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To: SteveG who wrote (8972)	3/31/1999 7:59:00 PM
From: SteveG	Read Replies (1) \| Respond to of 10227

from BTAB Jeffrey Hines and Bo Fifer: PCS Reauction Update: Day 7 HIGHLIGHTS: -- The re-auction of PCS frequencies continues after day 7 (31-Mar). After 20 rounds of bidding (the pace of the auction has increased to 4 rounds/day), the auctions have yielded net bids of $372 million. Early results, while not terribly significant, are nonetheless interesting (please see our note dated 22-Mar for identification of the top 10 qualifying participants). -- TOP FIVE BIDDERS BY NET BID (we note that an entity's bid amount can fluctuate (wildly) from round to round--as opposed to necessarily rising each round--if it loses a high bid position) Bidder Markets Bid ($Mil) Cook Inlet/VoiceStream PCS 22 186.1 OPCS Three 27 46.2 Viper Wireless 5 21.0 ABC Wireless 59 19.9 Leap Wireless 22 19.4 Source: Federal Communications Commission. -- TOP FIVE MARKETS BY NET BID Market Bidder Bid ($Mil) Bid/POP Chicago (30MHz) Cook Inlet/VoiceStream 117.8 $14.40 Dallas (30MHz) Cook Inlet/VoiceStream 62.4 $14.40 St. Louis (30 MHz) OPCS Three 14.6 $5.35 New Orleans (15 MHz) Viper Wireless 13.4 $9.80 Detroit (30 MHz) OPCS Three 13.1 $2.80 Source: Federal Communications Commission. -- RECENT BIDDING ACTIVITY BY ROUND New Net % Eligible Round High Bids Bids Chg. Bidders 17 45 $358M 2% 60 18 32 $362M 1% 60 19 53 $368M 2% 60 20 41 $372M 1% 59 Source: Federal Communications Commission. -- NET-NET: Time for stage 2? The auction is showing further signs of slowing down with net bids showing a sluggish, low-single-digit increase and, more importantly, bidders are slowly beginning to drop out (over 10% of qualified bidders have dropped out). However, plenty of bidders remain, and plenty of bidding credits remain eligible so it's likely still too early to draw any definitive conclusions. All ten of the top ten qualifiers remain eligible. Chicago and Dallas continue to draw the most bidding attention, and represent the top two bids on a per-POP basis at $14.40/POP and $14.40/POP, respectively, while New Orleans (another GSM hole) has attracted the 3rd highest bid on a per-POP basis, at $9.80. This compares with an average of $1.40/POP for markets with an active bid... Stay tuned.