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 : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Tavros who wrote (5149)	3/14/1998 8:01:00 PM
From: p friend	Read Replies (1) \| Respond to of 10227

I do not pretend to know much of anything about Nextel's LMDS intentions. Speculations: 1. Their management knows a lot about wireless communications and the buildout process and the marketing of the product. They simply recognized the great value in the major market LMDS licenses because they can see the wireless future better than the rest of the world. They bid in the auction to buy below cost a valuable resource (spectrum in major markets). If this is not a Nextel fit, then they are just making a good investment that will increase in value and be separately developed by another entity. Nextel will either sell this interest or maintain an equity position in the LMDS development entity. 2. Maybe their is a MegaNext in our future. Nextlink is a CLEC. Teledesic is a satellite wireless provider. Nextel is a wireless provider. NextBand is an LMDS provider. We shareholders will be laughing all the way to the NextBank with our returns from the colosus after the mergers. This is a long winding road, but a beautiful picture if it is the plan. 3. Maybe LMDS is just the Next business in Craig McCaws future. LMDS being fixed location wireless and Nextel mobile wireless, there does not seem to be any technology synergy to an amateur trying to follow this. My GUESS is number 2 above. Otherwise, why name them the same and use Nextel's and Nextlink's money. Craig McCaw could have bought the licenses himself if he wanted. No, the two companies have mutual plans in my estimation. The future synergy might be the marketing synergy, not a technology synergy. The businesses being developed as separate entities allows the capital markets to see them as simpler stories (still not simple by any means)and the managers to develop them more entrepreneurially. Then one failure will not bring the entire house down. If they all hit, then the combination will be even more valuable than the parts and the controlling shareholders will still be able to make the combination happen when they are ready. Yes, the annual meeting will be very, very interesting!