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To: Steven Bowen who wrote (10021)	1/14/1999 11:44:00 PM
From: MangoBoy	Respond to of 12468

[WSJ: Nextlink to Make Two Acquisitions In LMDS Arena for $833 Million] (great quote at end of article. -- mark) Nextlink Communications Inc., a phone-service provider controlled by cellular pioneer Craig McCaw, said it will pay about $833 million for two acquisitions that will make Nextlink the largest owner of wireless frequencies based on a new phone technology called LMDS. Nextlink, Bellevue, Wash., said it will pay $695 million in cash and stock to buy WNP Communications Inc., a Reston, Va., company that was the largest bidder in a federal auction last year of LMDS frequencies. The deal, which gives Nextlink 39 wireless licenses, includes $542.1 million paid to WNP and $152.9 million in license payments owed to the Federal Communications Commission. Nextlink also said it agreed to pay $137.7 million to buy out Nextel Communications Inc.'s 50% stake in Nextband, a joint venture with Nextlink that had acquired 42 licenses in the FCC auction. On the Nasdaq Stock Market Thursday, Nextlink's Class A shares rose $4.8125, or 15%, to $36.0625. LMDS, which stands for local multipoint distribution service, sends voice and data traffic between fixed locations using small rooftop antennas. The technology is designed to replace the fiber-optic cables now generally used to carry high-volume communications traffic. The technology was originally expected to challenge local-phone and cable companies, which control the crucial "last mile" of lines leading to homes and offices. But LMDS has taken off more slowly than some analysts expected. Nextlink said it remains committed. The company is building fiber-optic phone networks in most major U.S. cities, competing with phone companies to sell phone service to small and medium-size businesses. It wants to use LMDS to connect companies in cases where it would be too expensive to use fiber. Wayne Perry, Nextlink's chief executive officer, said LMDS's performance has improved and should do so even more quickly once his company steps up to provide guidance and firm orders to makers of communications equipment. "We are going to be the 800-pound gorilla when it comes to making decisions about where the technology goes," he said. "The market will take off as soon as people see some leadership."