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

To: Steven Bowen who wrote (10100)	1/21/1999 1:04:00 AM
From: DreamWeaver	Read Replies (1) \| Respond to of 12468

Hello... Personally, I'd rather have our collective brain power go towards wealth creation i.e. how can we make money today, rather than digging in the dirt of that terrible auction. I lived through it once, and that was enough. I agree it smells. Let's move on. If this keeps up, you know who will return, and nobody wants that, do we? Let the past be. Plenty of FCC folks to dig if digging needs doing. I am happy that Wirelesswonk and Zorro are posting, please stay around, (now if Gentleman Boyle would just show, we'd have yet another key component in figuring out this sector). I can testify that this is the best Wireless Broadband thread you will find. WCII is back up over 40, plenty of new stuff to debate on the horizon: including more FCC auctions, and this new powerful competitive threat that materialized from the bowels of WNP. Also, What's up with ARTT this week? The news release that mentions numerous carriers signing an agreement with a major property owner (if I remember correctly) concerns me, as I consider WCII current state of build-out a strategic advantage. Oh BTW, Let's all make some money. DreamWeaver

To: Steven Bowen who wrote (10100)	1/21/1999 3:04:00 AM
From: wonk	Read Replies (1) \| Respond to of 12468

Steve: (with apologies to DW) In the major cities (population over 1,000,000 pops), the bidding creditused was 0.9pops. The minimum bid was $2.25 per pop. Therefore the ratio of dollars bid to bidding credit used was at least 2.5 (2.25/.9). Therefore for WNP to have placed minimum bids of $135M, they would have only used up $54M out of their $100M credit. I believe you are confusing dollars bid with bidding units. The top 30 BTAs (each over a millions pops comprised over 100 million bidding units. Therefore, WNP could simultaneously be high bidder in those 30 cities, regardless of the dollar amount bid, but place bids nowhere else. So with 100 million bid units, if in the first round they limited themselves to only bids in markets greater than 1.0 million, they could bid on 111 million pops (100/.9 = 111.1). Multiply 111.1 times the minimum bid 2.25, less the 45% discount = 1.23 = $137.5 million bid (111.1 (2.25.55) = 137.5), close enough to the actual 135 million net first round bid. It would be pretty time consuming to prove this, but if they only used up $80M in the final round, they probably didn't go over that in an earlier round.* You also have to factor in the activity rules. If memory serves 65% in stage 1, 85-90% in stage 2 and 99-100% in stage three. If you don't meet the activity rules, then you start to lose eligibility. Its in the later rounds, when the amount of eligibility is juxtaposed against the size of the next high bid is when things get interesting. Could be true, but I'd find it extremely hard to believe. Not to belabor the point, the DE Rules were a big, big factor here. ..Spending only $186 seems pretty cheap to me. I agree, they took a gamble and won. ww