Leap Wireless International (LWIN) Message Board

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Technology Stocks : Leap Wireless International (LWIN)

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To: arun gera who wrote (1552)	2/27/2002 4:44:14 PM
From: pcstel	Read Replies (1) of 2737

- LWIN initially thought consumers will like affordability of cricket. It seems they prefer the predictability more. Willing to pay $40-50 if there is predictability. [Edit- slacker already posted this data on the post below..] Important data.. 11 million out of Cricket's 25 million Covered POP's are in the $29.95 monthly service fee areas! I would guess that a price increase up to $32.95 per month would increase ARPU to $39 to $40 dollar range. 10 markets will become EBITDA in First quarter. More every quarter depending on the launch dates. Most of these first quarter markets are older $29.95 markets. A price increase to $32.95 would increase COS margins another 10%, which should fall directly to improve EBITDA. In addition. $32.95 markets should become EBITDA positive faster than the $29.95 markets if penetration levels are the same! That is why I call for EBITDA positive in Q3 vs. Q4 as guidance. PCSTEL

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