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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: RCJIII who wrote (15351)	5/4/1999 9:18:00 AM
From: Sergio H	Read Replies (2) \| Respond to of 29382

<ATEL> iionline.com Analyst: Adam Lowensteiner (5/3/99) Sprint (NYSE: FON), the nation's number three long distance phone company has been cooking up a new game plan. In 1998, Sprint's ION program was announced with great fanfare. ION, which stands for Integrated On-Demand Network, will allow for high-speed communication access over one connection. 'You can do fax, phone, and Internet,' said Russ Robinson, Director of Corporate Communications at Sprint, 'all wireless over one network.' Sprint has already introduced its ION services to the large businesses market, but has recently attacked the consumer market. Like this Article? To complement ION, the company has made a new foray that has gone virtually unnoticed by investors. In the last two weeks, Sprint has acquired two off-the-beaten track bulletin board outfits. Both companies are involved in offering wireless TV services. Sprint is known for its vast communications infrastructure, which is the only nationwide all-digital, fiber-optic network. But with Sprint making these two 'minor' looking acquisitions, where is Sprint headed? Sprint's Vision Sprint purchased People's Choice TV (OTC BB: PCTV) for $485 million in cash. The company then ate up People's Choice's competitor, American Telecasting (OTC BB: ATEL) for $176.8 million in stock, and is assuming $281 million of American's debt. Both companies offer wireless services, including wireless cable TV services. The companies are only distinguishable by their geographic footprint: People's covers the midwest and southwest, while American covers mostly the western U.S. Sprint execs obviously see these firms as pieces of a larger puzzle. Sprint already has Digital Subscriber Lines (DSL), but still needs to rent the last leg of the call from the RBOCs (Regional Bell Operating Companies). By using broadcast spectrum controlled by American and People's, Sprint will be able to provide services to 55 markets in the U.S., and bypass the last leg of service by using wireless technology. Wireless enables Sprint to offer voice, video, and Internet over its ION service. The ION service is accomplished by using a small nine-inch antenna mounted on a roof (or side of a house). Using a number of transmitting towers in the area, which Sprint already has up and running, Sprint can reach about 80% of the households in reach of a tower. 'The broadcast spectrum technology can reach 35 miles,' said Robinson. 'It can also penetrate trees, leaves, and storms,' he added. These moves put Sprint two steps ahead of AT&T (NYSE: T). By going wireless, Sprint not only bypasses the RBOCs, but avoids the use of wires or cables that need repair, upkeep, or installation. 'AT&T is taking a different route,' said Robinson. 'There is a tremendous cost infrastructure to do cable.' He's got a point. Ma Bell admitted that TCI needs a better cable infrastructure than presently exists. Another problem with cable is that it is shared access, which could make the Internet slow at times.