Twisted Pairs

Buyers and sellers, big vs. small, wireless Internet times two, and "waist" not, want not.

A T&T Wireless and Nextel rumors continue to swirl. For some in the industry, such a union holds a certain deja vu appeal. Back in 1994, Craig McCaw sold his Cellular One empire to AT&T for $11.4 billion. His blue-light-special acquisition streak of rural properties knit an attractive network, and his subsequent sale to AT&T was labeled as genius.

Shortly after depositing his multibillion-dollar check, McCaw set his sights on Nextel. At the time, the start-up was viewed as flailing with discreditable service, a meager few hundred thousand customers and a stock price in the toilet. Five years later, Nextel has blossomed into a competitively independent company with quality wireless service, roughly 10 million subscribers and a respectable $40 share price. Although questions abound about market overlaps and differing network technologies from such a teaming, similarly strong strategic direction could re-invigorate the ailing AT&T. Although McCaw only holds a 10% stake in Nextel, there would be a certain poetry in McCaw cashing in with AT&T again.

Big is better. Same mantra, different verse. Is that really a telecom company that is downsizing its holdings? What a surprising turn of events when we heard that SBC Communications, the U.S. telecom group, which owns 42% of Tele Danmark, may sell its stake in the Danish service provider and actually may exit Europe altogether in order to focus on service in the Americas. Sure, SBC, like other telecom companies, must make decisions necessary to create growth and ensure shareholder value. But when did that ever stop companies from having European holdings? You have to wonder if this contrasting view sweetens the SBC property pot for an inquisitive suitor or if this strategic hyper-focus will make the company more nimble in a world of bogged-down behemoths.

PCIA GlobalXChange and CTIA Wireless I.T. will be sharing show dates on the calendar next year. It's lamentable when any two industry events overlap. Exhibitors and attendees often are forced to make a choice. PCIA's refocused direction proclaims its show will be more wireless-Internet-centric, which on the surface suggests it will try to compete with I.T. It's equally unfortunate for PCIA that its 2000 Chicago event wasn't better attended. No doubt, industry participants will be making choices and commitments for 2001 based on the performance of the two events this year.

When did the opening general sessions of wireless events turn into commercial platforms? This year, an unprecedented number of industry gurus have been permitted to play pitchmen for their products. For example, at Wireless 2000 in March, Bill Gates, Microsoft chairman, demonstrated his company's new software and devices. Again, at PCIA GlobalXChange last month, Jeff Hawkins, Handspring's cofounder, provided a complete live demonstration of his company's VisorPhone. Sure, these guys have achieved an indisputable industry supremacy. However, they have gotten there because of their visions of the future. Let us mere mortals experience what they "see," not the products they hawk.

Invertex, a server company that will be launching at Wireless I.T., met with the press in Chicago to pre-introduce its products. It passed out one of the more humorous tchotchkes I have seen in recent past - a plastic pocket protector with "Telecom Nerd" emblazoned on it. Used to be the pocket protector was the true nerd symbol. But get ready for this millennium's nouveau-nerd gear: Wearing wireless devices on your waistbands. A year ago, when I first saw people wearing their phones, I thought it was a freaky fluke. Now it seems everyone is doing it. Myself included.