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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting
QCOM 172.17-0.8%1:19 PM EST
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To: mightylakers who wrote (6442)1/23/2001 5:35:53 PM
From: Maurice Winn  Read Replies (1) of 197054
 
ML, Leap's Cricket plan is a good example of applied capacity advantage, true. They are the only one I can think of which is willing to use that capacity to give a big consumer surplus to subscribers. Most CDMA [and other] service providers [like Vodafone] are greedy pigs with absurd price plans and CDMA's cost advantage is not readily apparent.

Even Leap won't compete with a company which sells CDMA Wacky Wireless. That's because when Leap is overloaded, people won't be able to get through, so what will Leap do about that? Leap will leave people without phone service or cut them off if the cell they are in suffocates and shrinks and the subscriber is at the periphery of it. People closer to the base station will retain service and those on the periphery will lose it.

Such a 'service denial' approach to customers will NOT be as good as giving them cheaper prices than Leap [overall] AND never cutting them off or leaving them stranded without connection.

Leap doesn't have a good low-end pricing strategy. They probably don't know that yet. Some other company with Wacky Wireless will one day eat their lunch.

The silly flat-rate fantasy, which telecom marketers seem to think is sacrosanct, won't last. People want things cheap and they want them available. Wacky Wireless is the Way [also called Cat's Eyes and CURRENT PRICE IS ...].

Mqurice
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