Subject: [NEXTEL-1] Wall Street On Nextel's FREE Spectrum- Goldman Sachs Estimates Its Worth at $5 Billion.

From: [email-masked]
Date: Mon, 06 Oct 2003 13:54:24 -0400

Goldman revises spectrum worth-

In a  Oct 5, 2003 reports,  Wall Street Analyst Frankie "G." ( Frank Governali)  over a
Goldman Sachs Says.....

"We estimate that the 1900 MHz spectrum that NXTL wants to receive is worth  about $5bn,
assuming 10MHz, 280mn POPs and a price of $1.80/MHz/POP. We reach  the $1.80 by assuming a
15% premium to prices paid recently for 1900MHz  spectrum, such as Cingular's acquisition of
NextWave spectrum. The premium  accounts for the spectrum being allotted in one, nationwide
block."

Lets do the math (again).......

    $2.00 Billion
+   $850 Million                                        $5.0 Billion
-----------------------                          ----------------------
$2.85 Billion                   v.                 $5.0 Billion (lowest estimate)= WIN-WIN
Nextel

Which would you pick $2.85 Billion of mainly (Non-Contigous spectrum) or $5.0 Billion (
worth of Contigous Spectrum)?

NEXTEL

On    1/6/2003 12:09 PM Marcel wrote:

> My point exactly-
>
> Goldman Sachs places the value of the spectrum at $5.5 Billion
>
> Salomon Smith Barney- places the value of the spectrum at $7 Billion
>
> Prudential Bache places the value of the spectrum at $8.5 Billion
>
> Nextel Claims they paid $2 Billion for the spectrum they are trading, plus $850 Million.
>
> Lets do the math.......
>
>     $2.00 Billion
> +   $850 Million                                        $5.5 Billion
> -----------------------                          ----------------------
> $2.85 Billion                   v.                 $5.5 Billion (lowest estimate)= WIN-WIN
> NEXTEL
>
> Which would you pick $2.85 Billion of mainly (Non-Contigous spectrum) or $5.5 Billion (
> worth of Contigous Spectrum)?
>
> [email-masked] wrote:
>
> >
> > Nextel is asking for this 10 Mhz of spectrum NATIONWIDE. Isn't it true
> > that they don't have the 800 mhz spectrum nationwide now? And for the
> > frequencies they do have at 800, they are not the sole licensee. So this
> > wouldn't
> > be an even swap of spectrum. They would be gaining new markets.
> > Additionally,
> > the 800 spectrum is split up,while the 1900 spectrum would be contiguous.
> > That spectrum is certainly worth more.
> >
> > Bryan
>