Up-Date:
United States
The application process for two-way operations continues. We hope (This word HOPE is they key word here. Understandably WLGS is at the whim and mercy of the FCC. This is something that most bashers and naysayers have no understanding of) to receive approval from the Federal Communications Commission for two-way operations for places such as Grand Rapids, Key West, Aspen, Vail and others during the second quarter of 2001. Since these decisions are in the hands of the FCC regulators it is never a good idea to predict with exactitude when they will be made.
As was reported in our 10Ksb, a dispute has arisen between the Company and the representatives of Hubbard Trust over the license in Concord. Because there is the potential of litigation in that matter, the specific issues will not be discussed in this update. The Company had engaged the services of a national MMDS marketing team to re-launch the operations in Concord as of December 1, 2000. In light of the dispute that arose - the latest on many which have occurred in connection with Hubbard Trust and its related entities - the Company decided to suspend any significant re-launch there. (Horswispr, this comment refers directly to your confusion over the Concord site. Hopefully this will alleve your recent anguish over the lack of publicity for Concord. WLGS is clearly explaining that Hubbard Trust unfortunately has them "between a rock and a hard place" ...as the saying goes. I think it wise of WLGS to not spend tons of money in Concord when it may potentially become necessary to enter litigation with Hubbard Trust)
Concord and San Marcos (Northern San Diego County) are the Company's only one-way licenses. The two locations consist of one channel of 6 Mhz each. With current technology, it is not possible to offer two-way wireless in those locations so the Company was required, in Concord, to build both a one-way wireless and a one-way telephone system.
In May 1998 - at the time of the acquisition of the Company of the licenses from Worldwide Wireless, Inc and National MicroVision Systems - the Company had only three licenses in total. Two of them - Concord and San Marcos - were only one channel while the third, South Bend, was four channels. Since that time, WLGS acquired the rights to the other multi-channel systems for which it is now awaiting FCC approval for two-way transmission. With these new locations, the importance of Concord and San Marcos has diminished because, despite their very attractive demographics, they are of limited capacity and flexibility. WLGS is stating the reality that one channel frequencies will NOT be beneficial longterm.
Because of its proximity to corporate headquarters, and because of the time and effort that the Company has spent in building Concord, it is hoped that the current dispute between WLGS and Hubbard Trust will be amicably resolved. In the meantime, the Company is planning for the expected approval by the FCC of the two-way licenses later this year.
