Brooklyn, N.Y. -- CellularVision USA Inc., which pioneered
a wireless-communications system known as local multipoint distribution services, has
completed the sale of 850 megahertz of its LMDS spectrum to WinStar Communications Inc.
for $32.5 million.
CellularVision, based here, announced its intention to sell
the spectrum in July. The company will use the proceeds of the sale for working capital
and to help pay down debt.
WinStar, based in New York, provides fixed point-to-point
broadband services to business customers in about 27 cities across the country. It would
use CellularVision's spectrum to augment its network in the New York area.
As a result of the sale, CellularVision said it would
discontinue its LMDS video operations. The company, which retains 450 MHz of LMDS
spectrum, said it would focus its efforts on providing high-speed Internet service in the
New York area.
CellularVision is also appealing its delisting from the
National Association of Securities Dealers Automated Quotation system. CellularVision
stock -- which will remain on the NASDAQ exchange until the appeal period is completed,
which is expected in mid-January -- closed at 50 cents per share last Tuesday.