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To: Arnie Doolittle who wrote (8872)3/8/1999 6:32:00 PM
From: Rob Prickett  Read Replies (1) | Respond to of 10227
 
Arnie,

"I have yet to hear a good reason why CM would sell NXTL at this point. The closest I can get to an explanation is that he needs the money for Teledesic"

I'm almost on the same page as you with regard to many of your recent comments, but still do not understand the above (I know we've been through this a few times before).

Why does McCaw need to sell Nextel to get money for Teledesic? What prevents some type of operating agreement, whereby Nextel finances some portion of Teledesic in return for capacity. Wasn't that the idea behind InterNext? I know it didn't go to completion, but the arrangement had been made.

Or, assuming that Nextel has net income (which I think you are predicting for 2001), from issuing dividends which could be routed to Teledesic.

Don't forget: Teledesic is not going to be operational until late 2001 or 2002 at earliest. While a sale of Nextel could provide ample funds for Teledesic, there are other avenues.

Rob



To: Arnie Doolittle who wrote (8872)3/8/1999 6:45:00 PM
From: Tavros  Read Replies (1) | Respond to of 10227
 
Arnie,

A number of reasons, but 3 at least:

1. iDEN and MOT. CM is totally in MOT's bed, technologically speaking, and with no room to manouvre. Selling it is the best way out. In this respect MOT is more of a problem because it kills a product line for them. Incidentally, I also think that iDEN is dead-end as well. iDEN and MOT is a deadly combination in my view.
t
2. There is no end in sight in terms of capex. I think CM and everybody else, underestimated the amount of money needed to build this business, and the money needed a few years from now to go to W-CDMA.

3. I think it is very ambitious of CM to think that, single-handedly, can put together a full service phone company.

Tavros