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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: RalphCramden who wrote (30068)	5/14/1999 4:23:00 PM
From: Michael Allard	Respond to of 152472

Mike: Good analysis! - Missing one point though.... the FCC really screwed up when they issued the licenses. Believe it or they did not file UCC Forms that would have protected the spectrum asset in the case of Bankruptcy. Had they done so, then the Bankruptcy judge would have to return the spectrum to the FCC in the event of default of payment. The FCC realized this prior to offering the C-Block licensees the re-organized favorable terms, and so demanded that in order to receive the favorable terms, firms had to sign the UCC's. But Pocket Communications had already filed for Bankruptcy, and the court had already re-valued their spectrum at 1/10 the auction price. Seeing this, Nextwave and others strategically filed for Bankruptcy protection, on the hope that they would get to keep their current spectrum allocation at a fraction of the price - and voila! (sp?)