Nextlink Expands LMDS Presence With WNP, Nextband Purchase

Service provider Nextlink plans to acquire Local Multipoint Distribution Service (LMDS) operator WNP Communication for $695 million in cash and stock. The deal gives Nextlink new wireless licenses that it will use to supplement the 16,000-mile fiber network it has under construction. Nextlink will pay approximately $542.1 million for WNP and $152.9 million Federal Communications Commission. In return, Nextlink will receive WNP's 39 A block LMDS licenses covering 98 million POPS and 1 B block LMDS license covering 16 million POPs.

Nextlink has also acquired Nextel Communication 50% interest in Nextband, a joint venture between Nextel and Nextlink that owns 13 A block LMDS licenses and 29 B block licenses. Nextlink will acquire these cshares for approximately $137.7 million.

After combining the licenses acquired from WNP with Nextband's licenses, Nextlink will cover approximately 95% of the top 30 markets in the US. Nextlink intends to use the wireless licenses to extend and complement its local fiber networks as well as the company's 16,000 mile inner-city long fiber haul network called Internext, which is currently under development.