"if a competitor comes out with similar service for lower cost, you can rest assured many companies will take the lower price"
That's a huge "IF". No one has anything even remotely competitive with NXTL's DC either in the pipeline or on the drawing board. Well, OK, the drawing board is a stretch but this is, after all, an internet bulletin board. Let's see where competitors have problems competing with DC. First, there's the latency or time delay problem. PCS got all hot and bothered a while back by claiming they would soon have a DC-like product. Oops, 8 second delays won't work so they are strangely silent now. Second, no wireless telco would select iDEN today because it's 2G and everyone is mesmerized on 3G. Third, Nextel checkmated the domestic CDMA crowd by buying exclusive DC-like rights from QCOM. Fourth, the TDMA crowd has tried and failed to come up with a DC product. No manufacturer will spend money they don't have to develop a DC product without a guaranteed sale from a telco. Oops, the telcos don't have any money. Fifth, many of NXTL's customers are irreversibly linked with suppliers, customers, etc. via DC. That is, you have to have NXTL phones to do business with them. So that creates a HUGE problem for any new DC product offering. Sixth, NXTL will introduce nationwide DC next year, further distancing themselves from the competition. Seventh,...oh, forget it as I've more than made my point. |
