WASHINGTON-Principals of the Code Division Multiple Access advocate North American Wireless Inc. are deep in discussions to decide if the organization has a future in the personal communications services arena. Some top personnel already have departed for other jobs.
While touting its success during the last two years in bringing CDMA technology to the forefront, the group’s one-paragraph July 16 release pointed to lack of funding as the reason it currently is weighing survival options. NAWI’s plan of becoming a turnkey network provider for PCS designated entities ran into difficulty when it could not put together the financing to buy networking gear, which it had planned to lease to its members.
“NAWI’s future, therefore, is uncertain, though its objectives are as valid as when it started,” the release said in part. “As with any organization whose future is uncertain, employees are keeping all of their options open, though we are unaware at this point of any NAWI employees leaving the company to continue the plan elsewhere.”
According to Carl Thompson, NAWI’s president, the group had been “pursuing various strategies to raise money and buy equipment. We had bulk buying agreements [with manufacturers] but we couldn’t find the money to pay for it.” Calling the group’s mission “a tall order,” Thompson said the C-block PCS market in general has been experiencing financial problems related to the high cost of spectrum and capital. “We’ve told our customers that we have not been able to accomplish our goal,” he added.
Thompson also mentioned that some NAWI members received information packets from NextWave Telecom Inc. during the past eight weeks regarding the types of equipment deals and services that C-block winner could offer, but he said no NAWI member has resigned from the association to sign with NextWave.
NextWave spokeswoman Jennifer Walsh told RCR that no information packets have been sent from the Washington, D.C., office. Calls to NextWave’s San Diego headquarters were not returned.
NAWI member Russ Smith of Poka Lambro PCS Inc. in Tahoka, Texas, told RCR that if the organization did decide to dissolve, it would have no effect on Poka Lambro’s business plan governing its markets in Texas and New Mexico. “Our agreement with NAWI is non-binding,” he said. “We have been looking at every provider on a case-by-case basis. If we were to receive information from NextWave, we would look at it, but we wouldn’t just jump in.”
Company personnel have not been given formal notice that NAWI could be disbanding, although sources say resumes have been received by other PCS organizations in town. “Everyone who signed up with NAWI knew they were coming into a startup,” Thompson said. “Concerns have been unvoiced-they know we have problems. I support individuals actualizing themselves, and they should not sacrifice themselves for the company.”
All this apparently is news to James Valentine, who says he is the largest shareholder in NAWI. “NAWI will continue to exist, but the mix of services and people will change,” he said. “We will be bringing technical and infrastructure people into the company to concentrate on equipment.”
Indeed, Valentine said NAWI has encouraged personnel “with different skill sets that we don’t need anymore” to find new employment, and that the company has helped them with job leads.
Valentine said that NAWI’s original charter was to serve as a billing, customer-care and equipment provider for what originally was thought to be “many, many small companies” that would be getting involved in PCS. When it became apparent that C-block licenses would be dominated by only a few large players, Valentine said NAWI needed to change. Valentine also said that NAWI had no financial problems, that plenty of money was available to pay for infrastructure equipment.
He also acknowledged that NextWave had been in contact with NAWI members and had been urged to do so. “We’ve been working with NextWave all along as the largest C-block license holder and our largest customer,” Valentine said. “We’ve encouraged them to take over customer care for the smaller licensees.”
