Just what are Craig McCaw and Nextel Communications Inc. up to, separately or together? Is there a grand plan waiting to be hatched or just some heady hedges that may-or may not-lead to something big? There’s enough of a history there to make recent moves of the two mavericks worth watching.
While it has official Washington and Wall Street in rapt attention over its plan to free public-safety agencies of 800 MHz interference it causes by rearranging frequencies and handing over a good chunk of spectrum to the wireless carrier for its trouble, Nextel is quietly putting pieces in place to become a wireless Internet juggernaut.
Last week, Nextel picked up Nucentrix Broadband Networks Inc.’s fixed-wireless assets in bankruptcy auction for $51 million. A few months ago, Nextel was the winning bidder for fixed-wireless properties sold by bankrupt WorldCom Inc., paying $144 million for licenses that will become more valuable after the Federal Communications Commissions revamps the 2.5 GHz band. Nextel bested BellSouth Corp. and SBC Communications Inc. in both bankruptcy auctions.
WorldCom and Nucentrix are two of the three largest holders of fixed-wireless licenses in the nation. Nextel is not spectrum starved in the wireless data space.
Guess who competed against Nextel for the Nucentrix licenses? That’s right. Craig McCaw, now down to less than 5-percent ownership in Nextel, was right there via Fixed Wireless Holding L.L.C. The later entity has a unique presence at the FCC in favoring a major overhaul of 2.5 GHz band.
McCaw, aside from raising big bucks for Bush-Cheney 2004 and litigating on the high seas, is investing in NextNet Wireless, a leading provider of portable, plug-and-play broadband wireless service based on the same OFDM technology that Nextel is toying with.
At the same time McCaw, who like Nextel created massive value by cobbling together wireless licenses to form a nationwide footprint, is backing out of a deal in which ICO Global Communications was to purchase bankrupt Globalstar L.P. mobile satellite licenses for $55 million. The finger-pointing has begun.
If nothing else, all this is interesting and a refreshing respite from wireless local number portability, California PUC bill of rights, 800 MHz consensus plan, consumer suits and other issues that dominate the news these days in every conceivable form.
It is hard to tell what McCaw and Nextel have up their sleeves. Perhaps they don’t know, which is fine too. Scratch your head all you want, or relax and wait to be surprised. Again.
