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: CAP who wrote (1331)	2/26/1998 12:46:00 PM
From: James Fink	Respond to of 2063

Southwestern Bell has withdrawn from the auction! Bandwidth Auction Draws Lackluster Response (02/25/98; 10:14 a.m. EST) By Jeremy Scott-Joynt SBC Communications has pulled out of the Federal Communications Commission's (FCC) broadband microwave wireless spectrum auctions, emphasizing the relatively low level of interest the auctions are attracting. About 205 of the 493 so-called "A-Block" sections of spectrum available as part of the auction are still without a single bid. SBC said it no longer had any interest in pursuing LMDS<Picture>, the technology associated with the frequency bands the FCC is auctioning. LMDS is a microwave delivery system for broadband data services. Officials at SBC said Tuesday the company preferred to concentrate on more tried-and-tested technologies, especially xDSL and ISDN. LMDS is still a technology at the teething stage, they said. SBC's decision leaves U S West the only local exchange carrier still in the running. After six days and nine rounds of bidding, the total revenue produce so far is $351 million. An FCC spokesmen said Tuesday the auction could easily continue for weeks, if not months, until no more bids were made. Two types of license are available: The A-Block, which offers 1,150 MHz of spectrum, and B-Block, which with 150 MHz is still bigger than any terrestrial license offered to date. A-Block bids are bringing in five times as much revenue as the B-Block, but more than 40 percent of A-Block licenses were shunned by potential applicants. Only 17 of the B-Block areas have no bids. It seems unlikely that much more revenue will be forthcoming. Although net income leapt from $193 million in the first round of auctions to $283 million in the third round, the total has only risen 7 percent in the last four rounds. The reluctance of U S West to go further in the auctions -- and of SBC to participate at all -- may also be due to FCC rules that prevent incumbent telecommunications carriers from taking majority control of an LMDS license holder inside their franchise areas. Still strongly in the bidding race is top bidder Nextband Communications, a joint venture of Nextel and cellular pioneer Craig McCaw's NextLink, which is offering $98 million for 18 licenses, including six of the top eight territories available. Also holding onto a top spot is WNP, which has bid $89 million for 30 licenses. WinStar bid $37 million for four licenses, and in one of the biggest bargains, Western Wireless subsidiary Eclipse offered a $12.6 million bid for 102 smaller, less urban licenses. Also in the running is AUCO, the subsidiary of wireless local loop company Teligent, which has outstanding bids on 56 license areas, predominantly in the B-Block.

To: CAP who wrote (1331)	2/26/1998 1:00:00 PM
From: James Fink	Read Replies (2) \| Respond to of 2063

From our friend Steve Bowen: If Las Vegas and Denver are worth at least $9.00 per pop, and Chicago is still at 2.66, DC at 2.48, LA 2.48, San Fran 3.49, Philly 3.14, Atlanta and Miami at 2.25, etc, etc, and trying to figure out the games that are being played, and realizing this will probably go on for another month, I would have to think this auction will go up by at least a factor of five ($2.8Billion). I just can't accept that Denver and Vegas are worth more per pop than LA, San Fran, NY, Chicago, etc. I'd have to think most people involved in the auction would have to know enough to understand that weather is a negligible and compensatable problem. Line of site and foiliage is another thing. That can be a problem. This still can't explain the auction. There probably isn't a better line of site, no foliage, dryer, highly populated city in the country than LA. And it's getting no action at all. And what a mass of densely populated, educated, high tech people you have in San Francisco who would love the high bandwidth. Heck, put a radio on top of Nob Hill (or whatever that big hill is called), and you look down and have LOS to every person in town. And what about Dallas, Miami, Atlanta, San Diego, etc. A lot of cities that seem to make as much sense as Denver and Vegas, but yet aren't getting any attention at all. It's all gotta be part of the games they're playing. Is it possible that this auction could have the taint of orchestrated or implicit collusion? That's illegal. But WNP and McCaw sure don't want to go head to head anywhere. Almost going out of their way to stay away from each other. Through Round 19, WinStar takes the lead this morning in San Francisco with a bid of $3.67 per pop. WNP was active, placing top bids in 5 major markets in round 19; Boston 3.87, Chicago 3.16, Dallas 3.16, Phil 3.34, and DC 2.81. Other big guns were silent; Cortelyou no bids, NextBand only 5 B-Block (Balt, Cleve, Det, Norfolk, and Syra), and BCK (Mario) only one B-Block (Reno). Bids now total $596,024,154 (414,487,335 after discounts)