Bidders currently participating in the auction of D-, E- and F-block broadband personal communications licenses are as diverse as the markets they are pursuing.
Many come with deep-pocketed backers, including insurance companies, and others are working with no revenues or assets at all. Some are taking advantage of the Federal Communications Commission’s stance on partitioning a license, and agreements for such either are in place or are in negotiations. A few of the companies profiled this week were successful C-block winners who still await their licenses.
Valley Wireless L.P., headquartered in Freedom, Wyo., applied to bid as a small business with a 25 percent discount; the company wants to secure only one market-Idaho Falls, Idaho, and it is bidding for all three blocks.
The partners already have signed a letter of intent with Silver Star Telephone Company Inc., which is bidding on Rock Springs, Wyo.; and Fremont Telcom to partition portions of its license if it is the successful bidder, although terms have not yet been formalized. Valley’s total gross revenues were $5.1 million in 1995; assets total $12.9 million.
Wireless II L.L.C., located in Fremont, Neb., is a woman-owned small business with partners including several small Nebraska telecom concerns. The company has opted to bid on all licenses available during Auction 11.
Technicom L.L.C. of Monroeville, Ala., is a small business pursuing licenses in all blocks. None of the three principals claims any telecom experience; two are owners of an equipment rental service. 1995 gross revenues of the limited partnership were $15.5 million; assets total $15.4 million.
Magnacom Wireless in Vancouver, Wash., has selected D-, E-and F-block markets in California, Idaho, Texas, New Mexico, Colorado, Arizona, Hawaii, Washington, Oregon and Utah. According to its Form 175, the company’s principal business is “owning, operating and managing PCS networks.”
ACC-PCS Inc. in Providence, R.I., has selected D-and E-block licenses for bidding. There has been some experience on the part of the bidders in the cellular industry.
Oklahoma City’s OnQue Communications Inc. is a small business that is bidding on almost all of the available licenses. Associated Communications & Research Services owns 100 percent of the entity, and it currently is negotiating consortium agreements with three other companies: Anishnabe Communications Enterprise, a Michigan tribal group; Redwood Wireless Corp., which also is bidding in this auction; and Wireless Facilities Inc. OnQue was formed in 1995, and it has no assets or revenues to report; however, owner Associated reported 1995 assets of $932,766.
Redwood Wireless Corp. in Redwood Falls, Minn., is a rural telco claiming the small-business 25 percent bidding discount. It is bidding on selected D-, E- and F-block properties. Because the company was formed in 1995, no gross revenues were reported; however, total assets as of July were $314,000. Redwood County Telephone Company, which is one of the bidder’s security holders, reported total assets last March of $15.8 million.
Entertainment Unlimited Inc. in Monte Sereno, Calif., is a minority-owned business claiming a 25 percent bidding credit. It plans to bid on all licenses. The real party of interest is Raveesh K. Kumra, who holds all company stock in his account; according to his Form 175, Kumra works at Western Cellular Management, and he owns portions of three cellular concerns in Louisiana and California.
PCS One L.L.C., located in Appleton, Wis., is a small business bidding on D-, E-and F-block licenses in Appleton-Oshkosh, Wis; Fond du Lac, Wis.; Green Bay, Wis.; and Marinette-Menominee, Wis. The company has three voting and one non-voting principals, and its main business is “the development and operation of broadband PCS systems.” Principal Rich Schuchart owns a cellular, paging and electronic voice mail servicing company; and Ameritel Paging Inc. Aggregate gross revenues for the entire control group for 1995 were $1.13 million.
North Dakota PCS Alliance, a Joint Venture, is a rural telco whose partners include Northwest Communications Cooperative, Reservation Telephone Cooperative and Midstate Telephone Company Inc. Midstate has entered into an agreement with Consolidated Telephone Cooperative, which also is an auction bidder, to partition the Billings and Golden Valley county service areas of the Dickinson, N.D., basic trading area if Consolidated is successful in gaining that market. 1995 gross revenues for the venture were $10.5 million; assets total $34.9 million.
Northcoast Operating Co. Inc. of Syosset, N.Y., reintroduced John Dolan to the auction process. The small business is bidding on all licenses. Northcoast’s holding company, Northcoast Holding Co. Inc., owns 100 percent of the stock; and Dolan serves as president, secretary and treasurer of both entities. Stock and stock options have been issued in the venture, and Dolan certified that he currently is involved with negotiations with other possible investors. Tele-Communications Inc. was not named in the Form 175 as being one of those investors.
Polycell Communications Inc. in Winfield, Ill., claims to be a small, minority and woman-owned business headed by Laura Johnson; it will bid on all licenses. The company won six C-block licenses earlier this year. The bidder has designated The Richard Vega Group to perform its bidding/withdrawal functions. Polycell’s 1995 gross revenues were $1.3 million; assets as of July totaled $3.7 million. The following concerns hold direct ownership interests in Polycell: Mobile Tech Communications Inc., and Independent Cellular Consultants.
BRK Wireless Company Inc., based in Park Ridge, Ill., is another small business claiming minority and female ownership. It is pursuing only F-block licenses. Held by the Kimura family, BRK was successful in the earlier C-block auction; there are no revenues to report.
Consolidated Communications Inc. of Mattoon, Ill., is bidding on the D and E blocks. Most of the stock in the company is being administered through family trusts; Series A securities are held by Nationwide Life Insurance Company (two separate accounts) and Employees Life Insurance Company. Series B securities are held by Nationwide Life Insurance Company, First Penn-Pacific Life Insurance Co. and Lincoln National Life Insurance Company. Other funds have been gained by bonds and personal loans from shareholders. Consolidated owns Consolidated Communications Telecom Services Inc., a paging company; and 95 percent of Illinois SMSA Limited Partnership, a cellular company.
First Wireless Inc. in Mt. Vernon, Ill., is looking at all blocks and is owned by Southern Illinois Cellular Corp. Shareholders in Southern Illinois include: Wabash Telephone Cooperative Inc., Hamilton County Telephone Co-op, Shawnee Telephone Company, Harrisonville Telephone Company, Egyptian Telephone Cooperative Association, The Crossville Telephone Company and Odin Telephone Exchange.
Delton, Mich.-based Message Express Company, a rural telco, is bidding on D-, E-and F-block licenses in Battle Creek. Mich.; Jackson, Mich.; Kalamazoo, Mich; and Lansing, Mich. The corporation is owned by Barry County Services Company, which has certain private radio and cellular interests. Barry’s gross revenues for 1995 totaled $4.4 million; assets as of June 30 were estimated to be $12.6 million.
Another Michigan concern, Alpine PCS Inc. in Gaylord, is owned by the Robert Broz family; it plans to bid in all markets. Security holders include RFB Aellular Inc., owned by Broz, who also holds 99 percent of Alpine’s stock; and Cellular Information Systems Inc. Alpine has entered into agreements with Central Wireless Partnership, another bidder, for possible joint ventures in certain markets if either is successful in this auction. Attributable gross revenues in 1995 were $6.8 million; total assets as of July 31 were $48 million.
Wisconsin RSA 7 L.P. in Appleton, Wis., has chosen only one market-the D-an
d E-block license for Stevens Point-Marshfield-Wisconsin Rapids, Mich. The group is made up of one general partner and nine limited partners, all in the telecom business.
Airadigm Communications Inc. in Little Chute, Wis., is a small business bidding in the F-block only; it was a winner of 13 C-block licenses. The four-man group has two shareholders: Wisconsin Wireless Communications Corp.; and Oneida Enterprises Development Authority, owned by the sovereign nation of the Oneida tribe of Wisconsin. Wisconsin Wireless currently owns 70 percent of the equity and voting stock, while OEDA owns the remaining 30 percent. OEDA has an option to buy an additional 19.9 percent of the equity and voting stock, which it probably will do if the applicant wins a license. Airadigm also owns 19.9 percent of Pacific PCS L.L.C., which will be filing an application to provide PCS services in Las Vegas; Pacific has a 25-percent partnership interest in DCR Pacific PCS Limited Partnership. Because the company was formed in 1995, there are no revenues to report.
