Looks like T could issue three tracking stocks,
not just one for wireless.
Stocks Pick Up
Brown Bag Lunch
November 24, 1999
Stocks picked up speed by midday Wednesday in
anticipation of the Thanksgiving holiday. After sinking into
the red early on, the Nasdaq rose 37.30 points to
3,380.17 at midday on anorexic volume of 568 million
shares. The Dow rose 21.11 points to 11,016.74 on thin
volume of 327 million shares.
Investors liked reports in the Wall Street Journal and the
New York Times that
AT&T (T: +2 3/4, 53 1/2)
is going to assign as many as three tracking stocks
for its wireless, Internet and infrastructure
businesses. An official announcement is expected at the
telecom giant's Dec. 6 analyst meeting.
... has a major fundamental advantage over the
proposed AT&T tracking stock -- Sprint was an early
adopter of CDMA technology, which can be inexpensively
upgraded for high capacity data. Wireless data is believed
to be a tremendous potential market.
wireless network is based on TDMA technology -- the
upgrade path to support high capacity data will
ultimately lead to a CDMA-based 3G network. This will be
Further, the other US-wide wireless competitor will be the
combined Bell Atlantic-GTE-Airtouch network, which
combines the CDMA-based infrastructures of these three
AT&T has a great brand name, which is still to its
advantage. However, its inferior wireless technology has
diminished this reputation and threatens to further impede
AT&T's ability to capitalize on a stellar brand name if
the inferiority of its network is not remedied.