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

To: EdR who wrote (1291)	2/24/1998 2:19:00 PM
From: James Fink	Respond to of 2063

Ed, CVUS does not have the New York PMSA locked up. To be sure, CVUS has a lock in the 28 MHz band but WinStar has 900 MHz in the 38 GHz. band. Now the question is: "Can WinStar integrate its 38 GHz frequencies in the PMSA with its 28 GHz frequencies in the outer NY BTA (assuming they win) into a single service?" If integration is impossible, then WinStar would need to acquire CVUS.

To: EdR who wrote (1291)	2/24/1998 2:31:00 PM
From: James Fink	Respond to of 2063

Auction Id: 17 Date Entered: 2/24/98 12:41:02 Subject: Stage Two Transition The FCC will transition the LMDS Auction to Stage II in Round 14 tomorrow, February 25, at 9:00 a.m. ET. To maintain current eligibility in Stage II a bidder must be active on at least eighty percent (80%) of the bidding units for which it is eligible in each round beginning with Round 14. In Round 14 all bidders should check their activity to determine whether their current standing high bids are sufficient to maintain eligibility in Stage II. Bidders are reminded that they should review the Public Notice titled, "Auction of Local Multipoint Distribution Service," released on September 25, 1997. Specifically, pages 16 and 17 which explain auction stages, stage transitions, and activity requirements. In Round 14, a bidder can check whether its current activity satisfies its required activity level in Stage II using the FCC Remote Bidding System software. The system will reflect whether a bidder's activity is sufficient to satisfy its required activity level. If a bidder's standing high bids do not satisfy its required activity level and that bidder does not bid on additional licenses to bring its activity up to the required level or reduce its eligibility, the FCC will enter an automatic waiver on the bidder's behalf, if the bidder has waivers remaining. In the event that a bidder has no waivers remaining and they do not satisfy the required activity level, the maximum eligibility will be permanently reduced. If a bidder does not plan to bid in the current round and does not want to use an automatic waiver because it wishes to intentionally reduce its eligibility, the bidder may affirmatively use the "Reduce Eligibility" function on the Options screen. Use of the "Reduce Eligibility" function will permanently reduce the bidder's eligibility while preserving waivers. During Stage II, if activity is below the required minimum level, eligibility in the next round will be calculated by multiplying the current round activity by five-fourths (5/4).

To: EdR who wrote (1291)	2/24/1998 2:44:00 PM
From: Steven Bowen	Read Replies (2) \| Respond to of 2063

Ed, not sure what you mean by "CVUS has the NYC market locked up" or "Won't CVUS get in their way". WinStar will most definitly be a competitor to CVUS, but CVUS won't "be in their way" other than competition. Like Jim said, WinStar already owns 900 MHz covering NYC at 38 GHz. I'm presuming WinStar's coverage is similar to CVUS'. So either the A or B-Block would seem to make sense for WinStar. Remember the B-Block licenses are at slightly different frequencies (31 Ghz?) so they're not in their way in that reqards either. There is a lot more to operating a wireless business than just owning the airwaves. For instance in NYC, WinStar has spent years obtaining roof rights, getting interconnect agreements, obtaining CLEC authority, installing Lucent switches, building hub sites, staffing personel and sales forces, etc. Most of these, if not all, will directly translate to any LMDS licenses WinStar wins. The A-Block for WinStar will (I think) greatly extend the reach of WinStar's current NY network. The B-Block will add to their current NYC bandwidth plus extend their reach with the 150 MHz into the BTA. Either one makes sense. If someone other than WinStar wins the A-Block, it makes a little less sense, but like Jim suggested a ways back, whoever buys that may look to buy CVUS.