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Technology Stocks : Qualcomm Moderated Thread - please read rules before posting

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To: Pierre who wrote (12153)	6/27/2001 2:07:11 PM
From: engineer	of 196772

It is a matter of finding the sweet spot and overall costs. Voice or data is the same. Look at it this way. the one wiht the min number of towers gets the most coverage for the least dollars to start. At that point, if the cost per min is the same for both ( due to competition), then the lowest rollout cost wins. If you have to start by rolling out another 50-100% towers (assume for example that they all cost exactly the same to buy), then the guy who can rollout and get revenue with the lowest sunk costs wins. And then when the network is running he can SELECTIVELY roll out more towers as needed in higher demand areas. but this implies that he has users who want mroe bandwidth and will pay for this rollout. so the higher cost guy has to spend more rollout dollars at first and has no guarantee of return, where as the lower cost guy has less sunk costs and has the same return.

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