Subject: [NEXTEL-1] NextWave License Deal Would Be Big Boost For Cingular

From: [email-masked]
Date: Thu, 31 Jul 2003 15:11:54 -0400

NextWave License Deal Would Be Big Boost For Cingular
BY SUE MAREK
JULY 31, 2003

If Cingular should prevail in its rumored deal to purchase 34 licenses from
bankrupt NextWave Telecom Inc. for $1.4 billion, analysts say the move would be a
huge win for Cingular and would provide a much-needed boost to the operator.

According to various published reports over the past few weeks, unnamed sources
have said that Cingular Wireless is working on a deal with Nextwave, however
neither NextWave nor Cingular have confirmed the reports.

Nevertheless, experts say that such a deal would significantly strengthen
Cingular's position. "Cingular is at the bottom rung of the ladder when it comes
to spectrum," says Jeff Kohler, director, wireless banking services at Bathgate
Capital Partners LLC. "Their priorities are to expand their spectrum because
otherwise they are beholden to roaming agreements." Kohler says that while the
network-sharing and roaming arrangements that it has with other carriers have
helped Cingular to expand its coverage, the company must pay the other operators
for use of their networks and that prohibits Cingular from having competitive
pricing in several key markets. "If you own spectrum in New York, it doesn't kill
you to offer a no-roaming plan in New York. But if you're relying upon roaming
agreements, you are reluctant to do that," Kohler says.

In addition, Cingular's network sharing arrangements also may be making it less
marketable as a potential acquisition or merger target. "Cingular is not as
marketable when they have these other deals," Kohler says. If Cingular should
prevail and purchase licenses from NextWave, Kohler says the company will likely
make itself "more marketable for an acquisition. This will help its valuation for
a potential merger acquisition."

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=1&pubdate=07/31/03

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