SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Nextel?????

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mark Steffler who wrote (23)8/30/1996 5:43:00 PM
From: Mo Chips   of 48
 
Here are some numbers to mull over...

An average cell site costs $150 to $250K for acquisition, zoning and construction. The radios for the cell from Motorola cost another $200k all the way up to $500k or more depending on the antenna type and number of radios per cell. A highly populated area will need a minimum of 100 or so cell sites. You will also need at least one switch that costs maybe another $10 or $20 million. Put that all together and you just spent anywhere from $60 to $100 million for one large city with "decent" cell coverage. Places like California that have a lot of mountains add more $$$.

Nextel covers, I believe, all of the 50 largest cities in the US.

You just spend $5 billion just for building where Nextel owns frequency, which the FCC will take back if you don't build out.

You also have to pay the Sales team, operations, G&A, etc. for offices in all of these cities.

I'll leave the looking at their annual report and financials to see if there is enough for this to you....

mo
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext