This only adds more fuel to the argument that simply placing a multiple on a
company isn't where the "smart money" is.  

Revenue is largely irrelevant.  Profits are King.  Revenue doesn't put kids
through school or buy that new car...bottom line profit does.

The concept of fixed wireless has long lost its sizzle.  Simply stating
you're able to cut out the LEC and reap those dollars yourself doesn't
excite like it used to.  Profits, real estate assets, contractual
agreements, client base are key deal points in today's market.

While I agree WinStar and Teligent didn't do the fixed wireless industry any
favors, most of the bridges burned were with building management and not the
end user market.  Investor relationships may have also taken a toll, but
again the "smart money" isn't going to get all wrapped up in the sizzle.
They will be looking for real assets and real earnings.



-----Original Message-----
Behalf Of Matt Liotta
Sent: Monday, December 04, 2006 11:55 AM
To: WISPA General List
Subject: [WISPA] Industry failings

One the biggest factors holding our industry back is a lack of success 
on the part of the big poster children. People look at the past failures 
of WinStar and Teligent and wonder if new entrants can succeed. Many 
investors are watching FiberTower and NextLink to see if these new 
poster children can prove the business model.

It doesn't really matter that neither FiberTower or NextLink are 
representative of our industry. What matters is they are both publicly 
traded fixed wireless companies. This means that all fixed wireless 
companies are viewed through the lens of these publicly traded companies 
since they are the only ones with enough information for people to draw 
conclusions on.

If you look at FiberTower's and NextLink's latest numbers you should be 
very worried. NextLink is failing and I predict will be out of business 
in the not too distant future. FiberTower is much better off than 
NextLink, but they are burning cash at an impressive rate. One can 
easily predict them running out of cash sometime next year if things 
follow a similar trend.

Some of us on this list do more revenue than NextLink, but I doubt that 
will matter when they go under. Our valuations will decline in lock step 
to any failures by these two companies.

WISPA Wireless List:



WISPA Wireless List:



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