Leap Wireless International (LWIN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Leap Wireless International (LWIN)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: J.B.C. who started this subject	2/27/2002 3:52:01 PM
From: arun gera	Read Replies (5) of 2737

Detailed Conference Notes from Sue's Presentation at RS - LWIN initially thought consumers will like affordability of cricket. It seems they prefer the predictability more. Willing to pay $40-50 if there is predictability. - LWIN has a good cost model. - 6 percent penetration in one year. - Pay in Advance system, and not Prepaid. - Lowest CCU in business - Churn - Not so high given the early stage of most markets. Other wireless companies had churns as high as 8 percent in the same stage. Churn is coming down fast and better than expected. - 33 percent of customers take all 3 additional options, 50 percent take 2 additional options, and 66 percent take at least one option. - ARPU of $37 includes about 0.60 for long distance. - Few handsets. Typically 3 in each market. Nokia has 80 percent of the market. 1x handset Kyocera (with blue glow) is selling very well at $129/phone. Additional Kyocera phones had to be ordered to keep up with the good demand. - 1x in Denver and Phoenix. Don't need it in other marekts. Will add when needed. Have a bit of an advantage. - Buffalo launched on Feb 7. - Marketing. 85 percent brand awareness reached within 90 days of the market launch. Better brand awareness than the local bell company. - Hallmark green couch is helpful. - Most customers are middle income. - 6 percent have no land lines. - 61 percent use cricket as primary phone. - Some small businesses are buying in bulk for their employees. - To Build ARPU: Making it easier to add long distance. Previously only in stores. Long distance pricing has been reduced. Mobile messaging is a possibility. - Young dominate in customers. Trying to figure how to appeal to $9.95/month with 10 minutes emergency crowd of older people. - Cost per Gross add is low because of: simple advertizing, no clutter, no disclaimers etc, that take up so much space, can repeat the same messag over and over again in various markets. - Easier to negotiate with customers with a Green Couch than with Jamie Lee Curtis. - Good distribution in Staples, Costco, and Best Buy - Grocery stores - Krogers, Albertsons, Smith. Other Grocery stores want in. Simple for consumers. Add to Cart and cativate at home with an 800 number. - Non-selling cash cost of service is $9/month/sub for a typical CDMA carrier. $5.56/month/sub for LWIN. Reason: Fewer cell sites. Cell sites only cover 70 percent of the POPs in each market. Less backhaul costs and less technicians. - No question of bad debt as it is a pay in advance service. - Vendor financing used to date 1.1 billion out of 1.8 billion that is available. - 10 markets will become EBITDA in First quarter. More every quarter depending on the launch dates. Hope this helps. Arun -

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next