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

To: MangoBoy who wrote (10479)	3/3/1999 1:27:00 AM
From: SteveG	Read Replies (1) \| Respond to of 12468

<..Financing: Can't offer specific details now, however Hirsch is "confident" that the matter will be settled "sooner rather than later"..> To ME, this whole anticipation of funding issue sounded less than convincing. With $10MM in cash and $6MM in credit facility left at 98YE, enough till approx summer indicates a much slowed (since little further capex until 38GHz P-MP available in commercial quantities) burn rate of ~$7-8MM/Q. (aside: the holdup with 38GHz P-MP was reported to be in getting fab yields for amps and receivers up.) <..ART has enough cash reserve to make it through the summer...> With virtually no capex, since they plan to "wait" for P-MP after summer. So I guess they will be selling into their current network and trying to arrange some favorable partnership or buyout deal. <..Buildout: 1999 plan is to build out the Western U.S.. The first phase is...> They need to raise $100MM to get $200MM capex from Lucent. Therefore, $300MM is needed to buildout their plan. Once built, they anticipate (approximately) cashflow breakeven after 24 months. They have about 300MHz of bandwidth in 49 of top 50 cities, less in top 90. (377MM channel pops / 186MM pops.) The P-MP they are anticipating using is a TDMA with "over the air" ATM. This use of ATM is purportedly necessary to allow ARTT to use bandwidth intensive TDMA (vs FDMA) on their relatively limited spectrum. Other notes, they have not even begun to put together the arguably most important part of their network infrastructure (the lack of which Royce Holland credits with being the reason that CLECs most often fail) They feel that their most important metric is securing building rights, followed by building their network, followed by customer orders followed by billing customers.