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: P.T.Burnem who wrote (6407)	5/28/1998 1:51:00 PM
From: Arnie Doolittle	Read Replies (2) \| Respond to of 10227

"The chunk of spectrum they own really is unparalleled ... in its narrowness (10-15Mhz). To make things worse, the frequency band is not even contiguous. There are scores of smaller SMR players operating within the band whom Nextel must either buy out or pay to relocate." P.T., where were you during the good times? Hiding under a rock? I see you're back to your old tricks of half-truths and outright misstatements. So let's clear up the facts based on what Akerson said at the annual meeting. Here's a summary from my previous post: Thanks to the 475 licenses that NXTL won in the FCC Upper Channel auction, NXTL now has at least 15 mhz of spectrum in the top 50 U.S. markets (almost 20 mhz in Boston) and 11 mhz in the U.S. Ten mhz of that spectrum will be contiguous which will allow NXTL to have additional operating efficiencies than at present, thus adding to capacity. 15 mhz in the top 50 U.S. markets. Sear that in your brain because that's the salient point. The smaller markets don't require as much spectrum and NXTL's holdings are adequate for the job in those markets. The narrowness, as you put it, is in your vision. Go to Wal-Mart, buy some glasses from NVAL and then look again. Who besides T and FON has/will have a national wireless footprint? Answer: NXTL. T and FON have 25 mhz, NXTL currently has 15. But read the following CAREFULLY: 5 mhz of spectrum in each market is owned by non-emergency utilities for their private use. Understandably that spectrum is underutilitzed so NXTL has petitioned the FCC for permission to buy the spectrum if utilities wish to sell. Several utilities have expressed interest in selling to NXTL as long as they have no-cost access to the system for their existing private needs. Why would they do that? There's lots of reasons, including upgrades from analog to digital, wider area coverage, access to NXTL's North American footprint and they will no longer have to maintain the system. If the FCC allows it, this will be a HUGE WIN-WIN for NXTL and the utilities. Think about it - Our PCS competitors have 25 mhz of spectrum so NXTL could end up with 80% (instead of the current 60%) of the bandwidth that PCS now enjoys. What does it all mean? NXTL, if the FCC approves, will be larger than we previously expected in some, if not all, top 50 markets AND they will have 15 mhz of their spectrum contiguous. So the question becomes: How much is 80% of the wireless capacity of T and FON worth? Answer: Lots more than today's stock price. Arnie