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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: Maurice Winn who wrote (22114)8/5/2002 7:59:01 AM
From: Steve Lee  Read Replies (1) of 74559
 
You can work out the cost per minute from the cost per Meg and the bandwidth available.

I'm not interested in the cost as per a QCOM white paper. What is important is that according to the financial results of all the wireless operators, they do not make a profit. That means that the cost per minute is above the price per minute. And the price per minute is way above what you put forward.

That is the case even with operators whose networks are close to capacity, and are therefore achieving all the benefits of economies of scale. The cellphone consumer is getting a massive subsidy from OPM. That OPM comes fromthe shareholders and bondholders of companies like Vodafone, Hutchison etc - many of whom will never see back their original investment.
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