SPRINT - A SHADOW OF NEXTEL - PART 2
gad123
Oct 5 1998 8:42PM EDT
8. "The wireless industry ... has experienced a trend of generating a significantly higher number of customer additions and handset sales in the fourth quarter of each year...." Oh, yeah? Not NXTL. Does that tell us something about NXTL's success with businesses? Answer: YES.
9. "PCS Group owns licenses to provide service to the entire United States population, including Puerto Rico and the U.S. Virgin Islands." They currently operate "PCS systems ... (in) 38 of the 50 largest metropolitan areas." Kinda behind, eh? By June, 1999, they expect to be operational "in all of the 50 largest metropolitan areas and 80 of the 100 largest metropolitan areas in the United States."
10. "Revenues include subscriber revenues, roaming revenues and sales of handsets are normally sold at prices substantially below the PCS Group's cost."
11. ARPU for the six months ended 6/30/98 was $60.
12. "(C)hurn rates and customer marketing costs have been higher than cellular industry averages, but are within the range management expected at this stage of development." In other words, management had to change the expected churn rate to a higher % when they discovered that customers weren't as thrilled with CDMA as they expected them to be.
13. 1.3 million subscribers at 6/30/98, an increase of 1 million over the prior year.
14. They spent $3.1 billion to buy the PCS licenses. THAT'S A LOT OF BLUE SKY.
15. "As of July 31, 1998, the PCS Group's network was able to provide service in areas covering 108 million Pops or 40% of total Pops." They've got a HUGE cap ex ahead of them if they want to have a functional, complete nationwide footprint.
16. At 6/30/98, they had $3.3 billion in accumulated losses to date with much more to follow.
17. Net operating revenues, including roaming income, totaled $468 million for the six months ended 6/30/98. Losses for the same period were $1.191 billion.
Ok, there you have it. Comments?
Arnie
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