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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: MangoBoy who wrote (217)	5/19/1999 1:17:00 PM
From: MangoBoy	Respond to of 1860

RE: Spectrum valuation. Saw this article on Yahoo. It looks truncated. Comments? ---- WASHINGTON--When the FCC made a hefty 1,150-megahertz chunk of local multipoint distribution services spectrum available last year in La Crosse, Wis., for $295,769, the industry scoffed. But last week, folks at TLA Spectrum LLC decided it was worth $1.2 million to them. What a difference 15 months can make. LMDS spectrum drew a higher average net bid per POP in the re-auction that closed last week than in the original auction in February 1998. Assuming bidders behave with rational market principles in mind, the increased interest this year reflects improved perceptions of the band and better prospects for its deployment. Some examples: Nobody wanted the Davenport, Iowa, license when initially offered for $419,650, but Moline Dispatch Publishing Co. spent $1.3 million for it last week. The 150-megahertz license in Reno, Nev., couldn't lure $43,929 the first time on the auction block, but it commanded more than 20 times that sum from HighSpeed.Com LLC in the re-auction. The higher valuation of LMDS spectrum became apparent in the smaller of the two spectrum blocks--the B Block--early in the re-auction and ended nothing short of spectacular. Going for a net average of 45 cents per POP originally, the B Block commanded $1.02 per POP in the re-auction, showing a whopping 126 percent premium. The much larger A Block drew a net average of $1.23 per POP originally and $1.42 per POP this time. "One thing we have seen from this auction is increased credibility and increased confidence in these licenses," said Peter Jarich, broadband wireless analyst for The Strategis Group.

To: MangoBoy who wrote (217)	5/20/1999 10:18:00 AM
From: SteveG	Read Replies (1) \| Respond to of 1860

RE:WCII - fwiw, new money is moving (and IMO should continue to substantially move) in. Nextlink prices next week. <..WCII is making almost ZERO progress in migrating off-net lines to on-net...> To the extent this is true (I'll tentatively take your word for the numbers), I would suspect the known bottleneck (by way of backlog) of shorthaul/local backhaul (switch to hub) has slowed hub installs. So they focus on selling deeper into the hubs/radios they have installed (Millenium) while awaiting for new hubs/fiber-links to get up. Since they ARE selling very well into existing and newly up Millenium buidlings, no one views this as a problem. But I suspect this is why a deal will be announced sometime soon involving a shorthaul/local backhaul fiberco. (PS. Watch the next few days/weeks for Merrill on the bid)