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Technology Stocks : NEXTEL

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To: Bubba who wrote (3251)11/17/1997 8:37:00 PM
From: Mark McLeod   of 10227
 
Bub, we seem to be focusing real hard on the almost exponential increase in new digital adds each quarter. But you know, the increase in the ARPU's is probably more important over the long haul. As the subscribor base flattens out, as it will, the $$'s will just keep piling up with a high ARPU and lower than industry churn rate. As the ARPU increases, as it has over the last three quarters, the payback on selling costs is recouped faster, GPM goes up and as I see it customer loyality increases. Seems to me that a higher ARPU equals an increased dependancy on the Nextel products.

Spouted off enough for tonight.

Mark
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