Will Modeo’s Spectrum Buyers Use It For XM?

An interesting backstory to the two private equity firms buying the Modeo spectrum from Crown Castle, as reported by Twice: the PE firms Telcom Ventures and Columbia Capital had previously been investors in WCS Wireless (and also investors in XM), which XM planned to buy to offer multimedia subscription services, including video and data.

WCS later pulled out of the deal in mid-2006, citing the slow pace of getting government approval for the transaction, and was later acquired by telecom company NextWave. The leasing deal by the two XM investors gives XM another possible means of obtaining additional spectrum..though of course this is just speculation as the two PE firms have not said anything about their plans with this spectrum.

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