MMDS still at center stage

Since MCI WorldCom and Sprint began buying multichannel multipoint distribution service concerns, some remaining MMDS companies may be preening themselves to be bought.

World Wide Wireless Communications announced plans last week to build out and launch high-speed wireless Internet services in six markets (see figure).

"We are focused on building out what we have in North America because since MCI WorldCom and Sprint jumped into the race for frequency, acquiring spectrum is an important deal," said Douglas Haffer, president and CEO of World Wide Wireless. "There is a finite amount of spectrum...and acquiring licenses is critical for broadband wireless service to be successful."

Although the company has attracted four possible suitors, Haffer said he is not focused on an acquisition. However, he suggested if someone surfaced with an offer that makes sense, he might consider it. MCI WorldCom and Sprint's recent MMDS conquest mission has been "bottom feeding" because they were picking up companies deeply in debt, a place World Wide Wireless has not visited yet, Haffer said.

"Most of the major players have been bought," said Peter Jarich, an analyst with The Strategis Group. It's questionable whether any MMDS license holders ultimately will remain independent, he said.

Last week Sprint announced intentions to purchase WBS America, the fifth MMDS concern the company has bought recently. Combined, those companies offer Sprint access to 30 million households nationwide.