Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: James Fink who wrote (1166)	2/17/1998 9:27:00 PM
From: Night Writer	Read Replies (1) \| Respond to of 2063

FCC To Auction New Tech Licenses .c The Associated Press By JEANNINE AVERSA WASHINGTON (AP) - Companies are in a high-stakes bidding war over the biggest-ever airwaves slices to offer telephone, television and Internet services via new wireless technology. The Federal Communications Commission will begin auctioning licenses Wednesday for the new technology called local multipoint distribution service, or LMDS, and 139 companies are vying for them. The auction is expected to raise hundreds of millions of dollars. The new wireless service is delivered in a way that closely resembles cellular phone service. But to receive phone, television or data services, customers need a small receiver dish in or near a window. A total of 986 licenses are on the block. Half of them would give its owner the right to occupy a large swathe of airwaves - 1,150 megahertz - letting a company simultaneously provide 16,000 phone calls and 200 video channels. The rest of the licenses are for the rights to occupy a smaller, but still considerable, slice of the airwaves - 150 megahertz. One big license and one small license will be auctioned in each of 493 separate markets, every one roughly the size of a metropolitan area. The FCC hopes companies using the new wireless technology will provide services that compete with local phone and cable companies. The more licenses a company acquires, the more customers it can serve and the more flexibility it has in offering services. Richard Bergen, president of Hardin and Associates' LMDS consulting business, believes there will be more extensive bidding in secondary markets such as Pittsburgh, Salt Lake City and San Antonio where there is not as much competition from regional Bell telephone companies for wireless phone and data services than in the largest markets like Los Angeles and New York. Companies participating in the auction range from established telecommunications players such as Southwestern Bell and US West to upstarts such as Teligent Inc. and WinStar, to newcomers. Prior to the auction, all companies were required to give the FCC upfront payments. The more money a company put down, the more markets in can bid on. By this measure, the biggest potential bidder is WNP Communications Inc., which gave the FCC a $100 million down payment. Backers include venture capital funds Norwest Capital and Chase Manhattan Venture Fund. The second-biggest potential bidder is NEXTBAND Communications, backed by Nextlink and Nextel Communications, with a $50 million down payment. The third-biggest potential bidder with a $33 million down payment is BCK-RIVGAM, a group backed by Mario Gabelli, one of the biggest mutual fund managers. There will be no on-site bidding in the auction. Bids will be placed by phone or by computer. The auction ends when there are no new bids on any licenses. AP-NY-02-17-98 1326EST