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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: Zorro who wrote (10057)	1/19/1999 11:37:00 AM
From: Steven Bowen	Read Replies (1) \| Respond to of 12468

Zorro, "First, it is based on incorrect numbers. You can verify your numbers easily on the FCC website." Not sure which numbers you refer to, but I went back and double checked the FCC site, and all numbers I used in my last post are correct. WNP's upfront payment was $100M Nextband's upfront payment was $50M LA did go for Nextbands second round bid of $2.48 per pop. The only thing I guessed wrong on was the auction went for 128 rounds, and I was remembering 70 some for some reason. "Do the math. It's simple." It's not so simple. As I stated, the up front payment only limited the number of bids you could make per round. "One might also speculate that WNP's real intent was never to build out its licenses, but rather to sell them for an early profit." That was the speculation from very early in the auction. "In which case, why bid up any top market with so many others to choose from?" Well, obviously because some larger markets have higher strategic value and would be more attractive to any potential buyers. Along this same line then, is why did WNP bid up Atlanta, Boston, Philidelphia, Chicago, etc, etc. WNP bid all these markets to a much higher per pop value than LA. They bid Boston, Philedelphia and Dallas to about the same price in total dollars that they gave LA away for. They paid almost twice as much in real dollars for Chicago as LA went for. To use your logic, why did they bid so much for these? Do you think Nextlink would have been interested in WNP if they had not won Atl, Bos, Chi, Dal, Mia, Phil, etc, etc? "At least in LA, WNP won the B-block license. I would have to check who won the other markets..." Nextband won them all. Brings up another point. Why would WNP bid $13.5M for about one tenth of the bandwidth in LA that they let Nextband have for $36M??? You'll pay up that much for 150MHz, but never even bother to raise a second round bid of only $2.48 per pop??? To me it's simple; it's because they knew practically no one else had submitted up front payments large enough to overbid Nextband. The only thing that is in common with the markets that WNP did not bid up was that Nextband was bidding on these markets.