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 : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Holton who wrote (3862)	2/18/1998 10:21:00 PM
From: MangoBoy	Read Replies (1) \| Respond to of 12468

[NBR: The FCC License Auction Begins] LINDA O'BRYON: The bidding has begun at the Federal Communications Commission. On the auction block are new licenses the Commission hopes will do what legislation has failed to do-jump start local phone competition. Stephanie Woods reports. STEPHANIE WOODS, NIGHTLY BUSINESS REPORT, CORRESPONDENT: The auction is being held by computer. What's at stake are the rights to use radio spectrum to carry voice, video and data at high speeds. Instead of spending time and money digging up city streets to lay fiber, wireless antennas can be used. It's a cost effective way to compete in the $100 million local phone business. JEFF GOLDTHORP, SENIOR DIRECTOR, BELLCORE: It's particularly viable for a new entrant coming in that has capital limitations and doesn't want to sink a huge amount of money in a wireline network. WOODS: 193 firms are competing for the rights to use the new spectrum. Two companies, Teligent (NASDAQ:TGNT) and Winstar (NASDAQ:WCII), already are using similar wireless technology to sell local service to small and mid-size companies. Analyst Jack Reagan says the ability to sell more services for a cheaper price has sales taking off at Winstar. JACK REAGAN, SENIOR ANALYST, LEGG MASON: I'll give you that high bandwidth, that Internet connection, your data capabilities, as well as your phone service for less. So I'm giving you more functionality for less and they're having a lot of success and quickly taking a lot of local market share. WOODS: To spurn more local competition, incumbent telephone companies and cable operators are barred from bidding on licenses in their local markets. And the FCC is giving up to 45 percent discounts for small business entrepreneurs. But some of the companies that will get the discounts have big names and big money behind them. WNP, which already has put up $100 million downpayment is headed by a team of former MFS executives and backed by Norwest Capital (NYSE:NOB) and Chase Manhattan (NYSE:CMB) Venture Fund. Nextband, with Craig McCaw behind it, is also a potential big bidder with $50 million in upfront payments. And a group backed by mutual fund manager, Mario Gabelli , has also formed a company that put up $33 million for the right to bid. These big money players getting big discounts has drawn criticism. FCC Chairman Bill Kennard defends the financial incentives as a way to build investment for the new technology. WILLIAM KENNARD, CHAIRMAN, FEDERAL COMMUNICATIONS COMMISSION: We want people to be able to compete in these auctions and compete in the market place. It makes no sense to set up criteria that in effect hamper people from being competitive later. WOODS: How fast competition comes will largely hinge on the business plan of the license winners. LSA, a new wireless network, could be up and running in about a year after licenses are secured. The auction will last as long as no new bids are received. A process that could take a few weeks or months. Stephanie Woods, NIGHTLY BUSINESS REPORT, Washington.