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

To: Bernard Levy who wrote (1114)	2/12/1998 4:27:00 PM
From: James Fink	Read Replies (1) \| Respond to of 2063

Has anyone heard whether Shant followed up on his promise back in September to make CVUS the exclusive marketing agent for CT&T's technology? See below: The Wall Street Journal Interactive Edition -- September 11, 1997 The Holy Grail CellularVision's grasp may exceed its reach, but it's a quest worth watching. By BARBARA MARTINEZ Will CellularVision blaze a trail? Among analysts' concerns is what even the company's prospectus calls a "potential conflict of interest." CellularVision's hardware and technology supplier is a private company controlled by Mr. Hovnanian's family and others. The private company, CT&T, of which Mr. Hovnanian is a partner, holds the rights to the technology used by CellularVision, and CellularVision purchases the transmitters and customer equipment from CT&T. In addition, according to the latest annual report, CellularVision granted CT&T an exclusive, royalty-free license to use any improvements the company makes in the licensed technology. For the use of the technology alone, CellularVision, which has never posted a profit, pays 7.5% of its quarterly revenue to CT&T. That amounted to $79,000 in 1995 and $149,000 in 1996. Some analysts want to see CellularVision have control of that technology outright and are concerned that if a better technology emerges, CellularVision's strong ties to CT&T will prevent it from going with a new system. CT&T also supplies companies in Canada, Thailand, the Philippines and Brazil. Mr. Hovnanian says that CellularVision has been "subject to most-favored-customer clause," meaning it gets as good a deal as any outsider -- but that the entire agreement with CT&T may soon change. Mr. Hovnanian says he expects to announce soon a new relationship with CT&T meant to dispel analysts' conflict-of-interest fears. Under the expected plan CellularVision will act as the exclusive agent for CT&T technology, with CellularVision getting some sort of compensation every time CT&T licenses its technology.