain circumstances. (Remember the two guys stranded on an island who went in to business taking in each other's laundry?) Ultimately, each country has to develop it's domestic economy which means that we don't need IMF austerity in SEA, we need to get these guys saving less and buying more of their own stuff. We need to pump up the volume, not turn it down. If AMAT sells some fab plant their handy-dandy wafer slicer, the resulting chips should be put in to Korean PC's and sold to Koreans, with maybe 20% or so getting shipped back to the U.S. for our PC guys and gals. The way out for SEA is not massive unemployment with the sinners taking their medicine cause unemployed folks tend not to buy a hell of a lot and besides the workers were not and are not the sinners.
I'm all for letting a few factories go bust, particularly those that will never be viable cause they were built by some guy's nephew to build something that nobody will every want or need to buy. But, you can't let too many go and yes I think Thurow was right in this: we couldn't let Chrysler go down, and Korea can't let the big 5 take a powder either. So, stimulate aggregate demand, don't squelch it.
All in all, some rough times ahead. But if Japan can just avoid going over the cliff ( a big IF), then I think the industriousness and work ethic and education of the balance of SEA will pull the region through faster than now seems possible. Japan is the key with big time implications for the world and for the Q--wish those guys gave me more confidence. Regards, Mike Doyle