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Technology Stocks : WCOM -- Ignore unavailable to you. Want to Upgrade?


To: Alexander Hardin who wrote (2297)3/24/1998 6:32:00 AM
From: Loft Guy  Read Replies (2) | Respond to of 11568
 
WCOM may not need to buy a wireless company. With their post MCI
resources they could just form nonownership alliances on good terms.
Iridium, for instance, is owned by Motorola and they may not want to
sell when they want to find a partner.

Also, I remember a talk a couple years ago by some MCI engineering
executive and he said that wireless requires a huge amount of capital
with a fairly high number of competitors. He thought the best strategy was going to be purchasing excess capacity as that looked
cheaper (figuring in cost of capital) and lower risk than building
or buying a wireless provider.

Also, WCOM-MCI may be big enough that they may want to form partnerships with more than one wireless provider. "Get MCI if
you use Iridium or Alltel".