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Technology Stocks : Leap Wireless International (LWIN)

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To: Maurice Winn who wrote (2200)6/14/2002 12:36:04 AM
From: pcstel  Read Replies (1) of 2737
 
How would Leap go against a company offering a monthly bill of half, or a third, or even a quarter of Leap's, with the proviso that calls at overload times would cost more than calls off-peak, which would be free?

The summary of which is that I haven't bought Leap shares [yet] and would be more likely to buy the debt.


Maurice: You would have no customers! Parents buy Cricket Phones for their daughters to chit chat. They don't have to worry how long or when they chat. They know the price is going to be $32.95.

This happens everyday across America. Cell site located on a High School property. Bell rings between classes. 100 Students whip out their phones to call one another. Cell Capacity goes from zero traffic to fully utilized in about 45 seconds. The first bill that shows up charging them $10 dollars for their daughters 1 minute phone call to see where they are going for lunch would be 1 less subscriber. I'm cheap! But, even I wouldn't do something so foolish.

People want simplicity, and predictibility.

No one is going to try and save $15 bucks a month on a Cell Phone bill, if there is going to be that $125 zingger bill every now and then. It just makes no sense what so ever.

Oh! I wouldn't buy the public debt! Not much better off than the equity. Same goes for Vendor Debt if you could buy it! LU has controlling interest, so you would have to be subservent to Lucent's decisions.
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