All of the theories and threats about the C-block personal communications services auction and its problems may soon become very real. Pocket Communications Inc., already in bankruptcy proceedings, may not emerge. The nation’s ninth largest PCS licensee (based on total population), reportedly is trying to sell its assets.
In a few weeks, the PCS bidders that cannot afford to pay for their licenses, or that have scaled back buildout plans for other reasons, will have to submit their restructuring plans to the Federal Communications Commission.
One C-block licensee, ClearComm L.P., has said it may dissaggregate as much as half of the licenses it gained during the auction in return for debt forgiveness.
NextWave Telecom Inc., which-according to population base figures-is the nation’s largest PCS licensee, has been struggling under its debt load. General Wireless Inc., which was listed in 18th place in RCR’s Top 20 PCS operators, also has declared bankruptcy, noting that none of the FCC’s restructuring plans were feasible for the company.
The FCC rules were fair. This is business, after all. A company that is not able to pay for its licenses should not be able to keep those licenses. Failed business plans should not be rewarded.
There are players ready to take over Pocket’s licenses. There is wireless competition. Prices have gone down. Use is up. The public has more choices. Goals have been fulfilled.
But having said that, let us as an industry note that a failed business plan can affect many. People have lost jobs, lost dreams, found out the sacrifices made weren’t enough. On a larger scale, infrastructure manufacturers and handset makers, distributors, retailers, real estate owners and trade newspapers all lose a little when a Pocket fails.
Looking at RCR’s Top 20 PCS operators, only a few of the companies that are actually operating have fresh faces. It was the Pocket’s that offered the best chances for that.
Will we be an industry of Blockbusters?
… Kudos to Mtel for snagging the Enron project. The messaging industry always continues to surprise me. Those who predict its demise will be proven wrong. Messaging will evolve, but it won’t die.
Question is, can the paging function survive the “taps” people give thermostats to get them to get the heat on.
