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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (988)	2/5/1998 8:59:00 AM
From: gtc123	Respond to of 2063

NEW YORK, Feb. 5 /PRNewswire/ -- CellularVision USA (NASDAQ:CVUS), the first Super-Wireless, Local Multipoint Distribution Service (LMDS) provider commercially licensed by the FCC, announced today that the company will not be bidding in the FCC's upcoming LMDS auction. CVUS will be expanding its reach nationwide by offering its unique expertise and knowledge of LMDS broadband wireless operating systems to LMDS bidders. As founder of the LMDS industry, and the only company to offer commercial telecommunications services using an LMDS system, CVUS is primed to remain a major force in the broadband wireless industry. Services to be provided to LMDS licensees interested in being successful in the post-auction marketplace may include: business plan development; system design; vendor selection and support; system integration, back-office management and customer service. "We are the only company in the world with hands-on experience in commercially offering LMDS," said Shant Hovnanian, chief executive officer of CellularVision USA. "The system integration and operational know-how we possess is invaluable to any LMDS license holder who wants to make immediate use of the investment they make in the auction." The list of eligible bidders published by the FCC includes some of the largest telecommunications companies in the United States, as well as the majority of key players in the rapidly developing broadband wireless market. CVUS will immediately begin offering these bidders system integration support to assist them in bringing LMDS services to market quickly and efficiently. "After years of shepherding LMDS from concept to reality, we could not be more excited about the LMDS auctions. Given the companies that have come to the table, we are certain the auction will not only be a success, but will help prove the tremendous value inherent in our New York license," said Hovnanian. "The expansion of LMDS nationwide also provides CVUS with opportunities for new revenue streams. We expect that our system integration and support services will be very attractive to operators, and we intend to unify LMDS providers in national marketing and branding strategies to further increase the market share of LMDS services." CellularVision USA, Inc. is the first Local Multipoint Distribution Service (LMDS) provider licensed by the FCC. This license grants CVUS 1,150 MHz of spectrum throughout the 1,100 square mile New York Primary Metropolitan Statistical Area, which encompasses approximately 8.6 million people. This equates to 98.9 million channel pops, or the greatest regional delivery capacity of any broadband wireless carrier in the country. CVUS service is not currently available in all parts of its licensed service territory. CVUS provides Super-Wireless high-speed Internet access and multichannel subscription television service to its customer base, and is authorized to provide local loop telephony and other telecommunications services in the state of New York. For more information about CVUS, please visit the company's Web site at cellularvision.com. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties, including but not limited to the possibility that technological or other factors may cause the timing and/or capacity of new products to differ materially from those projected in the forward-looking statements. SOURCE CellularVision USA -0- 02/05/98 /CONTACT: Gretchen Roede, or Meghan O'Shea, both of The Tierney Group,

To: Night Writer who wrote (988)	2/5/1998 9:01:00 AM
From: gtc123	Read Replies (3) \| Respond to of 2063

My thoughts on the strategy: Interesting strategy. At first, I didn't like it. But, the more I think about it, I like it. They're refocusing their efforts on a high growth (LMDS services) market, less competitive market (LMDS services vs. local telecommunications market), where they are they would be the clear market leader, and I would think a potentially higher profit market (service margins are typically more stable than product margins). I'm not sure I'd want to see CVUS try to build out in another market anyways. The costs around that seem too large, and the returns are too long-term. This may give them greater near-term earnings potential. Plus, they still get the benefit of the auction valuing their NY license. My sentiments: an excellent move. What do you all think?