<<In response to your question about retention rate, no, we don't include Mindspring or other "wholesale" subscriber numbers in the figure. So, if for example, Web TV subscribers using our network go up in a given month, and Mindspring numbers go down, we don't reflect either in our retention rate.
The retention rate is affected by customers (i.e., direct corporate customers) who: (i) leave the Internet completely, (ii) go from PSINet to another provider, (iii) come to PSINet from somewhere else.>>
Sandie,
I find the above statements extremely helpful in understanding the dynamics involved, and in a subtle way, shedding light on some potential positive developments in the future. I certainly don't find it an attempt to obfuscate (whatever that means) anything. I appreciate such valuable insight from a key player in this or any company for that matter.
<<why embark on a new yardstick of "revenue per account"?>>
It doesn't take a rocket scientist to figure out that if you increase your account base at the same time you get the revenue per account up, there's leverage to the upside. Contrary to your observation of this being an effort to confuse the issues, I'd say there couldn't be any 2 single more important factors in the success or failure of an ISP than A)The number of accounts, and B)The revenue per account. With these numbers, I can determine THE TREND of business of PSIX, and make a business decision about whether to hold the stock. Please Mr. Kunkel, keep disclosing the revenue per account!! .....Tek |
