SI
SI
discoversearch

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 : XM Satellite Radio Holdings Inc. (XMSR)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: i-node who wrote (401)11/25/2002 12:11:31 PM
From: pcstel  Read Replies (1) of 3386
 
But in years of preparing and reviewing financial projections for smaller businesses, I've never seen one as close as these guys have been.

You should check out Leap Wireless. Executed perfectly according to "the plan". Went from 20,000 subs to 1.5 million subs in 16 months. Annualized Revenues of 600 million. CPGA of only $230 dollars on ARPU of $38. But, lack of contracts, Churn rate, and most of all subsidies killed them. It sucked out all the Cash!

If you don't subsidize, then you end up with subscriber equipment that is too expensive that no one will buy. Like Globalstar. The trick is to sell a subscriber unit that can easily scale, and be sold with a subsidy and resulting CPGA at a point that you can recover these CASH ITEMS with service revenues in a short time period. Like 6 to 8 months. If not the cost of capital is going to eat you alive.

I think you're all balled up about these subsidies, which frankly, will go away in a very short period of time.

I am more "balled up" about the ratio of the degree of the subsidies and CPGA vs. ARPU. But, to get us back to the begining, more so about GM trying to convert long term (up to 6 years out) unsecured payables into near term unsecured debt instruments. I have just found that to be a "bad sign".
PCSTEL
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News